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Company News >> Is Foxconn reborn in the US LCD factory? Local government or deprivation of tax reduction subsidies 13th,July,2019
                                            According to CNBC reports, Wisconsin Governor Tony Evers sneaked off the Foxconn factory construction site last month. He later said in an interview that the commitment of the Foxconn factory to create employment may be again short. Cheques can't reach the threshold of billions of dollars in bonuses.

Wisconsin Governor Tony Evers said the state's Foxconn plant will only create 1,500 jobs when it goes into production next May. This figure is the same as that since Foxconn changed its factory plan a few months ago, far below the 13,000 jobs promised by President Trump when he started construction a year ago.

Since Evers succeeded Wisconsin's former governor Scott Walker, he has been negotiating with Foxconn. Evers said that he now has a "clear" understanding of Foxconn's plan. According to the $4 billion agreement with the US government, Foxconn will need to provide 1,800 jobs for the next round of tax credits, and the current 1,500 jobs are clearly insufficient. Foxconn has missed the first employment target set by the contract, and last year only recruited 156 employees instead of 260.

Instead, Foxconn purchased a series of vacant buildings for the state's “innovation center” as part of the promised “Artificial Intelligence 8K+5G Ecosystem” (although it never specified what the ecosystem is). Although Foxconn initially questioned the tech blog The Verge about the vacancy of these buildings, it has been 89 days since the company promised to make a statement or make amendments to the Innovation Center's plans.

The sharp decline in the number of jobs was due to Foxconn's cancellation of the promised 20 million-square-foot 10.5-generation LCD panel factory for the production of 65-inch TV, which was specified in a contract with Wisconsin. Instead, a 1 million-square-foot facility broke ground, and the company claims it will be the sixth-generation plant to produce smaller LCDs.

Foxconn said the plant will also assemble servers and network equipment, which may explain why display manufacturing experts say the construction plan submitted to the country does not seem to show a factory.

As we all know, in 2017, Foxconn announced that it will build a new factory in the United States, and plans to build a 20 million square foot park that produces advanced LCD panels. It is said to be the largest greenfield investment project of foreign companies in US history, and was praised by US President Trump as him. Proving the proof of US manufacturing.

In Trump's view, Foxconn's move not only introduces funds into the United States but also increases local employment, so it has deliberately set up corresponding government funding. For Trump's expectations, it seems that Foxconn does not agree.

In fact, this is not the first time Foxconn has failed to meet the established (employment) target at the US factory.

According to last year's situation, only 178 full-time employees were employed in 2018, instead of the target of 260, so they failed to receive a tax credit of up to $9.5 million.

Although Foxconn’s consecutive “employment checks” have not been fulfilled, Weizhou Governor Ivers said: “For Weizhou, the 1,500 employees were very important tomorrow, and we look forward to working with them (Foxconn). The plan is more specific. Before I saw them pouring concrete to build a factory."

According to reports, under the global economic and trade disputes, Foxconn has adjusted its investment plan according to market demand, and has revised the 10.5-generation large-size panel factory in Weizhou to the 6th generation IGZO LCD panel factory.

According to an agreement between Foxconn and the Weizhou Economic Development Corporation (WEDC), it is expected to create 13,000 jobs by 2032. The company will be recruited in stages to meet specific goals in order to qualify for approximately 30. A subsidy of US$100 million.

In response, Peter Buck, CEO of Foxconn Technology, responded: “The long-term goals of the project have not changed. I communicate with our team and we are committed to providing 13,000 jobs.”

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