Foxconn extends footprint in Henan Province as US project shrinks

Taiwan region- based electronics giant Foxconn have kicked off operations of a brand new massive factory in Zhoukou, Central China’s Henan Province over the weekend, marking another extension for the company’s already huge presence in the Chinese mainland, in stark contrast to its troubled project in the US.

With a total investment of 1.5 billion yuan ($ 231 million), the project has two phases. The operation of the first phase started on Saturday – less than two months after Foxconn signed the deal with the local government in early March – the company said.

According to the Zhoukou government, once both phases are completed, the factory will offer about 30,000 jobs and the annual output will be more than 3.1 billion yuan.

Even as the company is expanding business in the Chinese mainland with impressive speed, its US project in the state of Wisconsin – a project that was hailed by former US president Donald Trump as a sign of the rebirth of American manufacturing – is facing hurdles.

The electronics factory in Wisconsin is not coming along as expected. Instead, the investment amount shrank to $ 672 million and the whole project will create fewer than 1,500 jobs, CNN reported.

“The Zhoukou factory showed the Chinese government’s efficiency and stable supply chains, while the cuts to the Wisconsin factory reflected several deep problems that exist in the US society, such as partisan battles and inadequate industrial chains,” Xiang Ligang, director general of the Beijingbased Information Consumption Alliance, told the Global Times on Sunday, adding such a massive project requires support in many factors.