Apple manufacturer might open plants in US

If Foxconn comes to own, the Mac maker will no longer have any excuses to avoid domestic production.

By Benzinga Nov 9, 2012 1:35PM

Circuit Boardcopyright Datacraft Co Ltd, imagenavi, Getty ImagesBy Louis Bedigian

Apple's (AAPL) chief manufacturer, Foxconn, is interested in building a facility in the U.S.

According to DigiTimes, the Taiwanese manufacturer "reportedly plans to establish manufacturing plants in the U.S. and is currently conducting evaluations in cities such as Detroit and Los Angeles, according to market watchers."

"Since the manufacturing of Apple's products is rather complicated, the market watchers expect the rumored plants to focus on LCD TV production, which can be highly automated and easier," the report claimed.

While this report has yet to be confirmed, domestic TV production is not out of the question. One small firm, Element Electronics, started manufacturing TVs in the U.S. last March. The components are made in China but the final TVs are assembled locally.

In recent years, some companies have manufactured TVs in the United States to avoid the headaches associated with making them in China. Unlike small gadgets, which can be packaged safely and shipped cheaply, TVs are large and awkward devices that are difficult to transport. Wages may be lower in China, but the other expenses are hard to justify.

Most iPhone and iPad components are made in China and South Korea, but some are produced locally. For example, Corning (GLW) makes the iPad display glass in America. Since iPads are assembled in China, the company is forced to ship its glass across the world -- at Apple's expense.

Corning is not the only Apple supplier that manufactures items in the U.S.; Intel (INTC) does the same. Samsung, Apple's leading adversary, produces a small number of components in America. While the iPhone maker is attempting to distance itself from its South Korean competitor, Apple is still a Samsung customer.

In May, Apple CEO Tim Cook said that he wanted to see more manufacturing in America. He did not provide any hints or details explaining how his or other companies could make this happen, but his words may have been a clue regarding Foxconn's plans.

Even if Foxconn did decide to open a plant in America, there are no guarantees that Apple products would be made there. But if Foxconn came to town, the Mac maker would no longer have any excuses to avoid domestic production.

By coming to America, Foxconn would also send a powerful message to other local companies that produce their products overseas. If a Taiwanese manufacturing firm can set up shop in the U.S., why can't they do the same?

Follow me @LouisBedigianBZ

More from Benzinga
Nov 9, 2012 3:46PM

Do not be surprised. Do not be surprised of all. Many predictions, in twenty years, have Taiwan, like Switzerland today, outperforming the US. 

Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125 rated 1
264 rated 2
485 rated 3
679 rated 4
640 rated 5
617 rated 6
632 rated 7
493 rated 8
276 rated 9
153 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.