Apple Supplier Says U.S. Workers Are too Unskilled for Production

Foxconn chairman Terry Gou recently voiced concerns about manufacturing Apple components within the U.S.

Last week, during a groundbreaking ceremony for a new production facility in China, Gou revealed that he had recently returned from a trip to Washington, D.C., Nikkei Asian Review reported. Gou did not, however, comment on whether he met with Trump administration officials. During the ceremony, Gou raised uncertainties about whether the U.S. was capable of getting enough foreign investor interest in a short timeframe.

“I am concerned as to whether the U.S. can resolve all the investment issues in only a few months’ time,” Gou said. “Does the U.S. offer incentive programs for foreign investors? They’ll need to pass bills first, and we’ll need to wait for American authorities to make a decision first.”

Additionally, Gou said that the U.S. currently lacks the skilled labor and supply chains necessary for a display panel manufacturing plant — the kind of facility that Foxconn is looking to build within U.S. borders. These downfalls, especially when compared to the existing Chinese manufacturing industry and infrastructure, would disadvantage the U.S. when looking to attract foreign investors, Gou said. Foreign investments would be an essential component of making U.S.-based manufacturing a reality.

President Donald Trump has — on several occasions both before and after the election — stated that he wants Apple and other tech giants to start manufacturing their devices within the U.S. Chairman Gou suggested on Thursday that, if Trump wants U.S. manufacturing to become a possibility, he should be willing to offer incentives and tax breaks to companies wanting to make the move, Business Insider reported.

A separate report last month revealed that Apple and Foxconn were considering a partnership to develop a $7 billion display panel production facility within the U.S. Such as facility would have the potential to create anywhere between 30,000 and 50,000 new jobs, Gou told the publication.

Ultimately, Gou refrained from siding with either nation, citing that he doesn’t want to see a “trade war happen” between China and the United States. “I am not willing to choose between [them], why should I give up on any market?” Gou told reporters.

“It is in the interest of the entire humanity that China and the U.S., top two economies in the world, can get along peacefully,” Gou said. “They are in the process of gambling with each other, and I can foresee that the two will eventually work together to grow [their] economies and deliver beneficial outcome for many. If they don’t, then everyone will be losers.”