Foxconn, which is Apple's biggest contract manufacturer, is planning to build a new manufacturing facility in Pennsylvania as part of its $40 million investment plan.
Foxconn (also known as Hon Hai Precision Industry Co.) and already has operation in the U.S. Out of the $40 million investment the company is expected to spend $30 million in the next two years in Harrisburg, Pennsylvania, to build a factory that will likely assemble telecommunications equipment components and Internet servers. The remaining $10 million is meant to be invested in research and development at the Carnegie Mellon University in Pittsburgh, Pennsylvania.
The new manufacturing unit at Harrisburg is estimated to create over 500 jobs, which will expand the company's current manufacturing facility in Harrisburg that presently employs just 30 employees.
"Hon Hai wants to put its dream into action," Terry Gou, founder and chairman of Foxconn, said in a statement. "We'll go from original component R&D through to a complete high-end production chain."
"However this is not, as assumed, manufacturing for a specific brand," Gou said, indicating that Apple is not involved in this investment plan.
Foxconn has more than 1.6 million workers globally, which also includes its factories in Texas and California. Besides Apple, Foxconn is also manufacturing for HP, Samsung, Microsoft and Dell.
The Taiwanese company also makes products for various Chinese companies but confirmed that it will not migrate Chinese production lines in the U.S.
Foxconn's announcement comes at a time when technology companies are keen on establishing their manufacturing units near their product designers to ensure strict quality control. An example is Motorola, which took the deicison to move its final assembly line of Moto X to the U.S. According to Motorola, the move enabled quick turnaround time and direct fulfilment for customized, built-to-order handsets.
Apple has also confirmed that its next-generation, high-end Mac Pro will be made entirely within the U.S.
