Foxconn to pay almost $1 billion in wages and benefits
- Author: Anthony Vega Jul 31, 2017,
Jul 31, 2017, 0:23
Seven states had competed for the plant.
The Washington Post and other media outlets have alluded to the convenient political advantages in Foxconn's commitment for Wisconsin governor, Scott Walker, who's up for re-election next year. Foxconn was exploring investments in seven states including Illinois, Indiana, Michigan, Ohio, Pennsylvania and Texas. Larson says. "There's a tendency by some of these larger companies to take everything they can ... and then go".
Shortly after President Trump's inauguration, Gou began teasing plans to invest more than $7 billion in a plant for producing displays, with the potential to create as many as 50,000 jobs.
The official said the White House was closely involved in Foxconn's decision to locate a factory in the United States and that the president had met personally with Foxconn Chairman Terry Gou.
In his speech, Trump made clear that he should receive the credit for the investment deal, saying "if I didn't get elected, he definitely would not be spending 10 billion dollars". "So we want to start early, we want to look at all the opportunities whether it's in manufacturing, construction, IT, transportation, healthcare, finance and accounting there's just a whole abundance of high demand areas that we have across the state", said Walker. Plus, around 22,000 indirect and induced jobs will be created because of Foxconn's economic impact. The new factory is scheduled to open in 2020 and create 3,000 jobs.
Foxconn is expected to select a 1,000-acre site in southeast Wisconsin and could be eligible for some additional local incentives, officials said.
"Today, I'm pleased to announce that Foxconn. will build a state-of- the-art manufacturing facility for the production of LCD panel products in Wisconsin", Trump said in a job announcement at the White House.
Scot Ross, executive director of the progressive advocacy group One Wisconsin Now, noted the WEDC is reporting the project will only generate $181 million annually in state and local tax revenue, but the subsidy program has an annual cost of up to $250 million over 15 years.
Trump targeted Apple during his election campaign, promising to force the Cupertino, California-based company to bring more factory jobs to the U.S. The rhetoric prompted fears of a trade war with China, where contract manufacturers such as Foxconn, Pegatron Corp. and Quanta Computer Inc. assemble gadgets designed by U.S. tech companies.
Foxconn plans to make LCD screens for medical, automotive, aviation and entertainment industries at the plant in Wisconsin, and will be the first of its kind in North America.
Several critics have pointed to Foxconn's previous failures with USA -based development projects.
The Canadian Broadcast Corporation (CBC) pointed out that Foxconn has made promises to invest in the U.S. in past that fell through, writing, "Foxconn promised in 2013, for example, to invest $30 million and hire 500 workers for a new, high-tech factory in Pennsylvania that was never built". They include up to $1.5 billion in income tax credits for job creation, $1.35 billion in income tax credits for capital investment and up to $150 million in a sales tax exemption for the purchase of construction materials.
The state will be giving Foxconn up to $3-billion tax breaks, tied to the company meeting certain building and hiring targets.