After Trump call, Foxconn recommits to Wisconsin factory

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Foxconn Wisconsin
Foxconn says today it will build a factory and provide jobs in Wisconsin.
Photo: Foxconn

How a Foxconn factory in Wisconsin takes shape depends on what day of the week it is.

Today, company CEO Terry Gou is committing to a “Gen 6 fab facility” in the dairy state after having a “personal conversation with President Donald Trump.

How many jobs will come with a Gen 6 fab facility or what exactly it will build is not known. A Gen 6 factory typically builds screens for smartphones, tablets and small televisions.

Foxconn says it can’t afford to make TV screens in Wisconsin

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Foxconn signing
Foxconn and University Wisconsin officials signing a deal for a research center.
Photo: Bryce Richter/University of Wisconsin-Madison

Foxconn, which promised to create 13,000 jobs with a $10 billion factory in Wisconsin, won’t be producing state-of-the-art TV screens here as planned.

The news may not come as a big surprise to critics of the deal, which gave the iPhone maker the richest subsidy package in the state’s history. Foxconn has already forfeited some of those tax credits after it missed 2018 hiring goals.

Lack of screws put the hurt on Apple’s U.S. manufacturing plans

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Screws 1
This anecdote illustrates why U.S. manufacturing is so tough for Apple.
Photo: Gemma Stiles/Flickr CC

President Trump has suggested that Apple manufacture its devices in the United States. But things aren’t quite so easy as that — as a New York Times article makes clear.

It describes the challenges Apple faced when it tried making its top-of-the-line Mac Pro in the U.S. several years ago. One of the big problems? Simply, that Apple couldn’t get hold of enough screws to assemble the $3,000 computers in Austin, Texas.

Apple wants tax incentives to boost iPhone assembly in India

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iPhone assembled in India
One of the first iPhones "assembled in India."
Photo: Indian Express

Apple is hoping to secure new tax incentives in India that will allow it to increase local iPhone production and export more devices to be sold in other countries.

The company has teamed up with other large names in the Indian Cellular and Electronics Association (ICEA) to propose a raise in export credits on smartphone shipments, as well as tariff cuts on imports of components and machinery.

The group argues that manufacturing growth cannot be sustained and accelerated without the changes.

iPhone suppliers could leave China if trade tariff hits 25%

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iphone XS
Apple will look to avoid iPhone import levies above 10%.
Photo: Apple

iPhone suppliers will reportedly consider moving away from China is U.S. trade tariffs hit 25 percent.

Sources say they will remain even if the U.S. introduces a 10 percent tax on smartphones, but they could be forced to “reassess the situation” should the Trump administration impose a higher rate on imported goods.

iPhone production could head to Vietnam to avoid U.S. trade tariffs

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iPhone XS box gold
Designed by Apple in California. Made in Vietnam?
Photo: Ste Smith/Cult of Mac

iPhone assembly partner Foxconn is considering the possibility of opening a new facility in Vietnam in an effort to avoid U.S. trade tariffs.

The factory would focus specifically on iPhone production, according to a new report. Vietnam Chamber of Commerce and Industry Vu Tien Loc says talks with Foxconn are underway.

Foxconn denies US plant will be staffed with Chinese engineers

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Foxconn Wisconsin
Foxconn is moving to the U.S.
Photo: Foxconn

Apple’s top manufacturing partner Foxconn is denying a recent report from the Wall Street Journal that the company is looking to staff its new Wisconsin plant with employees from China.

Foxconn allegedly plans to bring engineers to fill a gap in prospective talent due to a tight labor market, the Journal claims. The plant has already been scaled back in size. Adding Chinese laborers instead of creating American jobs would certainly cause even more controversy.

Apple just leased another massive facility in Silicon Valley

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McCarthy Creekside 2
A render depicting one part of the new McCarthy Creekside facility.
Photo: McCarthy Creekside

Apple has snapped up a 10-year lease for a large, 314,000-square-foot warehouse in Milpitas, California, approximately a fifteen minute drive from Cupertino.

The space is located at McCarthy Creekside, a new multiphase development located in the city of Milpitas. Apple is reportedly paying in the vicinity of 90 cents per square foot. According to developer Joey McCarthy, McCarthy Creekside is intended for “industrial, R&D, [and] manufacturing.”

Apple switching suppliers to cut production costs

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Apple
You don't get to $1 trillion without knowing a thing or two about saving cash.
Photo: Apple

Apple may have just passed the $1 trillion mark, but it’s still looking for ways to save money. In its efforts to keep manufacturing costs as low as possible, the company is supposedly shifting production for its various devices from Taiwanese suppliers to Chinese ones.

iPhone maker slams China’s overtime caps

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Foxconn
Foxconn's CEO says China's overtime rules are too strict.
Photo: Foxconn

Foxconn could assemble even more iPhones if China eased restrictions curbing factories from abusing overtime, the company’s CEO says.

Billionaire Terry Gou says China’s rules on overtime keep workers from earning more and puts limits on Foxconn’s competitive edge.