Foxconn Says It Will Move Forward With Wisconsin Plant After Conversation with Trump
Company says it will build an LCD factory in Wisconsin, two days after saying constructing such a plant would be economically unfeasible
Foxconn Technology Group, a major supplier to Apple Inc., said Friday that it has decided go ahead with the construction of a liquid-crystal display factory in Wisconsin, two days after saying building such a plant would be economically unfeasible.
The Taiwan-based company said it is moving forward with a planned facility that would make small LCD screens after productive discussions with the White House and “a personal conversation between President Donald J. Trump and Chairman Terry Gou.”
“Our decision is also based on a recent comprehensive and systematic evaluation to help determine the best fit for our Wisconsin project,” the company said. Foxconn said the campus would serve as both an advanced manufacturing facility and a technology hub for the region.
Mr. Trump on Twitter praised the move as “Great news on Foxconn in Wisconsin after my conversation with Terry Gou.” A White House official declined to comment.
The announcement capped a week of uncertainty about plans for the factory, which Wisconsin landed by promising $4 billion in public support.
Foxconn, formally known as Hon Hai Precision Industry Co., announced 18 months ago that it would invest $10 billion, build a 22-million-square-foot LCD panel plant and hire 13,000 employees, primarily factory workers. Foxconn, the world’s largest electronics contract manufacturer, makes devices such as Apple’s iPhones mostly in China. The company is in a potentially vulnerable spot as China and the U.S. engage in a trade battle involving tariffs.
On Wednesday, a top aide to Mr. Gou said high labor and production costs in the U.S. would make it difficult for Foxconn to compete with rivals if it manufactured LCD displays in Wisconsin. Louis Woo, a special assistant to Mr. Gou, said Wednesday that roughly three-quarters of Foxconn’s Wisconsin jobs would be in research, development and design, instead of manufacturing.
The back and forth came after the Taiwanese contract manufacturer fell short of a job-creation target in Wisconsin last year to obtain tax credits, amid a tight U.S. labor market. The Wall Street Journal reported in November that Foxconn considering bringing in engineers from China to Wisconsin as it struggled to find personnel locally.
Wisconsin state lawmakers lauded Foxconn’s announcement Friday. “We want to thank President Trump for his commitment to Wisconsin workers—our state has an ally in the White House,” said state Assembly Speaker Robin Vos and state Senate Majority Leader Scott Fitzgerald, both Republicans.
Gordon Hintz, a Democrat and minority leader in the state Assembly, said Foxconn’s decision to proceed with the factory is at odds with its stated position earlier this week that screen manufacturing in the U.S. would be prohibitively expensive. “The deal never made any sense unless your goal is to maintain trade relations and avoid tariffs,” he said.
Mr. Hintz, who has called for a public hearing on Foxconn’s contract with the state, said he still has concerns about the deal’s financial viability.
Prior to the Wisconsin project, Foxconn’s discussions to expand U.S. manufacturing hadn’t resulted in new factories. In 2013, Foxconn said it might invest $40 million in Pennsylvania for manufacturing and research facilities. In 2014, Mr. Gou said he was studying the feasibility of an advanced-display manufacturing plant in the U.S. Neither idea made headway.
Wisconsin Gov. Tony Evers and other state Democrats have said the incentive package given to Foxconn was too large and have highlighted concerns over the company’s changing plans. Foxconn’s plan had been announced under the previous governor, Scott Walker, a Republican.
Write to Valerie Bauerlein at valerie.bauerlein@wsj.com
Appeared in the February 2, 2019, print edition as 'Foxconn Reverses Decision on Factory.'