Foxconn in America? Not So Fast.

Foxconn and the American Factory Dream: Are U.S. Manufacturing Jobs on the Table?

The contract manufacturing giant behind many of tech’s biggest names — including Apple — has stated that it has no current plans to expand its operations in North America.

So when headlines surfaced claiming that Foxconn was scouting U.S. locations for new manufacturing plants, it sparked immediate interest. In an economy still recovering from global disruptions and job losses, any hint of new factory jobs in the U.S. is bound to make waves.

The initial report, published by DigiTimes, suggested Foxconn was exploring potential sites for LCD TV production — not iPhones. While many were understandably skeptical, others saw this as a possible shift in direction for a company synonymous with overseas labor.

When pressed for clarity, a Foxconn spokesperson confirmed via email that the company “already has multiple facilities based in the U.S.” However, they added, “There are no current plans to expand our operations there at this time.”

Still, in manufacturing — as in politics — where there’s smoke, there’s often fire.

The Pressure to Reshore Is Growing

There are signs that Foxconn could be facing external pressure to localize a portion of its production — not necessarily for efficiency, but for optics. With strained U.S.-China trade relations and increasing scrutiny on global supply chains, the “Made in USA” label carries renewed weight.

Foxconn Chairman Terry Gou recently admitted the company is struggling to meet global iPhone demand. Expanding manufacturing capacity — even partially within the U.S. — could help relieve some of that pressure. And let’s be clear: for Apple, reshoring even a fraction of production would offer a significant public relations boost.

Detroit and Los Angeles in the Spotlight

According to DigiTimes, Foxconn may be considering Detroit and Los Angeles as possible U.S. expansion sites — both cities with historically high unemployment. At the time of the report, Detroit’s jobless rate stood at 18.1%, while Los Angeles hovered around 11.2%.

“If you want to make things in America, we know how to make things,” said Ned Staebler, a former executive with the Michigan Economic Development Corporation and now Vice President for Economic Development at Wayne State University.

Staebler also noted increased buzz within Michigan’s economic circles about a potential tech announcement. Whether those rumors relate to Foxconn or another major player remains unclear — though speculation points to a Detroit suburb potentially in play, possibly for a software-focused operation.

Can the U.S. Compete on Cost?

One unavoidable challenge to reshoring: labor costs.

Foxconn already operates a facility in Brazil, where wages are lower than in the United States but still higher than China. In China, an assembly-line worker typically earns around 2,500 RMB per month — about $400 USD. In contrast, the higher labor costs in the U.S. would significantly impact pricing models. Analysts estimate that shifting iPhone production to America could add $65 to $100 to the cost of each unit.

“It would be a positive if Apple made at least some percentage of their products in the U.S., and I would like to see them do that,” said Scott Nova, Executive Director of the Worker Rights Consortium in Washington, D.C. “But it would be a huge leap from their current manufacturing policy. You cannot replicate Chinese working conditions in L.A.”

Labor Standards, Unionization, and the Reality Check

Beyond cost, there are compliance and regulatory hurdles to consider. Foxconn has long been criticized for its labor practices in China — criticism that has sparked global concern about worker conditions and ethics in supply chains.

Building a plant in the U.S. wouldn’t just mean higher wages; it would mean meeting stricter labor standards, ensuring workplace safety, and likely facing unionization efforts — all of which cut into margins on low-cost, high-volume electronics assembly.

That begs the question: are these even the types of jobs America wants to bring back?

Low-Wage Jobs vs. High-Tech Futures

During a 2012 presidential debate, President Barack Obama referenced a dinner conversation with the late Steve Jobs. Jobs reportedly told him, “There are some jobs that are not going to come back, because they’re low-wage, low-skill jobs.”

The reality is this: while reshoring is essential for national resilience, not all jobs lost to offshoring are strategic to reclaim. America should focus on attracting high-value manufacturing — sectors where automation, innovation, and competitive labor standards can coexist.

Why It Matters to the Made in America Movement

The Made in America Movement continues to advocate for reshoring U.S. manufacturing, creating good-paying jobs, and rebuilding domestic supply chains. While companies like Foxconn may not yet be ready to bring large-scale tech manufacturing back to the U.S., increasing pressure from consumers, policymakers, and watchdogs is shifting the conversation.

As the global economy recalibrates and as supply chain risks intensify, more companies may be forced to consider what once seemed unthinkable: bringing manufacturing home — even if just in part.

The road to rebuilding American manufacturing won’t be paved in overnight decisions, but in strategic investments, smart policies, and informed consumers.

To be continued…