Foxconn Chairman Terry Gou shakes hands with US President Donald Trump during a White House event on Wednesday. Photo: Reuters/Jonathan Ernst

Taiwan-based manufacturing giant Foxconn’s US$10 billion investment in a Wisconsin factory to make liquid-crystal displays (LCDs) is not a business-savvy decision and is unlikely to have a major impact on its strategy in China, analysts told the Beijing-based Caixin news website on Thursday.

Other analysts pointed out that, in addition to higher labor costs, insufficient locally available supply chain and infrastructure facilities related to LCD panel production will weigh on profits.

But it is certainly a welcome development for the US administration. “I think (Foxconn CEO Terry) Gou actually intends to create an optimal situation for negotiations (with the Chinese and US governments), Taipei-based analyst with market research firm Gartner Claire Wen said.

Source: Donald Trump Twitter account

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