Hon Hai considering investment in Michigan

Taipei--Taiwan-based manufacturing giant Hon Hai Precision Industry Co. (??) said it is studying the feasibility of investing in Michigan as part of its goal to expand production in the United States market.

In a statement released on Sunday, Hon Hai, also known internationally as Foxconn, said Michigan is one of the U.S. states it is looking at, following its decision last month to invest US$10 billion in Wisconsin to build an advanced flat panel plant.

The latest statement came after the China Securities Journal, China Daily and other Chinese media reported that Hon Hai was aiming to capitalize on Michigan's advantage in the automotive industry by building a research and development center there for self-driving technology.

In addition, U.S. President Donald Trump also said last week after a meeting with representatives of the U.S. small business sector that Hon Hai's investment in the U.S. market could swell to US$30 billion.

Hon Hai, the world's largest contract electronics maker and an assembler of iPhones and iPads for Apple Inc., said that it could not disclose any details of its planned investments in U.S. market, except to say that Michigan was one of the states it was looking at in terms of expansion.

On Aug. 5, Michigan Governor Rick Snyder visited Foxconn's Longhua plant in Shenzhen, China where he was briefed on its advanced production process and management of a large production workforce.

Prior to that, Snyder made a similar visit to Sharp Corp.'s plant in Osaka, in which Hon Hai holds a majority stake, according to the statement.

Hon Hai said it was pleased with Snyder's visit to Shenzhen as it has been keen to penetrate the global market, including the U.S., through the production of sophisticated high-tech gadgets.

Hon Hai is impressed by the Michigan state government's efforts to create a friendly investment environment to boost its economy and create jobs, according to the statement.

According to the Detroit Free Press, Snyder has signed a package of bills that will provide significant tax incentives for companies like Hon Hai. Hon Hai currently has a broad production network in China, which employs a workforce of about 1 million, and will continue to invest there, the China Securities Journal reported, citing Hon Hai Chairman Terry Gou (???).

The company is also extending its operations in India, embarking on a project to establish 10-12 facilities there by 2020.

Source: Focus Taiwan News Channel