Last Wednesday, President Donald Trump welcomed Foxconn CEO, Terry Gou, and Wisconsin state representatives to unveil the Badger state’s plan to host a $10 billion project of the Taiwanese company.
The announcement ends weeks of speculation about the location of Foxconn’s newest plan for American manufacturing. Ohio and four other undisclosed states were also being considered.
Foxconn’s investment will benefit both federal and state incentives such as $3 billion in capital costs and workforce development from the state of Wisconsin and tax exemption incentives.
Foxconn, also known as Hon Hai Precision Industry Co. Ltd., said it will invest $10 billion in four years to build a 20 million square foot plant that will create up to 13,000 jobs.
But not everybody is happy about Foxconn’s promises. “The bottom line is this company has a concerning track record of big announcements with little follow-through,” said Wisconsin state Senator Jennifer Shilling (D), after she questioned if is really reasonable to have a $1 to $3 billion “corporate welfare package,” according to Reuters.
Other concerns are the past failures of Foxconn to deliver on their promises. In 2013, Foxconn announced an investment of $30 million and hire 500 workers for a new factory in Pennsylvania, but the infrastructure was never completed.
President Trump announcement that the Foxconn deal follows his declarations to The Wall Street Journal that Apple’s CEO, Tim Cook, has committed to three “big manufacturing plants” in the U.S., even though Apple has not commented yet on the subject. Foxconn is a major supplier for the Cupertino company.
Marco Islas for TechFunnel.com