According to news agency Bloomberg, the move is expected to generate at least 500 jobs. Foxconn flagship company Hon Hai Precision Industry Co. will invest $30 million over two years to build a high-tech manufacturing facility for goods including components for telecommunications equipment and Internet servers, agency reports quoting Terry Gou, Founder-Chairman of Foxconn, said. The remaining amount will be used to fund research and development at Pittsburgh’s Carnegie Mellon University.
Foxconn is known throughout the US as the maker of some of the country’s popular consumer electronic devices with Apple as its largest client. It is also a major supplier to Hewlett-Packard Co. (HPQ). Totally, it employs around 1.6 million employees around the world including in California and Texas.
In fact, Foxconn’s move is part of a new movement these days, often referred to as InSourcing (as against Outsourcing), wherein technology companies outside the US are relocating manufacturing facilities to the U.S. because they want their product designers to be near the manufacturers in the interest of quality control.
Reacting to the Foxconn development, C. Alan Walker, State Secretary for the Department of Community and Economic Development said from Washington that his department was pleased that companies from overseas were looking to locate and grow in Pennsylvania.
Hon Hai’s net income for the third quarter rose 1.6 percent to NT$30.8 billion (approx. US$1 billion), beating analyst estimates, according to a recent filing by the company to the Taiwan Stock Exchange.
[Image Creidts: Foxconn]