Companies
Foxconn mulls $7b display plant in US
Foxconn, the world’s largest contract electronics maker, is considering setting up a display-making plant in the United States in an investment that would exceed $7 billion, company Chairman and CEO Terry Gou said on Sunday.
The plans come after US President Donald Trump pledged to put “America First” in his inauguration speech on Friday, prompting Gou to warn about the rise of protectionism and a trend for politics to underpin economic development.
Foxconn’s proposal to build a display plant, which would be planned with its Sharp Corp unit, depends on many factors, such as investment conditions, that would have to be negotiated at the US state and federal levels, Gou told reporters on the sidelines of a company event.
Gou said that Foxconn, formally known as Hon Hai Precision Industry Co, had been considering such a move for years, but the issue came up when Foxconn business partner Masayoshi Son, head of Japan’s SoftBank Group Corp, talked to Gou before a December meeting Son had with Trump.
As a result of the meeting, Son pledged $50 billion in investment in the United States and inadvertently disclosed information showing Foxconn’s logo and an unspecified additional $7 billion investment. At the time, Foxconn issued a brief statement saying it was in preliminary discussions to expand its US operations, without elaborating.
“Son is a good friend,” Gou said, adding that Son had asked for his views about investing in the US.
Gou said he told Son that the US has no panel-making industry, but it is the second-largest market for televisions. An investment for a display plant would exceed $7 billion and could create about 30,000 to 50,000 jobs, Gou told Son.
“I thought it was a private conversation, but then the next morning, it was exposed,” Gou said. “There is such a plan, but it is not a promise. It is a wish.”
Foxconn has existing cooperation and operations in Pennsylvania, which is a state Foxconn would prioritize,…
China
Government subsidies don’t boost Chinese firms’ productivity
China’s industrial subsidies have caused considerable controversy both internationally and domestically. Trading partners have accused China of unfairly favouring its indigenous firms with subsidies, leaving foreign companies at a disadvantage in the race to lead the technologies of the future.
Governments around the world regularly spend an enormous amount of money subsidising businesses. But few spend like China. A 2022 report suggests that China spends 1.7–5 per cent of its GDP on industrial policies, more than most countries.
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Chinese Smartphone Manufacturer Lays Off 3,000 Employees Following Closure of Chip Design Division
OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).
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Company Owned by Chinese Billionaire Guilty of Paying $1 Million in Bribes to LA Councilman
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
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