Electronics workbench with small smartphone parts in trays, tweezers and a magnifier lamp

Motorola’s 2013 attempt to assemble smartphones in Fort Worth, Texas, failed largely because of costs and the difficulty of training and keeping workers, former Motorola CEO Dennis Woodside told CNN in an interview published August 4, 2025.

What happened with the Moto X

Motorola, then owned by Google, assembled its flagship Moto X in Texas and marketed it as made in the USA. Local assembly let customers customize colors online. At its peak the plant assembled roughly 100,000 phones a week, Woodside said. But key components such as the battery, screen and motherboard came from suppliers in Asia, and the phone did not sell well enough. Motorola confirmed in May 2014 that it would close the factory.

“There definitely were higher costs, which was challenging. And you are dealing with a supply chain that’s very fragmented.”

Dennis Woodside, former CEO of Motorola, to CNN

Woodside said the hardest part was the workforce. Phones contain several hundred tiny parts, and most new hires had never done that kind of work. Workers also had other options in retail and food service, so retaining them was hard. His advice to companies trying again: offer employees a strong value proposition, use automation thoughtfully and be sure the economics are price competitive.

Why it matters for Made in USA

The story comes as the White House presses Apple and Samsung to build phones in the USA. Motorola’s experience shows that final assembly alone does not create a domestic supply chain when the major components are still imported.

It also shows a labeling point. A phone assembled in Texas from mostly imported parts would not meet the FTC’s “all or virtually all” standard for an unqualified Made in USA claim. A claim such as “Assembled in USA” with foreign components is more accurate. Brands that want the unqualified label need domestic suppliers for the major parts, not just a domestic assembly line.

FAQ

Where did Motorola build the Moto X?

In Fort Worth, Texas, starting in 2013. Motorola announced the plant’s closure in May 2014.

Were Moto X parts made in the USA?

No. Woodside said the battery, screen and motherboard came from suppliers in Asia.

What was the biggest challenge?

Training and keeping skilled workers for detailed assembly work, along with higher costs.

Source & credit

Originally reported by CNN (Lisa Eadicicco) on August 4, 2025: He tried building smartphones in the US over a decade ago. He has advice for companies trying it today