Foxconn plans $7bn investment in US
Foxconn considering a huge investment with Apple for display facility in the US Getty Images

Foxconn is considering an investment of $7 billion (£5.6bn) with Apple to set up a display facility in the US, company's chairman Terry Gou has reportedly confirmed. The plant is expected to create about 30,000 to 50,000 jobs in the country.

"Apple is willing to invest in the facility together because they need the [panels] as well," Gou has been quoted saying so after its annual party in Nankang, Taipei, reports Nikkei Asian Review.

Gou said the increase in demand for larger display panels is the main reason for local production. Along with the display facility, Foxconn is also planning for a new molding facility in the US, possibly in Pennsylvania.

Gou said Smart Technologies, a Foxconn-controlled display startup in Canada, might move south of the border.

"In the future they may be paying some $500 more for [U.S.] products, but those do not necessarily work better than a $300 phone," he said, after urging the US authorities to provide concessions on land and electricity for the display facility.

Foxconn focus in mainland China

Despite a huge investment in the US, China remains a key market and a major manufacturing base for Apple and Foxconn.

"Yes, we will continue to add to our investments in China. China is the world's biggest market, and why should we turn down the biggest market?" added Gou.

He is quite optimistic to increase Sharp's market share with the next round of investment in China, at the same time expand its presence in Japan and Southeast Asia.

Foxconn manufactures more than 100 million of handsets for Apple in a year at the central Chinese city Zhengzhou.

Taiwan and Hong Kong alone contributed about 19% of Apple's total revenue for the quarter that ended in September 2016. The California-based company accounted for over 50% of Foxconn's sales.

Foxconn is working on several projects in China, including a new facility next to Apple's upcoming research and development centre in the Shenzhen.

Besides, Foxconn and Sharp are planning to build a facility in Zhengzhou to manufacture OLED panels for the future iPhones. Foxconn is also reported to work with Softbank Group to create a chip design centre in Shenzhen.