Foxconn’s Wisconsin deal, advertised by Trump, shrinks from 13,000 to 1,454
© Reuters. FILE PHOTO: Building the Foxconn manufacturing complex in Mt. Pleasant
(Corrects the first paragraph to show that the $ 10 billion plan came from Hon Hai Precision, not Foxconn Technology Co Ltd.)
By David Shepardson and Karen Pierog
WASHINGTON (Reuters) – Taiwan contract electronics maker Foxconn will drastically reduce its proposed investment in an originally planned $ 10 billion facility in Wisconsin, according to an agreement announced Tuesday with the state.
The investment was first announced at the White House in July 2017 when Donald Trump was President.
Wisconsin will reduce its project-approved tax credits from $ 2.85 billion to $ 80 million as Foxconn cuts its planned investments from $ 10 billion to $ 672 million and cuts the number of planned jobs from 13,000 to 1,454 Wisconsin governor Tony Evers said in a statement.
The 20 million square foot campus was the largest investment in US history for a brand new overseas company location when it was announced. It has been hailed by Trump as evidence of its ability to revive American manufacturing.
Foxconn, officially Hon Hai Precision Industry Co. Ltd. called, said the agreement provides “flexibility to pursue business opportunities in response to changing global market conditions”. The company said “the original projections used during negotiations in 2017 changed at that point due to unexpected market fluctuations.”
Foxconn initially planned to use the facility under construction to manufacture advanced large-screen displays for televisions and other consumer and professional products.
It was later said to build smaller Generation 6 LCD screens instead, and Trump stopped discussing Foxconn’s investment while traveling to Wisconsin.
Foxconn said Tuesday it plans to make Wisconsin “one of the – if not – largest manufacturers of data infrastructure hardware in the US.” The company did not immediately respond to a Reuters query asking for more details about the construction.
Evers said the new agreement, negotiated between Wisconsin Economic Development Corporation and Foxconn, will save Wisconsin taxpayers “a total of $ 2.77 billion over the previous deal, maintaining accountability measures that require job creation to get incentives and protect hundreds of millions of dollars locally and in the US. ” government infrastructure investment in support of the project. “
Evers said Foxconn can receive up to $ 80 million in performance tax credits over six years if its employment and capital investment goals are met.
The original Wisconsin package also included local tax incentives and state and municipal road and highway investments, bringing taxpayer-funded subsidies to more than $ 4 billion.
Foxconn noted that it has invested $ 900 million in Wisconsin since 2017, including several different facilities across the state.
(This story corrects the first paragraph to show that the $ 10 billion plan came from Hon Hai Precision, not Foxconn Technology Co Ltd.)
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