Korea's Antitrust Agency Hits Qualcomm with Record $865 Million Fine for Excessive Licensing Fees to Phone Makers
TSMC Refutes DigiTimes Report that their 10nm is Experiencing Yield Problems for Apple's iPad Pro

The False Narrative that Apple's Supply Chain in Taiwan won't move to the U.S. under any Circumstances

1af l88


Earlier this month we reported that Softbank made a pitch to President-Elect Trump to invest $50 billion in the U.S. to create 50,000 new tech jobs with Foxconn playing a role in this investment. Foxconn confirmed the very next day that they are in fact in preliminary discussions to expand its operations in the U.S. which supports our November report wherein we noted that Apple's CEO had Foxconn investigate opening a plant in the U.S. back in June of this year.


Today, Taiwan based DigiTimes has posted a report that provides its readers with somewhat of a false narrative stating that if Apple shifts production from China to the U.S. that most china-based supply chain makers won't go to the U.S. for a host of reasons.


It's a false narrative because no one ever said that Apple would not continue manufacturing in China in favor of the U.S. Apple could easily have some manufacturing in the U.S while continuing it's relationship with Foxconn and their supply Chain in China. Apple could add Indonesia sales to Foxconn and future emerging markets or split manufacturing geographically. I've never heard it was ever an either or scenario.


Foxconn has been trying to expand their relationship with Apple forever and they'll be able to find other supply chain players to come to the U.S. and where they can't find suppliers of some kind they'll work with U.S. entrepreneurs and businesses to fill the gap, if not open a new division of their own.


Foxconn's founder and Chairman Terry Gou loves a challenge and opportunities to pounce on. There's no problem on that front to be sure. This guy is like the late Steve Jobs, he could sell ice cubes to Eskimos. 


Though at the end of the day what the DigiTimes report does go to show us is the raw fear that the supply chain in Taiwan is having over the possibility of losing a ton of business to the U.S. and fear of change in general.


Some Asian companies are up to the task while some smaller suppliers can't see anything beyond their local market. That has nothing to do with the reality of a Foxconn plant coming to the U.S. Business is business and many will line up to fill the gaps that are needed to make iPhones or any Apple products in the U.S.


10.1 Bar - NewsAbout Making Comments on our Site: Patently Apple reserves the right to post, dismiss or edit any comments. Those using abusive language or behavior will result in being blacklisted on Disqus.






The comments to this entry are closed.