Foxconn's showcase Wisconsin LCD factory becomes aspirational 'manufacturing ecosystem'
- Reference: 1619014750
- News link: https://www.theregister.co.uk/2021/04/21/foxconn_wisconsin_new_agreement/
- Source link:
. [1]@GovEvers today announced a renegotiated contract with [2]#Foxconn will save [3]#Wisconsin [4]#taxpayers more than $2.77 BILLION, protect state and local investments in the project, and give the company the ability to respond to market need. More: [5]https://t.co/0pUKQ3OgHC — WEDCNews (@WEDCNews) [6]April 20, 2021
[7]
Foxconn's $10bn investment for the development of Donald Trump's [8]favorite non-functioning LCD factory has been reduced to $672m.
Also, it's not an LCD factory anymore. The project scope now includes "economic investment activities related to locating and operating a technology and manufacturing ecosystem." Details of what the "ecosystem" entails were not shared.
[9]
WEDC [10]said the new agreement sets the same tax incentive rates for hiring and capital investments as its other projects. Instead of $2.85bn in incentives, Foxconn is expected to receive $80m of tax credits over six years contingent on employment and capital investment requirements.
The new project has also reduced jobs from 13,000 at an average annual salary of just under $54,000 to 1,454. Furthermore, the deal term was shortened. Rather than ending in December 2032, it will now end in December 2025.
"The agreement provides the opportunity to be responsive to the marketplace that a modern, forward-looking company like Foxconn needs to pursue innovation. At the same time, by right-sizing the contract, our state is in a position where we can ensure that all businesses – everywhere – have the resources they need to grow and prosper," said WEDC CEO Missy Hughes in a canned statement.
The facility has received much attention as Donald Trump lauded the project, proclaiming the LCD manufacturing facility the "eighth wonder of the world." After three years, it looked to be a failure, with only 281 of the originally promised 13,000 employees onsite. Investigations revealed bored and abused employees in dilapidated buildings.
In 2019, Foxconn said making TVs in the US was unprofitable and pondered using the facility for R&D instead. Later they mused about using Mount Pleasant for electric vehicles. [11]Foxconn said the project was affected by supply chain issues.
[12]
As for the new agreement, WEDC said that if terms are not kept, the state can recover 100 per cent of incentives paid each year. ®
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[1] https://twitter.com/GovEvers?ref_src=twsrc%5Etfw
[2] https://twitter.com/hashtag/Foxconn?src=hash&ref_src=twsrc%5Etfw
[3] https://twitter.com/hashtag/Wisconsin?src=hash&ref_src=twsrc%5Etfw
[4] https://twitter.com/hashtag/taxpayers?src=hash&ref_src=twsrc%5Etfw
[5] https://t.co/0pUKQ3OgHC
[6] https://twitter.com/WEDCNews/status/1384628693423706116?ref_src=twsrc%5Etfw
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YIBMFScWoOcC5QYv0TCutAAAAEk&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[8] https://www.theregister.com/2020/10/20/wisconsin_foxconn_factory/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YIBMFScWoOcC5QYv0TCutAAAAEk&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[10] https://wedc.org/blog/gov-evers-announces-renegotiated-foxconn-contract-to-save-taxpayers-2-77-billion/
[11] https://www.theregister.com/2021/04/20/foxconn_wisconsin_new_deal/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YIBMFScWoOcC5QYv0TCutAAAAEk&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://whitepapers.theregister.com/
Tell us it is not abused so ..... and be absolutely amazed whenever it both is and isn't.
As for the new agreement, WEDC said that if terms are not kept, the state can recover 100 per cent of incentives paid each year.
Now that's a nice incentive that guarantees twelve months breaking promises.
While this should be illegal sadly this is all too common this side of the pond. Companies ask for huge tax incentives promising gazillions of high paying jobs. Politicians go along looking for the photo op and good press. Thankfully Wisconsin tends to require actual results before paying any money. At least this keeps them from the worst excesses.
The whole thing
Sounds like an overhyped under researched boondoggle from the start. I get the impression Foxconn was overwhelmed by the apparent promises made by Mr Bigly and co and Wisconsin didn't really have a clue while also being overwhelmed by Bigly and co.
Re: The whole thing
And they had to abandon this project to free the $2.77Bn to 'invest' in new TSMC and Intel fabs in Wisconsin - which will bring millions of jobs
Stop paying bribes to corporations
These "incentives" are just bribes to corporations, paid for by the taxpayers. The Wisconsin voters need to throw their bums out, instead of buying into their lies.
Re: Stop paying bribes to corporations
But $POLITICIAN brought a $2.77Bn investment in Wisconsin and thousands of jobs.
Vote $POLITICIAN now or you are killing these millions of jobs
save #Wisconsin #taxpayers more than $2.77 BILLION
By not paying for something that was never going to happen?
I saved my parish council $3 BILLION by not building our own space port, we also massively cut carbon emissions by reducing future rocket launches by 100%