Foxconn Announces $10 Billion Wisconsin Plant in Return for $3 Billion in Economic Incentives
Hinted during President Donald Trump's interview with the Wall Street Journal earlier this week, Foxconn has now officially announced to build its manufacturing plant in Wisconsin. The Taiwanese giant is receiving a $3 billion reward in incentives from the state and will build a $10 billion factory in southeastern Wisconsin.
"We are confident that making American products will be a great success. We are also committed to creating great jobs for the American people." Terry Gou
Foxconn chairman Terry Gou was joined by Trump when he made the announcement at the White House. White House has mentioned President's direct negotiations with Foxconn for its first major plant in the United States. The project is expected to create at least 3,000 jobs over a span of four years and represents a $10 billion investment according to the White House.
The plant doesn't seem to be one of the Apple's "promised three"
After yesterday's interview, it may appear like this is one of the three "big, beautiful" plants that Trump said Tim Cook has promised him, however, it looks unlikely. The new Foxconn plant is set to produce flat-panel display screens for televisions and other consumer electronics. The LCD panels will at first be produced for Sharp, which is owned by Foxconn's parent company.
They may eventually be used by Apple, but right now the Wisconsin project is an unlikely candidate to be one of the promised three. Remember that Foxconn is one of the world’s largest electronics manufacturers, building gadgets for Apple, Google and other tech leaders. It wouldn't be a surprise if eventually these plants do start producing parts for Apple products.
Will Foxconn actually build it?
"TV was invented in America," Gou said at the White House, noting that the LCD displays are no longer made here. "We are going to change that. It starts today in Wisconsin." Gou added that Foxconn is excited to build this new plant in "America's heartland," and also revealed that this is only the "first of a series" of such facilities that will be built in "several US states."
Trump, however, still seemed to be stuck in the campaign mode. "I’d see Terry and say, 'You’ve got to give us a couple of those massive places,'" he said. "If I didn’t get elected, he definitely wouldn’t be spending $10 billion."
"The American worker will not let you down," Trump promises Mr. Gou.
However, there are many on the skeptic side who believe this is all just hype and a sham. "I'll be excited about the Foxconn announcement when workers are getting paychecks in Wisconsin," Scott Paul, president of the Alliance for American Manufacturing, said. "Foxconn has a history of talking big and not necessarily delivering on their commitments."
Paul was referring to a $30 million investment in Pennsylvania that Foxconn had promised in 2013 but never built. The company has also broken similar promises with India and Indonesia in the past. However, as it's been repeated several times the incentives seem to be big for Foxconn under Trump's presidency. The question remains if Foxconn can change its notorious working conditions and start offering living wages.