Sorry Utica, Foxconn Isn't Conning There

摘要

Or Broome County, NY. Or Harrisburg, PA. Despite repeated media reports of an impending Foxconn migration, the company will remain what is has been since its founding in 1974: Chinese. Sure, there will be satellites in key spots elsewhere: Juarez. San Jose. Sao Paolo. If Foxconn were to come to the US, it would buck not just every single manufacturing trend, but outright common sense. Here are three quick reasons: 1. Incentives. Foxconn routinely holds out for hefty discounts on taxes, favorable access to land and other concessions. (See India, Malaysia, Indonesia, Vietnam, etc.) Given the higher cost of land acquisition, building codes, labor costs and taxes, among other things, Foxconn would certainly insist on favorable treatment. Even if it were to get it - an unlikely proposition - how would that play with Americans if a Chinese company were to be given such breaks? Such a backlash has already begun in India, by the way.