© Reuters. FILE PHOTO: Construction continues on the Foxconn production complex in Mt. Satisfied
(The exact quote shows that the $ 10 billion plan belongs to Hon Hai Precision, not Foxconn Technology Co Ltd)
By David Shepardson and Karen Pierog
WASHINGTON (Reuters) – Taiwanese contract electronics maker Foxconn will significantly shrink its expected investment in a originally planned $ 10 billion Wisconsin plant, according to a The deal was announced with the state on Tuesday.
The investment was first announced heady at the White House in July 2017, when Donald Trump took over as president.
Wisconsin will reduce project-authorized tax credits from $ 2.85 billion to $ 80 million as Foxconn reduces its planned investment from $ 10 billion to $ 672 million and cuts the number of jobs. following the plan from 13,000 to 1,454, Wisconsin Governor Tony Evers said in a statement.
The 20 million square foot campus marked the largest investment in US history for a brand new location for a foreign-based company when it was announced. It was hailed by Trump as evidence of America’s ability to revive manufacturing.
Foxconn, officially named Hon Hai Precision Industry Co Ltd, said the agreement gives it “the flexibility to pursue business opportunities in response to changing global market conditions. ” The company said “the initial projections used in 2017 negotiations at this time have changed due to unforeseen market fluctuations.”
Foxconn initially intended to manufacture advanced large screens for TVs and other consumer and professional products at the facility under construction.
They then said they would build smaller 6th-generation LCD screens instead, and Trump stopped discussing Foxconn’s investment during his trips to Wisconsin.
On Tuesday, Foxconn said it plans to make Wisconsin “one of the – if not the – largest manufacturers of data infrastructure hardware in the United States.” The company did not immediately respond to a Reuters request to seek more details on what it would build.
Evers said the newly negotiated agreement between Wisconsin Economic Development Group and Foxconn would save Wisconsin taxpayers “a total of $ 2.77 billion over the previous contract, upholding liability measures. Job creation is required to receive incentives and protection of hundreds of millions of dollars in the country and state infrastructure investments are made to support the project. “
Evers says Foxconn qualifies for an performance-based tax credit of up to $ 80 million over six years if it meets its employment and capital investment goals.
The original Wisconsin package also included local tax incentives and state and local government road and highway investments, bringing the total taxpayer-sponsored subsidies to more than $ 4 billion. la.
Foxconn notes that since 2017, it has invested $ 900 million in Wisconsin, covering a number of different facilities in the state.
(This story corrects the snippet to show that the $ 10 billion plan belongs to Hon Hai Precision, not Foxconn Technology Co Ltd.)
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