Foxconn to build LCD factory in USA, investing 10 bln United States dollars

Flood damage in Kenosha County

Wisconsin's deal with electronics giant Foxconn requires the state Legislature to pass a $3 billion incentive package no later than September 30.

Foxconn is best known as Apple's primary manufacturing partner, and it assembles products like the iPhone. "Foxconn will invest in Southeast Wisconsin, while a larger facility is constructed over the coming years, and that facility is now under will be about the biggest there is anywhere", Trump said.

The United States has added 70,000 manufacturing jobs since November, bringing the total to almost 12.4 million, but has not added any net factory jobs in the last two months, according to the Bureau of Labour Statistics.

Other elected officials involved in the negotiations included Trump, White House chief of staff, Reince Priebus, Vice President Mike Pence, and Wisconsin Governor Scott Walker.

Seven states had competed for the plant.

Wisconsin is offering $3 billion in economic incentives over 15 years if Foxconn invests $10 billion in the state and creates 13,000 jobs at a planned display-panel factory.

The effort proved to be too much for other states like NY that had also been vying to land Foxconn, a major supplier to Apple and other electronic device companies that is based in Taiwan.

The MOU commits Gou to creating 13,000 jobs over six years with an average salary of US$54,000.

If Foxconn does fulfil its promise, it would be Wisconsin's largest economic development project and would also award tax incentives for over 20 years, officials say.

Foxconn is the world's largest electronics contract manufacturer, so this development has the potential to shake up that arena.

Wisconsin state Senator Jennifer Shilling, a Democrat, questioned whether there is "legislative appetite for a $1 (billion) to $3 billion corporate welfare package".

Tangen said the benefits to the company would be substantial.

Even in 2013, Foxconn announced an investment of $30 million and hiring 500 workers in a new factory at Pennsylvania.

Critics have cautioned that Foxconn has made promises before to invest in the US and not followed through.

"We know that the cuts to education have been devastating", Hintz says.

Blake Moret, Rockwell Automation President and CEO, added, "We are excited about the opportunity to work with a global technology and manufacturing leader to deliver advanced IIoT solutions to the electronics manufacturing industry".

Those numbers, coupled with the Foxconn investment, will help Apple Chief Executive Officer Tim Cook argue that his company is already making a significant contribution to United States jobs, according to Andrew Rose, an economics professor at the University of California, Berkeley's Haas School of Business.

Foxconn would also be allowed to skip another $150 million in sales tax on purchases such as building goods. "We want a win-win-win".



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