) chief manufacturer, Foxconn, is interested in building a
facility in the United States. According to
, the Taiwanese manufacturer "reportedly plans to establish
manufacturing plants in the US and is currently conducting
evaluations in cities such as Detroit and Los Angeles, according
to market watchers."
"Since the manufacturing of Apple's products is rather
complicated, the market watchers expect the rumored plants to
focus on LCD TV production, which can be highly automated and
easier," the report claimed.
While this report has yet to be confirmed, domestic TV
production is not out of the question. One small firm, Element
in the United States last March. The components are made in China
but the final TVs are assembled locally.
In recent years, some companies have manufactured TVs in the
United States to avoid the headaches associated with making them
in China. Unlike small gadgets, which can be packaged safely and
shipped cheaply, TVs are large and awkward devices that are
difficult to transport. Wages may be lower in China, but the
other expenses are hard to justify.
Most iPhone and iPad components are made in China and South
Korea, but some are produced locally. For example, Corning (NYSE:
) makes the iPad display glass in America. Since iPads are
assembled in China, the company is forced to ship its glass
across the world -- at Apple's expense.
Corning is not the only Apple supplier that manufactures items
in the United States; Intel (NASDAQ:
) does the same. Samsung, Apple's leading adversary, produces a
small number of components in America. While the iPhone maker is
distance itself from
its South Korean competitor, Apple is still a Samsung
In May, Apple CEO Tim Cook said that he wanted to see
in America. He did not provide any hints or details explaining
how his or other companies could make this happen, but his words
may have been a clue regarding Foxconn's plans.
Even if Foxconn did decide to open a plant in America, there
are no guarantees that Apple products would be made there. But if
Foxconn came to town, the Mac maker would no longer have any
excuses to avoid domestic production.
By coming to America, Foxconn would also send a powerful
message to other local companies that produce their products
overseas. If a Taiwanese manufacturing firm can set up shop in
the United States, why can't they do the same?
(c) 2012 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.