When Foxconn first announced it in 2017, then US President Donald Trump said that Foxconn’s plan to build a large electronics factory in Wisconsin marked the rebirth of American manufacturing. However, almost four years later, the Silicon Valley complex that was supposed to be built in the Midwestern Industrial Zone became a “white elephant”. This is a cluster of empty buildings without high-tech products.
This week it was officially announced that it would be meaningless to invest US$10 billion to create as many as 13,000 jobs. A Taiwanese electronics manufacturer of Wisconsin Economic Development Corporation signed a revised incentive agreement with a Taiwanese electronics manufacturer, stating that Foxconn’s US$672 million investment will create less than 1,500 new jobs. The stimulus package is now only $80 million, which is less than two-thirds of the nearly $3 billion in tax breaks and other benefits the state originally promised.
Governor Tony Evers said on Tuesday: “When I ran for governor, I promised to work with Foxconn to secure the largest deal for our state. The last deal is not good for Wisconsin, and neither do I. I think this is beneficial.” From the Democratic Party.
Evers defeated a lucrative stimulus package and made it one of the main topics of the 2018 campaign when he defeated the Republican and ally of then U.S. President Trump, Governor Scott Walker (Scott Walker).
For Foxconn, this new agreement is actually a step forward. After abandoning plans to produce flat-screen displays for TVs or other devices, Foxconn risked not receiving government subsidies at all. The initial deal was provided to Foxconn, which is known for producing Apple’s iPhone and Amazon’s Echo Dots in large factories in China. In addition to investment and employment, it can also produce state-of-the-art displays to comply with incentives.
Foxconn said that he is pleased that the new agreement “makes it like other manufacturers, able to achieve tax incentives based on job creation and capital investment, regardless of the types of products and commodities produced.” Foxconn stated that he pledged to invest US$672 million, which remains “one of the largest economic development projects in Wisconsin so far.”
In addition to Trump’s initial grand promise of the factory, the value of the incentives in the initial contract is that they have attracted great attention from the project.
Tim Bartik, senior economist at the WE Upjohn Employment Institute, said: “The reward for each job is more than US$200,000. For a new company, the reward for each job is usually about US$50,000. This new The transaction is roughly within this framework.” Non-partisan research think tank.
Foxconn has announced that it is considering a range of possible factory uses, including the use of artificial intelligence, semiconductors, 5G technology and electric vehicle parts to develop digital medical products and robotics. The company also stated that the plant may benefit from the management of US President Joe Biden to encourage domestic production of computer chips and batteries for electric vehicles.
In the early days of the pandemic, Foxconn produced masks and masks at a factory in Wisconsin. However, the company has not disclosed how many 1.4 million square feet of the three buildings currently occupy. He said these plans are based on “current forecasts of demand for digital infrastructure products by 2025,” but did not provide detailed information about these products. The company said it currently has hundreds of employees.
Evers did not immediately withdraw the state incentive plan after taking office as governor in early 2019. Part of the reason is that the Wisconsin Economic Development Corp., which approved the plan, is not under the direct control of the governor. But at the beginning of his term, Evers said it was unrealistic to expect to create 13,000 more jobs there, and the contract should be renegotiated.
Foxconn has always insisted on hiring all planned workers, but continues to change plans around the production plan. When Foxconn’s directors proposed in early 2019 that the company open a “technology center” in Wisconsin instead of the promised flat-panel display factory, Trump called Foxconn President Terry Gao, who quickly changed his mind and promised The company will stick to its original production plan.
Last fall, the Wisconsin Economic Development Corporation concluded that Foxconn was no longer planning to produce the promised flat-screen displays, and therefore concluded that Foxconn was not eligible for the initial incentive plan. CNN concluded that this decision paved the way for new negotiations and led to the signing of new contracts, which were greatly reduced.