Foxconn might shelve strategy to make LCD panels at $10 B Wisconsin factory

Foxconn might be reassessing its prepare for a enormous Wisconsin factory

The Chinese business stated in 2017 that the $10 billion center would make LCD display screens and utilize as much as 13,000 individuals– consisting of a substantial production labor force.

However, it’s reassessing and might rather adhere to employing primarily engineering and research study personnel to develop a “technology hub,” Reuters reported Wednesday, pointing out Louis Woo, an unique assistant to Foxconn CEO Terry Gou.

Woo pointed out the high expense of labor in the United States as an element, keeping in mind that it ‘d be more rewarding to make the display screens in China and Japan, assemble them in Mexico and import the completed item to the United States, according to Reuters.

The strategy was downsized after settlements with brand-newGov Tony Evers, Nikkei reported, pointing out a Foxconn file.

Evers, a Democrat, beat Republican incumbent Scott Walker in the November elections. Walker assisted charm Foxconn to Wisconsin with the biggest reward in state history, and Evers was vital throughout his project of Walker’s transactions with the business.

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Foxconn said it remains committed to the Wisconsin project and the creation of 13,000 jobs, but added that the project’s focus will be adjusted to meet the realities of the global market. 

“As our plans are driven by those of our customers, this has necessitated the adjustment of plans for all projects, including Wisconsin,” said a representative for the Foxconn Technology Group in an emailed statement. 

“In addition to our consideration of plans to produce traditional products such as television sets, we are also examining ways for Wisconsin’s knowledge workers to promote research and development in advanced industrial internet technologies and produce high-tech applications and solutions for industries such as education, medical and healthcare, entertainment and sports, security, and smart cities.”

Last summer, President Donald Trump hailed Foxconn’s Wisconsin plant as “part of the exciting story playing out across our nation” following his campaign promise to bring manufacturing to the US.

It wouldn’t be the first time Foxconn’s US ambitions have changed course. In 2013, Foxconn said it planned to invest $30 million in a Pennsylvania factory and create 500 jobs, but The Washington Post noted the plant was never built.

Foxconn is also reportedly changing its plans outside the US. Citing an anonymous source, Nikkei reported Thursday that the company is delaying for at least six months major work on a $9 billion factory in Guangzhou, a city in southern China. Uncertainty created by the trade war between the US and China was a factor in the decision, the source told the publication.

Neither the White House nor Evers’ office immediately responded to a request for comment.

First published Jan. 30, 7:22 a.m. PT.
Update, Jan. 31 at 8:10 a.m.: Adds details about Evers and Walker and about the Guangzhou delay.