Foxconn Technology Group (富士康科技集團) is drastically scaling back a planned US$10 billion factory in Wisconsin.
Under a deal with the US state announced on Tuesday, Foxconn is to reduce its planned investment to US$672 million and cut the number of new jobs to 1,454 from 13,000.
The Foxconn-Wisconsin deal was first announced at the White House in July 2017, with then-US President Donald Trump saying it might revive US tech manufacturing.
Photo: Reuters
The company, known as Hon Hai Precision Industry Co (鴻海精密) in Taiwan, said that the new agreement gives it “flexibility to pursue business opportunities in response to changing global market conditions.”
“Original projections used during negotiations in 2017 have at this time changed due to unanticipated market fluctuations,” it said.
Wisconsin Governor Tony Evers said that the new agreement would save Wisconsin taxpayers “a total of US$2.77 billion compared to the previous contract, maintain accountability measures requiring job creation to receive incentives, and protect hundreds of millions of dollars in local and state infrastructure investments made in support of the project.”
Under the deal negotiated between the Wisconsin Economic Development Corp and Foxconn, the company is eligible to receive up to US$80 million in performance-based tax credits over six years if it meets employment and capital investment targets, Evers said.
The incentives were in line with those available to any company, he said.
The tax credits were down from US$2.85 billion Foxconn could have received under the original deal that envisioned a much larger project in southeastern Wisconsin.
Foxconn said that since 2017, it has invested US$900 million in Wisconsin, including several different facilities in the state.
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