Foxconn’s New $174M Kentucky Plant Likely Won’t Serve Apple
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Foxconn is building a $174 million plant in Louisville, Kentucky, but the new facility doesn’t appear to be destined for Apple’s supply chain, reports Mactrast.
Louisville Mayor Craig Greenberg and Kentucky Governor Andy Beshear have announced that Foxconn will be opening “its first U.S. manufacturing operation in Louisville.” The $174 million facility will potentially create 180 new jobs in the region.
“Louisville continues to emerge as the national leader in advanced manufacturing,” said Mayor Greenberg. “This investment is the result of strong collaboration among our state and local partners. We’re proud to welcome FTC-USA to Louisville and know this company will bring good-paying jobs, new opportunities, and lasting economic growth to our community. Louisville’s momentum is undeniable, and the world is taking notice.”
The new facility will include an already existing 350,000-square-foot warehouse, which will be located on Randy Coe Lane, on a 23-acre property. The facility will be refitted to serve as a factory. Permits shared by Louisville Business First reveal that the upgrades will cost Foxconn $62.5 million over two separate phases.
The first $10 million phase will lay new concrete foundations designed to handle the heavy manufacturing equipment to be used in the facility, as well as interior-only changes. Phase 2 is expected to cost an additional $52.5 million and will involve the final build-out, as well as installation of equipment to be used by the factory.
The facility is expected to start operations in the third quarter of 2026.
As you might expect, Foxconn, while footing the lion’s share of the total bill, will receive incentives from the state of Kentucky, including a 10-year incentive agreement with the Kentucky Economic Development Finance Authority which could see Foxconn receive as much as $3.4 million, alongside $600,000 in tax incentives.
“Kentucky’s long, successful history of working with international companies has led to billions in economic investment and countless job opportunities over the years,” said Gov. Beshear. “I want to thank FTC USA’s leadership for trusting in Kentucky to locate their first operation in the United States and for creating 180 new opportunities for our people. Together, we’ll see years of success in your New Kentucky Home.”
Is This for Apple? The Odds Are Low
The announcement doesn’t reveal what the factory will make. While manufacturing electronics is mentioned, no details are offered as to what type of electronics or who Foxconn will be partnered with.
While Apple likely springs to mind for many observers, as the Cupertino firm has a long relationship with Foxconn — and a penchant for secrecy — nothing really points to Apple as the partner. For one, the project lacks the size and investment that are earmarks for most Foxconn/Apple projects, meaning the scale of the plant’s production wouldn’t be sufficient for most Apple products. If it were Apple, we would also likely be hearing reports of other manufacturing partnerships in the area to meet the needs of Apple’s complex supply chain. So far, there has been no word about any such deals being made.
Apple may be the biggest of Foxconn’s clients, but it’s far from its only one. The company is estimated to manufacture roughly 40% of all consumer electronics sold worldwide, and it builds hardware for many other well-known companies like Google, Sony, Nintendo, and Microsoft. It’s also been rapidly ramping up production of AI servers, chips, and other infrastructure for firms like Nvidia and OpenAI.
The announcement mentions that the 350,000-square-foot facility will integrate AI and robotics into all phases of production — from design and assembly to logistics. This indicates that Apple isn’t likely involved, as the company doesn’t outsource its product design to its manufacturing partners.
While Apple is looking to get more US manufacturing geared up, this project seems a little “small time” for the company. You may remember the 2018 plan for Apple and Foxconn to build a new 20 million-square-foot manufacturing plant in Wisconsin, which was expected to create 13,000 jobs. Foxconn was expected to spend $10 billion on the facility. However, the project was scrapped in 2019.
