SHENZHEN – US manufacturers may encounter obstacles if they plan to return their operations to the US, Foxconn's CEO and chairman asserted, according to published reports.

Terry Gou said financial incentives are the key to selecting the best location for a factory.

Foxconn, the largest private employer in China, has been linked to plans to open an LCD panel factory under its Sharp brand in Pennsylvania. Gou declined comment, saying only that talks are still underway.

However, the director of the finance and modern industry research center at China Development Institute reportedly downplayed the notion Foxconn would move anytime soon. US costs remain higher than China's, Liu Guohong noted, the report said.