Foxconn commits to building factory in US

Foxconn reaffirms its pledge to build a $10 billion factory in the US state of Wisconsin.

worker at Foxconn Wisconsin factory Source: Bloomberg

Foxconn Technology Group has reversed a previous decision to leave the US and will build an electronics factory in the US state of Wisconsin. The technology company previously stated that it would not proceed with plans to have a plant in Wisconsin.

Why is Foxconn building a factory in Wisconsin?

Foxconn is a powerful Taiwanese electronics giant that has contracted with Apple.The company was enticed to come to Wisconsin in 2017 to build a $10 billion factory to produce LCD TV screens after receiving $4 billion in tax incentives. However, just days ago, the corporation was wavering on its commitment and was backtracking on making TV screens in the US. Louis Woo, special assistant to Foxconn chief executive officer(CEO), Terry Gou, said that there wasn’t a market for TV production.

‘In terms of TV, we have no place in the U.S. We can’t compete,’ said Woo.

However, after a conversation with US President, Donald Trump, who campaigned for the company to come to the US, Foxconn has reaffirmed its commitment to build a factory in Wisconsin.

‘After productive discussions between the White House and the company, and after a personal conversation between President Donald J. Trump and Chairman Terry Gou, Foxconn is moving forward with our planned construction of a Gen 6 fab facility. We have undertaken the evaluation while simultaneously seeking to broaden our investment across Wisconsin far beyond our original plans to ensure the company, our workforce, the local community, and the state of Wisconsin will be positioned for long-term success,’ said Foxconn in a statement.

How will the Foxconn deal benefit the US?

Many Wisconsin residents are relieved that Foxconn will come to their state. The plant is projected to bring 13,000 jobs to the Midwestern state. Rebecca Seaton is the owner of a construction company, Seaton Contractor Services, that’s contracted to build the corporation’s factory. She is confident that Foxconn will finish the factory that they pledged to complete.

'They’ve[Foxconn] already committed. They’ve bought buildings. I don’t think anything will change,’ said Seaton.

The Foxconn factory’s success could have many meanings for the US. Trump could argue that the factory is proof of the resurgence in US manufacturing. Wisconsin could see a surge in employment that could boost the state’s economy. The corporation has to work hard to overcome cynicism that it’s taking advantage of tax cuts and ensure that US workers will benefit from Foxconn’s global expansion.

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