President Donald Trump’s business acumen has been an enormous part of the phenomenon known as “The Trump Effect”, and another manufacturer is feeling it.
While companies such as Ford and Chrysler have previously reinvested in the American workforce, many higher end tech companies have been reluctant to jump onboard. This could be due to the overwhelming perception of a more highly skilled workforce in Asia, particularly as it pertains to cutting edge technology manufacturing. This opinion is certainly nothing more than a stereotype, as high-end electronics manufacturer Samsung realizes, causing them to shift some of their focus back to the United States’ workforce accordingly.
The company is in early talks to open a new home appliance making facility in the U.S., a Samsung spokesperson said on Wednesday, adding that Samsung began reviewing manufacturing operations ‘early last fall’. Samsung declined to comment on whether it would move manufacturing from Mexico.
The South Korean company’s move comes amid criticism from U.S. President Donald Trump about companies manufacturing abroad for U.S. consumers.
The U.S. administration has threatened an import tax, while Trump has attacked some of the world’s biggest companies, triggering many to make promises to invest more in the United States.
Samsung’s move also follows a similar investment from rival LG Electronics Inc (066570.KS), which last month said it would spend $250 million to build a new home appliance factory in the United States.
Samsung isn’t the first tech corporation to react to President Trump’s pressure to bring jobs back to the U.S., as LG Electronics has also expressed an interest, but it marks an enormous milestone for the administration. Samsung is the only real competitor to the Apple iPhone-dominated cellular telephone market. With Apple coming under increased scrutiny for their manufacturing processes in China, and the abnormally high suicide rate at those factories, not only will Samsung be able to claim that they are making more of their products within the United States, they will also be able to tout this move as a humanitarian victory for the entire electronics market.