2021/04/21 14:17 Former U.S. President Donald Trump takes tour of Foxconn with Foxconn chairman Terry Gou (right) in Mt. Pleasant, Wisconsin. Former U.S. President Donald Trump takes tour of Foxconn with Foxconn chairman Terry Gou (right) in Mt. Pleasant, Wisconsin. (AP photo) TAIPEI (Taiwan News) Taiwanese electronics manufacturer Foxconn will be eligible for just US$80 million in state tax credits under a new contract signed Tuesday (April 20) for its planned investment in the U.S. state of Wisconsin, down from the US$$2.85 billion it could have received under the original deal. The company announced Monday that it has agreed to scale back its manufacturing project near the city of Racine without providing details. Its vice chairman, Jay Lee (李傑), said the decision would give the company more flexibility to pursue business opportunities that meet market demand.
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.
More than half of Foxconn jobs expected to be with Foxconn Industrial Internet under new deal
Company can now also avoid default because of a pandemic
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An April 2021 aerial of the Foxconn project in Mount Pleasant. Credit: Curtis Waltz, aerialscapes.com
More than half of the jobs Foxconn and its related entities committed to creating in a new tax incentive deal with the state of Wisconsin are expected to be with Foxconn Industrial Internet’s U.S. subsidiary,…
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More than half of the jobs Foxconn and its related entities committed to creating in
a new tax incentive deal with the state of Wisconsin are expected to be with Foxconn Industrial Internet’s U.S. subsidiary, according to Wisconsin Economic Development Corp. records.Fii USA Inc. was added as an eligible recipient in the new contract, which also dramatically limited the tax incentives to Foxconn as the company scaled back its job and investment commitments.The original Foxconn contract offere
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.”
Renewed deal with Wisconsin to help business flexibility: Hon Hai focustaiwan.tw - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from focustaiwan.tw Daily Mail and Mail on Sunday newspapers.