As U.S. President-elect Donald Trump pushes to bring manufacturing and jobs back home, two of Asia’s biggest technology companies said they were looking to expand investment in the United States.

Apple Inc supplier Foxconn said it was in preliminary discussions to expand its U.S. operations and billionaire businessman Masayoshi Son, also the head of Japan’s SoftBank Group Corp, pledged a $50 billion investment in the United States.

A move the U.S. President-elect claimed was a direct result of his election win, his investment would create 50,000 new jobs, Son said after meeting Trump.

Speculation about merger talks with T-Mobile US Inc and U.S. telecoms giant Sprint Corp, 82 percent owned by SoftBank, that died under pressure from U.S. regulators  were spurned by the investment pledge.

But since Sprint is slashing staff numbers to cut more than $2 billion in costs this fiscal year, doubts on whether the promise of money and jobs will be met were prompted by the lack of details on the investment timetable.

The indications that Trump is leaning on the deal-making skills he honed in the boardroom were revealed by his moves since the election to engage with individual companies, while turning his back on broader, years-in-the-works trade deals.

Trump is expected to be more open to mergers than President Barack Obama as he campaigned against the over-regulation of business.

According to the Wall Street Journal, the $100 billion tech investment fund the head of SoftBank is setting up with Saudi Arabia’s sovereign-wealth fund and other potential partners would be the source of the $50 billion investment, announced jointly by Trump and Son in the lobby of the Trump Tower in Manhattan.

“Ladies and gentlemen, this is Masa from SoftBank of Japan, and he’s just agreed to invest $50 billion in the United States and 50,000 jobs,” Trump said.

“He would never do this had we (Trump) not won the election!” Trump later Tweeted.

Son also said he expected a lot of “deregulation” under a Trump administration.

A snapshot of a page held by Son outlining the investment carrying the logos of SoftBank and the Taiwanese firm, formally known as Hon Hai Precision Industry Co. were shown on television following which Son’s business partner Foxconn issued a brief statement.

The page also showed an additional $7 billion investment and creation of a further 50,000 jobs.

“While the scope of the potential investment has not been determined, we will announce the details of any plans following the completion of direct discussions between our leadership and the relevant US officials,” the Foxconn statement said.

Including launching humanoid Pepper – which is manufactured by Foxconn – into several markets, and investing jointly in India, Son and Foxconn founder Terry Gou are considered close and have several business ventures together.

According to its website, Foxconn has manufacturing facilities in the U.S. states of Virginia and Indiana. Its 2015 annual report also listed logistics services in California and Texas.

Saudi Arabia’s Public Investment Fund (PIF) could invest up to $45 billion over the next five years and would be the lead partner in the $100 billion tech fund, SoftBank said in October, prior to the U.S. Presidential election.

(Adapted from Reuters)

Categories: Economy & Finance