Hot on the heels of Apple’s announcement to bring some of its Mac production to the US, Foxconn has also announced plans to expand operations into North America.
There are numerous advantages to having production and assembly based in China, the most obvious being the lower cost of labor. Another factor, however, is the proximity to other components in the supply chain. Having a large number of different components already being produced in the area has become an advantage for China as it just makes sense logistically for companies to partner with them for manufacturing.
Ironically, the fact that these products are being made in China is also the reason why Foxconn has decided to expand into the US. According to Louis Woo, a spokesman for Foxconn, “We are looking at doing more manufacturing in the U.S. because, in general, customers want more to be done there.”
A quick peek into the comments of any article about Apple’s decision to bring Mac production back to the US will guarantee at least a handful comments about how some people are finally comfortable with purchasing Apple products if they are made in the USA. It’s a big deal, to say the least and that probably factored into Foxconn’s decision to expand to North America.