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Asian Investment in United States Expected to Increase

Asian investment in the United States is expected to rise in response to several President Trump administration initiatives designed to increase jobs in the United States. A carrot and stick combination of tax incentives and border tariffs, plus tightened regulations regarding infringements, has caught the attention of Apple’s Asian suppliers, including TSMC and Foxconn.

Commitment to Investing in U.S. Production Plants

Recently, TSMC reaffirmed statements previously made by Chairman Morris Chang that it will likely build a new fabrication facility in the United States, possibly within the next year. Foxconn announced plans to build a $7 billion LCD plant, for starters. Currently, TSMC operates one facility in the U.S. Foxconn is the largest employer in China.

Jobs vs. Automation in New Fabs

Both Foxconn and TSMC rely heavily on automation, and in such facilities the demand for human labor is limited to specialists such as engineers, not assembly line workers. Nevertheless, somebody has to build the new factories, manufacture the equipment, deal with logistics, provide security and maintenance, and so on. Time will tell how much these likely investments will impact the US economy.

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