Curtailed Deal Brings ‘Sad End’ to Foxconn’s LCD Ambitions in Wisconsin
Stark differences abound between the contract then-Wisconsin Gov. Scott Walker (R) signed with Foxconn in November 2017 to build a Gen 10.5 LCD fab and bring 13,000 jobs to his state (see 1711130023) and the sharply curtailed deal Walker’s successor,…
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Gov. Tony Evers (D), renegotiated with Foxconn this week. Under the contract with Walker, Foxconn would have collected up to $2.85 billion in cash credits from Wisconsin, equaling 15% of what it spent on construction and 17% of its payroll costs, if it brought the project to full-scale operations by 2022. The agreement with Evers caps Foxconn’s cash credits at $80 million, based on a projected workforce of 1,454 employees -- 11% of what the contract envisioned less than four years ago under a different governor. The only constant between the two deals is the $53,875 average wage Foxconn is obligated to pay to qualify for any cash credits. But gone are the aspirations to build the Gen 10.5 fab. In its place is a vague agreement for Foxconn to use its giant campus in southeast Wisconsin for “economic investment activities related to locating and operating a technology and manufacturing ecosystem.” Said Display Supply Chain Consultants President Bob O’Brien, who followed Foxconn’s Wisconsin LCD ambitions closely: “Looks like a big win for the governor, and a sad end to the Eighth Wonder of the World.” That’s how Foxconn and Wisconsin officials had dubbed the project at the 2017 contract signing.