Why did Terry Gou build factories in China, not the United States?

The United States Terry Gou China shares

shuimuran· 2017-03-19 07:58:57

financial decision No. 1: ENNweekly ("press copy)

source: knife horse (micro signal: daomawuyu

, Foxconn President Terry Gou started in the 10.5 generation display the Ecological Industrial Park ceremony confirmed the acquisition of Toshiba" we have the intention, SHARP experience, if Toshiba is given to us, as Toshiba users and partners, we will assist them in business, in order to inject funds and many elements, allowing them to sell products to all over the world, and we will invite them to Chinese cover plant, they can bring the core technology in japan. "In February this year, the Toshiba Co announced that the United States will detract from the nuclear power business under $6 billion 300 million, due to the urgent need of cash to maintain operations, the company intends to use the majority stake in its business to sell flash tablets. So why did Terry Gou choose to build factories in China, not to the United States? Although Trump vowed to make the rise of American manufacturing, but it is not easy to attract manufacturers to go.

" to build factories in the United States, easier said than done?

in recent years, Foxconn frequent action in mergers and acquisitions. Last year, Foxconn's parent company Hon Hai bought $3 billion 800 million of SHARP's $66% in debt. What is interesting is that Terry Gou eventually determined or hope to build factories in China, the contents of their future acquisitions may be moved to China to produce. While the time market is also rumored that Foxconn is still considering building factories in the United States, however, Terry Gou requirements must have tax incentives. As for the Trump administration will not give Foxconn this treatment? Time can be seen perhaps only eventually settled the.

of course there are many unknowns to build factories in the United States, now more eyes Terry Gou or in the Chinese market, respectively in February 24th and SHARP and Softbank to establish a joint venture company, at the beginning of the March Foxconn Guangzhou 10.5 generation display Industrial Park groundbreaking ceremony began. This is the end of last year, Foxconn and the Guangzhou government agreed, Guangzhou municipal government and the Fuji Yasuko Sakai display product corporation (SDP) signed a cooperation in eastern Guangzhou's Zengcheng industrial park construction, the project with a total investment of 61 billion yuan.

for Foxconn, this is a lot of money to invest in the future layout of the display industry is significant. Based on the display technology, Foxconn led SHARP involved in medical, health, education, automotive and other fields, aimed at the Internet of things, smart city construction. The industrial park for the future layout of Foxconn is obviously very important.

for the U.S. market, the market has also been rumored Foxconn intends to get involved in manufacturing plant. According to the Wall Street Journal reported that Foxconn Technology Group is still talking about the establishment of a flat panel display factory in the United states. It is reported that in the United States, the establishment of a similar flat panel display factory in Guangzhou negotiations have been carried out for several years. Terry Gou has previously said that he still wants to invest $7 billion to build a factory in the United states. Terry Gou said that in order to fight for such a plant, the United States must provide tax incentives and staff training programs, but also to study how to work in china. He said that if any state of the United States government wants to attract Foxconn to build factories, they should go to China to study and research, to see how in such a short time, in China how to accomplish so many matters.

Terry Gou has also made it clear that the United States to set up a panel manufacturing plant depends on many conditions, such as investment conditions, Foxconn must negotiate with the U.S. state government and the federal government. Foxconn is working with SHARP. Terry Gou also said that over the years, Foxconn has been considering building factories in the United States, and later Foxconn partner Softbank chairman Sun Zhengyi and he discussed investment matters. It is reported that Sun Zhengyi was ready to invest in the United States, he consulted with the views of Terry Gou. Terry Gou told Sun Zhengyi that the United States does not have manufacturing industry panel, but it is the world's second largest TV market; if the investment in the construction of the panel factory in the United States, the funds may be more than $7 billion to create 3-5 million jobs. At present, Foxconn has set up operations in Pennsylvania, Terry Gou said Pennsylvania is a key priority to the development of Foxconn, because it is in very good condition, including land, water, energy, infrastructure and other investment conditions.

Terry Gou stressed that Foxconn will still operate in China, Beijing will not put pressure on Foxconn investment. If Foxconn really in the United States to invest $7 billion to build it, then Fuyao Group Chairman Cao Dewang for $1 billion in the United States plant is "drizzle". It is clear that Foxconn's ambition is still great, the confidence in the manufacturing sector has been very adequate. Long term in the Chinese market, Foxconn has also been a lot of government incentives for Foxconn's growth is also very helpful. So easy to Foxconn's withdrawal is too early, the Chinese market is actually the root of Foxconn". Whether it is the industrial chain or industrial workers, as well as to bring technology accumulation, deep processing, OEM and other capabilities are Foxconn can not give up the choice.

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