Trump is Forcing Apple’s Hand for U.S. Investment, says Foxconn

Apple’s manufacturing partner Foxconn admits to feeling the heat from President-Elect Donald Trump, regarding the company’s setup of local factories

So, it’s true. Apple is indeed on route to bringing at least some of its manufacturing back home. This is according to ABS-CBN, who’ve confirmed that Foxconn is in ‘preliminary discussions’ regarding a future U.S. investment.

Foxconn, a Taiwanese tech goliath, is Apple’s manufacturing arm in China. Along with Pegatron, Foxconn is responsible for assembling every major Apple product. So, when they talk about investment in the U.S, you can bet that it’s over Apple’s product manufacturing.

The talks were reportedly initiated after Donald Trump struck a deal with Japan’s SoftBank, worth $50 billion. The deal also involves Foxconn, maybe acting as bait for it to bring jobs to the U.S. And apparently, SoftBank’s CEO is good friends with Foxconn founder Terry Gou. It seems Trump knows which strings to pull on this one.

Of course, this isn’t the first time we’ve heard about such a move. A few weeks back, it was rumored that Apple had asked both Foxconn and Pegatron to conduct preliminary research on the feasibility of the move. At that time, both firms’ responses were discouraging.

Then, in an interview with the New York Times, Trump mentioned his chat with Apple CEO Tim Cook. Trump said that he made clear his intention of bringing Apple’s manufacturing back home to Cook. He sweetened the pot by offering ‘huge tax and regulation cuts.’ Cook, on a separate venue, said that it would be difficult to achieve what Trump wants. His concerns were not monetary, rather he felt that America lacked the necessary labor skills to produce Apple products on such a large scale. He said while the U.S. would have a room filled with such people, one could fill multiple stadiums with the same in China.

But it appears that Apple has reconsidered its position. ABS-CBN mentioned that Foxconn is set to bring 100,000 jobs to the U.S, in two separate $7 billion and $50 billion investments. If true, it could prove to be a massive boost to the American economy, and an ideal start for Trump’s turmoil-stricken presidency.

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