Taiwan’s Foxconn ratifies US$10b deal with Wisconsin for LCD factory

PUBLISHED : Saturday, 11 November, 2017, 4:16pm
UPDATED : Saturday, 11 November, 2017, 10:45pm

Foxconn Technology Group, the world’s largest contract manufacturer of consumer electronics, has formally ratified a US$10 billion investment deal with Wisconsin that could bring up to 13,000 jobs to the US state.

The project, first announced in July during a ceremony at the White House with US President Donald Trump, will involve construction of a liquid crystal display (LCD) panel manufacturing plant in Racine County, Wisconsin.

In Wisconsin on Friday, state governor Scott Walker and Terry Gou, founder of the Taiwanese company, signed a contract that locks the state into providing US$3 billion in tax incentives if Foxconn invests up to US$10 billion in the facility and fulfills a promise to hire 13,000 workers in the state.

Gou said he would personally pay up to US$500 million towards the project if Foxconn does not fulfil its side of the deal.

Foxconn said the project would create many thousands more jobs as part of the Wisconsin-based logistics supply chain to support the factory. It is the largest state tax incentive package offered to a foreign company in the US.

The plant will manufacture the world’s most advanced, large-sized LCD panels for use in a range of technologies from the latest generation televisions to self-driving cars and aircraft systems.

“We will leverage our experience and expertise as a global manufacturing technology leader to drive innovation in advanced manufacturing systems, establish a conducive industry environment that supports a vibrant supply chain, and develop cutting-edge products and solutions to meet future needs for the most advanced display technology,” Gou said on Saturday.

“We look forward to being a part of the Wisconsin community and contributing to its transformation through the value that our campus will generate, and we will do so while ensuring that the very things that attracted us to Wisconsin – its talented and hardworking workforce, long track record in advanced manufacturing, favourable quality of life and environment – are protected and nurtured.”

In August, Foxconn announced it was planning a multibillion dollar investment in the US state of Michigan, with the new investment engaged in the research and development of vehicles that can drive autonomously.