Foxconn s new deal shows how project has changed since 2017 sheboyganpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from sheboyganpress.com Daily Mail and Mail on Sunday newspapers.
The ongoing push-and-pull between the state and the Taiwanese tech outfit has resulted in an agreement greatly reduced in scale since the initial deal celebrated by former President Donald Trump in 2017.
FILE – In this June 28, 2018 photo, President Donald Trump takes a tour of Foxconn with Foxconn chairman Terry Gou, right, and CEO of SoftBank Masayoshi Son in Mt. Pleasant, Wis., in 2018. (AP Photo/Evan Vucci, File)
MILWAUKEE (CN) The state of Wisconsin and Foxconn Technology Group announced on Tuesday details of a renegotiated contract for an electronics plant in the southeastern part of the state, arriving more than four years and multiple setbacks after the parties initially agreed to a much larger deal.
Changes
Under Foxconnâs original contract, signed in late 2017 by Walker, the company was slated to receive as much as $2.85 billion in state credits over 15 years â along with $150 million in sales tax breaks â if the company hired at least 13,000 employees and made a $10 billion capital investment in the state. Other state and local incentives bring the total to $4 billion.
Former President Donald Trump, who attended the facilityâs 2018 groundbreaking ceremony, described the Foxconn project as the âeighth wonder of the world.â
However, the Mount Pleasant project was later downsized to Generation 6, which would manufacture small screens for mobile phones, tablets, notebooks and wearable devices.
State will provide company up to $80 million under drastically down-scaled deal. By Jeramey Jannene - Apr 20th, 2021 03:43 pm //end headline wrapper ?>Current Wisconn Valley Science and Technology Photo courtesy of the Foxconn Technology Group.
The new agreement between the Wisconsin Economic Development Corporation and Foxconn cuts the potential tax credit award from $2.85 billion to $80 million.
In exchange Foxconn’s hiring and investment targets are cut from 13,000 employees and $10 billion invested to 1,454 workers and $672 million invested. The per-job wage credit falls from 17% to 7% as part of the renegotiated deal, with a minimum salary of $53,875 per qualified job. The credits remain refundable, effectively a cash payment award to the company.