Terry Gou is intent on building Foxconn Technology Group's international footprint.
The world's largest maker of iPhones is readying $10 billion or more of investment across several U.S. states, starting with a decision by July on the location for a $7 billion display-making plant. Foxconn's billionaire chairman also vowed to press on with a bid for Toshiba Corp.'s semiconductor business -- a deal that could cost $27 billion and usher Foxconn into the memory chip business.
The founder of Foxconn is now weighing the pros and cons of locating the factory in one of several U.S. states, including Wisconsin. Taiwan's richest man said he'd been in dialogue with the White House and various state governors -- one of whom called him moments before he kicked off Thursday's shareholders meeting. A cutting-edge plant in the Midwest would mark a victory for President Donald Trump and his effort to bring jobs back to America.
"Our investment in the U.S. will focus on these states because they are the heart of the country's manufacturing sector," he told investors. "We are bringing the entire industrial chain back to the traditional manufacturing region of the U.S. That may include display making, semiconductor packaging and cloud-related technologies," Gou told reporters later, without elaborating.
Gou said the plant could be awarded to one of seven states, naming Ohio, Pennsylvania, Michigan, Illinois, Wisconsin, Indiana and Texas. The company could end up creating "tens of thousands" of American jobs, Gou said without specifying a timeframe for the $10 billion in investment.
Hon Hai Precision Industry, the world's largest manufacturer of consumer electronics and the main listed arm of Foxconn, has steadily expanded production outside of its main base in China and also invested in new spheres of technology. Gou promised investors he'll continue the pursuit of Toshiba's prized memory chip unit -- even though it had never been among the frontrunners and the Japanese company's stated its clear preference for a bid led by Bain Capital and local government-backed companies.
The billionaire blasted government agencies for pushing an in-house deal, saying it was a "minority of bureaucrats" who're promoting a Japanese-led offer. Gou, who has been vocal about his desire to land the deal, didn't go into details but reminded investors how Hon Hai beat out rivals for Sharp Corp. in 2016. Hon Hai is said to have considered offering as much as $27 billion to force Toshiba to take its bid seriously, and had been in talks to rope in allies such as Apple Inc. -- its largest customer.
"The Toshiba deal isn't over. It is similar to Sharp's story," he said. "I believe we still have a big chance."
Business on 06/23/2017