Economy

Foxconn says it will build plant in Wisconsin after talk with Trump

Foxconn says it will build plant in Wisconsin after talk with Trump”

The company is moving forward with plans for both a manufacturing facility and a high-tech innovation hub.

But Foxconn announced Friday that it would be pursuing an LCD factory in Wisconsin, after all.

The news is embarrassing for the Trump administration, which had hailed Foxconn's investment in Mount Pleasant as an early success for its brand of economic nationalism, with Trump describing it as "the eighth wonder of the world".

The surprise announcement followed heavy backlash in Wisconsin, which in 2017 agreed to pay the prominent electronics maker and supplier to Apple at least $3 billion in state tax incentives. Residents' opposition, labor shortage, and technology transfer difficulties are the three main reasons why manufacturing companies like Foxconn could not move back to the United States easily, industry insiders and analysts have said.

Trump tweeted that it was "great news" for Wisconsin.

January 18, 2019: Foxconn finished 2018 with 178 full-time employees in Wisconsin, 82 workers short of the minimum required to claim job-creation tax credits.

Foxconn Technology Group said Friday it will go ahead with plans to manufacture liquid-crystal displays in Wisconsin after an intervention from President Donald Trump.

On June 29, 2018, Trump boasted on Twitter, "The new plant being built by Foxconn in Wisconsin is incredible".

Advocate Aurora unveiled plans to build a hospital, medical office building and two clinics in the region in May 2018, about eight months after Foxconn chose to build its plant in the area.

Some in the state have blamed Evers for the alleged shifting of Foxconn's plan.

"Terry is a friend of mine, and I recommended Wisconsin [to him]", Trump said at a groundbreaking ceremony for Foxconn's Wisconsin campus previous year.

Speaking to thousands of Foxconn employees at a Lunar New Year celebration in Taipei yesterday, Gou said investing in the U.S. "is undoubtedly a right decision and fits with future economic trends". President Donald Trump and former Wisconsin Gov. Scott Walker had claimed that the Foxconn deal would bring thousands of new manufacturing jobs to Wisconsin, but Foxconn's Louis Woo (a special assistant to Foxconn CEO Terry Gou) told Reuters that instead, the new facility would offer mostly white-collar research, tech and engineering jobs.

Foxconn says it will be an advanced manufacturing facility and the hub of its project in Wisconsin.

Tony Evers told reporters in the state Capitol: "I'm comfortable that they're still committed to the state, they're still committed to this Generation 6 technology, but that doesn't mean we won't continue to encourage them to be more transparent and more consistent".

Other costs to taxpayers are harder to quantify, said Steven Deller, an economist at University of Wisconsin-Madison.



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