Under the original deal, signed in 2017, Taiwan-based Foxconn would have qualified for $2.85 billion in state tax credits if it invested $10 billion and created 13,000 jobs. Under the new deal, Foxconn will qualify for $80 million if it employs 1,454 people with an average wage of $53,875 and invests $676 million by 2026. Under the original deal, when taking into account local government incentives, the taxpayer subsidies for Foxconn totaled more than $4 billion.
The new contract is good for six years rather than 15. It also allows the state to recover 100% of incentives paid each year in the event of a default.
Both Evers and Missy Hughes, secretary of the state economic development agency, said the amended contract would treat Foxconn the same as other businesses.
Foxconn Technology Group will be eligible for just $80 million in taxpayer subsidies under a new contract signed Tuesday, down from nearly $3 billion it could have received under the original deal that envisioned a much larger project in southeastern Wisconsin. Democratic Gov. Tony Evers, who ran in 2018 as a critic of the deal that his Republican predecessor struck…
Foxconn scales down its project in Wisconsin State
Reuters, WASHINGTON
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.
A construction site at the Foxconn manufacturing complex in Mt Pleasant, Wisconsin, is pictured on Aug. 19 last year.
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.”
Foxconn Deal with Wisconsin Lowers Tax Breaks to $80 Million wxpr.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from wxpr.org Daily Mail and Mail on Sunday newspapers.