Taiwanese electronics manufacturer Foxconn on Wednesday announced plans to build a US$10 billion LCD display panel screen plant in Wisconsin, Reuters reports.
The company said it plans to invest US$10 billion over four years to build a 20-million square foot plant that could eventually employ up to 13,000.
President Donald Trump praised Foxconn chairman Terry Gou at a White House event, asserting: “If I didn’t get elected, he definitely wouldn’t be spending US$10 billion … This is a great day for America.”
Wisconsin Gov. Scott Walker said at the White House his state will award US$3 billion in incentives and sign a memorandum of understanding on the investment on Thursday.
He told reporters the state legislature will need to approve the US$3 billion incentives package. About half is for capital costs and nearly half for workforce development. There are also some sales tax exemption incentives.
Foxconn, formally known as Hon Hai Precision Industry Co Ltd., said in a statement that the investment “signifies the start of a series of investments by Foxconn in American manufacturing in the coming years.”
But Foxconn has had a mixed record following up on promises to create new jobs in the United States.
In 2013, Foxconn said it would invest US$30 million and hire 500 workers for a new factory in Pennsylvania, but that facility was never completed. Foxconn has another small operation in Pennsylvania.
Foxconn, a major supplier to Apple Inc. for its iPhones, said last month it plans to invest more than US$10 billion in a display-making factory in the United States.
Wisconsin’s tax incentives would be awarded over 20 years if Foxconn meets hiring targets, officials said Wednesday.
Walker said the plant was the largest economic development project in the state’s history.
White House Chief of Staff Reince Priebus told a Wisconsin TV station that Trump was aboard Marine One over Kenosha, Wisconsin, in April and spotted the site of a former Chrysler plant.
When Foxconn executives met with Trump in the Oval Office, “the president said I know a good spot where you should go — that place in Kenosha,” Priebus recounted.
Walker said Foxconn is considering several sites in southeast Wisconsin and will announce a final site soon.
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