Foxconn to build screen factory in the US state of Wisconsin
The Taiwanese Foxconn is going to build a factory in Wisconsin for ten billion dollars, where the manufacturer will make LCD screens. The large factory of about 1.8 million square meters must eventually accommodate at least three thousand and possibly thirteen thousand employees.
US President Donald Trump announced the news at a press conference, which also included Foxconn chief executive Terry Gou. Trump suggested that the construction of a factory is due to his presidency. The factory is nowhere near the relocation of all activities to the US. In total, the Foxconn factories employ hundreds of thousands of people.
The state of Wisconsin will pass legislation that would allow Foxconn to receive up to $3 billion in tax breaks over a 20-year period, provided the company delivers on its new job promises and pays employees an average annual salary of $54,000. . Foxconn is considering multiple Wisconsin locations for plant construction; the final choice would follow shortly.
Foxconn said in a statement that this investment is the start of a series of investments in US factories in the coming years. In January, CEO Gou announced plans to build a factory for screens, which should create 30,000 to 50,000 jobs. Together with Apple, 6.5 billion would be invested in the construction.
It is unclear whether the construction of the LCD plant in Wisconsin is part of these plans. Wisconsin Democratic Senator Jennifer Shilling is critical of Foxconn. According to her, the company has said before that it will invest heavily in factories in the US, but then the Taiwanese company has not fulfilled the commitments. Shilling doubts whether there is enough political will in Wisconsin to provide Foxconn with a ‘corporate welfare package’ of up to three billion dollars.
On Tuesday, President Trump said in an interview that Apple CEO Tim Cook has promised him to build three major factories in the United States. He gave no further details about these plans; Apple declined to comment. These plans may look slightly different in practice, as Apple typically works with third parties to supply the parts, such as Foxconn. It is not clear whether Apple is co-investing in the construction of the new Wisconsin factory. The Taiwanese Foxconn is the manufacturer of Apple products such as the iPhone. Foxconn mainly produces in China.
Trump has repeatedly urged American manufacturers to move production to their own soil. To achieve this, Trump wants, among other things, to tax the import of products from China and Mexico high and to give companies in the US tax benefits. Gou said earlier that American protectionism is inevitable, but he also openly questioned whether the American public will support this, because it will lead to higher prices of products.