Archive for November 2013

Foxconn Selects Central Pa. For High-Tech Plant

November 24, 2013

It’s long been known in site selection circles that Foxconn Technology Group has been looking for a community in the United States in which to locate a new manufacturing facility. Details as to which areas were being evaluated have been known to only a select group of economic development officials.

Now we know. Yesterday Foxconn announced it will invest $30 million in Pennsylvania for a plant to manufacture electronic components. About 500 jobs will be created in a facility expected to be in or near Harrisburg.

Company Chairman Terry Gou said about the new facility: “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…. We won’t be migrating Chinese production lines, but creating high-precision, high-tech, high value-added manufacturing in the U.S for future technology trends.”

According to the Economic Development BlogGou reportedly met with Gov. Tom Corbett “before deciding on selecting the state for the investment and signing an MOU with Pennsylvania for the project. FoxConn is not asking for any state incentives.” [Emphasis added.]

The Harrisburg Patriot-News cautioned, “It was not immediately clear whether Foxconn will be the company behind the proposed investment of a Apple repair facility near Carlisle.”

The announcement included good news for the western part of the state. Foxconn will invest $10 million in research and development at Carnegie Mellon University.  According to a Pittsburgh Business Times story, the university will be working with Pennsylvania and Foxconn “on a research initiative to bring high-tech manufacturing jobs to the state [and] work with Foxconn to integrate robotics and advanced manufacturing techniques into the company’s manufacturing process.

The company, bowing to pressure to manufacture more of its products in the United States, is believed to have additional domestic locations under study.

Foxconn is the commonly known trade name for Hon Hai Precision Industry, which is based in Taiwan and is the world’s largest contract electronics manufacturer. It’s customers include Apple, Cisco, Dell, Nokia and Sony. Foxconn Electronics currently has an operation in Harrisburg with 30 employees.

Joseph Vranich of Spectrum Location Solutions helps companies find great locations in which to grow. Joe also is a keynote speaker on the challenges and benefits of business owners relocating out of high-tax, high-cost, over-regulated states. More information is available at Biography and Speaking Availability.