Foxconn announces $10 billion investment in Wisconsin

Nettie James
July 29, 2017

After several reports and Trump's tease earlier this week, Foxconn this evening officially announced its plan to build an LCD factory in Wisconsin.

The deal was made official Thursday with the signing of a memorandum of understanding that calls for Foxconn to invest $10 billion in Wisconsin and eventually create 13,000 jobs in exchange for $3 billion in tax credits. For Wisconsin's part, the governor says the state will invest $3 billion in economic incentives. "If I didn't get elected, he definitely would not be spending $10 billion", Trump said.

The new 20 million square-foot facility, which will make flat-screen displays, will be located in the congressional district of House Speaker Paul Ryan, a White House official told the AP, although declined to provide a specific location.

Wisconsin state Sen. Jennifer Shilling, a Democrat, questioned whether there is "legislative appetite for a $1 (billion) to $3 billion corporate welfare package".

"This shows actual results - getting it done", Ryan said.

Such a move by Apple would represent a major change in strategy for the world's most valuable company and boost the White House's long-held promise to return overseas factory jobs to America.

Foxconn has announced plans to build a massive facility in the United States, one that will include housing units, service businesses, stores and more. Various states in the running - including Michigan, Ohio and Pennsylvania - have been offering subsidies and other incentives to try to attract the investment. The Taiwanese giant will invest $10bn (£7.6bn) in the facility over the next three years, more than the initial investment of $7bn it had planned for USA manufacturing.

President Donald Trump's announcement Wednesday that Wisconsin had won the high-stakes fight to be home to Foxconn's first US manufacturing plant comes as Walker is preparing to run for a third term. Apple did not comment.

Trump also said Tuesday in a Wall Street Journal interview that Apple CEO Tim Cook "promised" him the company plans to build "three big plants, lovely plants" in the United States.

Foxconn grew into a powerhouse for electronics manufacturing for Apple, Microsoft, HP and others thanks to its ability to staff its factories with cheap labor in China. He said a lot of other states wanted Foxconn and put more money on the table, but Wisconsin's bid still won out.

Other reports by Insurance News

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