Terry Gou: Will invest in U.S. investment in the future

On July 27th, U.S. President Donald Trump and Terry Gou, Chairman of Foxconn Group, announced plans to invest $10 billion over the next four years to build liquid crystal display (LCD) factories in Wisconsin. Trump seemed enthusiastic at the press conference, expressing gratitude towards Gou. However, Foxconn's decision to invest in the U.S. sparked heated debates in the market, quickly drawing further attention from Trump. Just five days later, on August 2nd, Trump stated that Foxconn would invest $10 billion to construct factories in the U.S., potentially marking the beginning of a larger commitment. Foxconn Group President Terry Goh reportedly considered increasing the U.S. investment to $30 billion. As the world's largest contract manufacturer, Foxconn's moves have significant implications for the global supply chain, prompting questions about its future investments in the U.S., potential reductions in China, and the specific locations and industries involved. On August 5th, a reporter from the Securities Times interviewed Gou, addressing these concerns directly. Gou confirmed discussions with other U.S. states besides Wisconsin, particularly regarding advancements in driverless technology. During a meeting with Michigan Governor Rick Snyder, Gou expressed optimism about collaborating with Michigan on next-generation automotive technologies like networking and autonomous driving. Snyder emphasized that Michigan’s strength lies in both manufacturing and high-tech innovation, making it an ideal partner for Foxconn. Gou explained that while labor costs in the U.S. are higher, the quality of the workforce aligns with Foxconn’s focus on skilled personnel. He highlighted Foxconn’s strategic investments in advanced fields such as cloud computing and automation, emphasizing the importance of leveraging American technology and talent. Despite speculation about shifts in manufacturing costs, Gou insisted that Foxconn’s investments in both China and the U.S. would continue to grow, driven by market demands and technological opportunities. When asked about potential changes in Foxconn’s supply chain, Gou avoided specifics but noted that the company aims to optimize resources globally. He reiterated Foxconn’s commitment to strengthening partnerships in both countries, ensuring continued growth in the tech sector. Regarding Apple’s supply chain, Gou maintained that decisions are made based on maximizing efficiency and leveraging regional strengths. The interview also addressed concerns among companies like Han’s Laser, which supplies equipment to Apple’s supply chain. Their representative assured that regardless of Foxconn’s location, their solutions would remain essential, dismissing fears of reduced business impact. Overall, Foxconn’s expansion into the U.S. reflects broader trends in global manufacturing and technological innovation. While challenges exist, Gou remains confident in the company’s ability to adapt and thrive in diverse markets.

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