Technology manufacturer Foxconn broke ground on its first U.S. factory in Mount Pleasant, Wisconsin on Thursday, complete with President Donald Trump, House Speaker Paul Ryan and others in attendance for the occasion.
President Trump stated that the factory will provide jobs for “up to 15,000 Wisconsin Workers,” although reports have indicated the number will be 13,000. Foxconn is headquartered in Taiwan but operates most of its manufacturing in mainland China, Apple being a critical client thanks to products like iPhones and Macs.
The $10 billion factory is currently slated to produce LCD panels for TVs, but has been rumored as turning to iPhone and Mac panels in an attempt to cut costs. At the same time, any panels produced in the U.S. would have to be shipped overseas for final product assembly, which might negate any cost benefits.
Apple has had some U.S. suppliers in the past, but has historically had little assembly done in the U.S. The most recent product to be built in the country was the 2013 edition of the Mac Pro, now largely considered outdated.
The factory is expected to help with iPhone production by expanding into OLED production, as the company is expected to ship both 5.8-inch and 6.5-inch iPhones later this year. A 6.1-inch LCD product is also predicted, and may even become the most popular, but Apple will likely transition to OLED iPhones completely within the next couple of years.
Local governments had reportedly offered substantial taxpayer-based incentives to attract Foxconn to their regions, including $2.85 billion in income tax credits, $150 million in sales tax exemptions, and $764 million in incentives from Mount Pleasant and Racine County. The state of Wisconsin has pledged $134 million to improve nearby roads.
Stay tuned for additional details as they become available.
Via AppleInsider