Foxconn announced plans to build a new plant in Wisconsin worth around $10 billion. This new plant will be used to manufacture LCD display panel screens, says the company.
The Taiwanese electronics manufacturer is a major supplier to Applec Inc. This will be seen as a major victory to the Trump administration in its efforts to provide more jobs in America. Donald Trump praised Terry Gou, the chairman for Foxconn, while also firmly iterating how he being president of USA has brought about this decision.
Wisconsin governor, Scott Walker announced an award of $3 billion as incentives and also mentioned that a MoU will be signed. If the state legislature approves, half of this amount is meant for capital costs while the other half for workforce development and there would be some sales tax exemptions too, he said.
If Foxconn does fulfil its promise, it would be Wisconsin’s largest economic development project and would also award tax incentives for over 20 years, officials say. Though this is a major development, the company has mixed history in following up with promises on large scale job creation.
Even in 2013, Foxconn announced an investment of $30 million and hiring 500 workers in a new factory at Pennsylvania. But this never came to fruition. This is questioned by Wisconsin state Senator Jennifer Shilling. He asks if there is an appetite to approve a corporate welfare package of $1-$3 billion. He also expressed concerns over the company making big announcements and not following them up.