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Foxconn still lags behind Wisconsin outfitting targets
13.10.2021 [08:06],
Alexey Razin

More than three years ago, Donald Trump used Foxconn’s Wisconsin plant initiative as one example of his economic policy demonstration – a new plant was to appear in the United States, creating 13,000 jobs. Since then, Foxconn has failed to come close to the business plan in all respects.

Image source: Reuters

As noted by Reuters, this week the Wisconsin Economic Development Agency (WEDC) expressed its concern about the lack of progress on the construction and equipment of the Foxconn plant, which was originally supposed to produce LCD panels. The company later abandoned these plans, soberly assessing the economic feasibility of this type of activity, but it did not manage to find a new purpose for the “construction of the century”.

Foxconn has been alerted by the Wisconsin government that the Taiwanese company was unable to hire enough employees for a new venture in 2021 to qualify for $ 4 billion in tax breaks. The total construction budget is $ 10 billion, so Foxconn is highly interested in receiving tax breaks from the state authorities. In turn, Foxconn representatives said that they have fulfilled their hiring obligations for 2021, as more than 520 people have received jobs.

Foxconn is also concerned that the state is changing the rules of the game on the fly, ignoring the fact that the project is being negotiated. Now the company may lose the right to receive tax benefits. Wisconsin Governor Says Foxconn Deal Needs Reconsideration. According to the state authorities, the company has not yet provided clear data on its further intentions, and therefore it is difficult to talk about the provision of tax incentives in such conditions.

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