Foxconn 'Remains Committed' to Wisconsin Plant and Promise of Eventually Employing 13,000 Workers

Discussion in ' News Discussion' started by MacRumors, Apr 19, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Apple supplier Foxconn today said that it remains committed to its contract to build a display plant and research facility in Wisconsin (via Reuters). The company's comment comes a few days after Wisconsin Governor Tony Evers said that the state wanted to renegotiate the Foxconn deal, partly due to the belief that the Taiwanese company was not expected to reach its goal of creating 13,000 jobs in Wisconsin.


    Foxconn's original goal for the project was to eventually employ 13,000 workers on the site, and today the company has confirmed that it "remains committed" to this plan. Foxconn initially announced the project in 2017 at a White House event alongside President Donald Trump. Governor Evers recently took office in January 2019, inheriting the deal to Give Foxconn $4 billion in tax breaks and other incentives.
    Over the years, Foxconn's Wisconsin plant has gone through many iterations as the supplier faced new roadblocks and cost-cutting measures. The plant was designated as a TV display factory in its early stages, then pivoted to small to medium-size displays for smartphones, infotainment systems, and other "niche products".

    In early 2019, Reuters reported that Foxconn would greatly scale back its plans to produce displays of any kind in Wisconsin and instead focus on research and development. The news came from Louis Woo, assistant to Foxconn CEO Terry Gou, who said Foxconn is "not building a factory" in Wisconsin.

    According to Woo, the steep cost of making advanced screens for TV sets and other devices in the United States led to the decision. Around the same time, the company confirmed it had slowed its pace of hiring, down to about 5,200 people expected by the end of 2020.

    As of now, Foxconn has fallen short of its employment goals in 2018, hiring just 178 full-time workers rather than the 260 it intended to for the year. The supplier has to meet certain hiring and capital investment goals under its current contract to qualify for tax credits in Wisconsin. With its inability to meet the 260 hiring target last year, it failed to earn a tax credit of up to $9.5 million.

    Article Link: Foxconn 'Remains Committed' to Wisconsin Plant and Promise of Eventually Employing 13,000 Workers
  2. Relentless Power macrumors Penryn

    Relentless Power

    Jul 12, 2016
    Except, didn’t the new Wisconsin governor state something about 13,000 jobs seems unrealistic:

    I think at this point in time that would be an unrealistic expectation when they're downsizing the footprint of what they're doing," Evers said. "So, 13,000 people as Foxconn employees is probably difficult to imagine for me right now."
  3. Pepe4life macrumors regular


    Nov 15, 2018
    Terry Gou talks big but rarely keeps his promises. This clown now wants to run for president of Taiwan.
  4. ThunderSkunk macrumors 68030


    Dec 31, 2007
    Milwaukee Area
    Yes, hence the second sentence of the article.
    This entire project has been BS.
  5. michaelsviews macrumors 65816

    Sep 25, 2007
    New England
    According to Woo, the steep cost of making advanced screens for TV sets and other devices in the United States led to the decision.

    Because of American Greed maybe
  6. Stevez67 macrumors member


    Dec 24, 2016
    As long as you define "American greed" as paying a living wage, worker protections, environmental stewardship, and following through on promises made to secure taxpayer funding, yea Americans are greedy. /sarcasm
  7. JetTester macrumors 6502

    Feb 12, 2014
    A contract is a contract. Keep up with the annual requirements, or lose the incentives. It may be premature to just write it off because "it seems unrealistic". Let it play out as written in the contract, and let the chips, or displays, fall where they may.
  8. jmgregory1 macrumors 68000


    Jun 24, 2010
    Chicago and a few other places around the world
    The whole thing was nothing more than a PR stunt. There will be no jobs, no long term benefit to the state or workers in Wisconsin.
  9. gugy macrumors 68040


    Jan 31, 2005
    La Jolla, CA
    Americans can’t compete with manufacturing costs of third world countries and expect to pay the same for the products made in US. There are almost no regulations there, the quality of living is lower and cheaper. Labor gets paid a fraction.
    It’s a pipe dream. Adapt or die.
    Still amazes me how Americans still fall for this political BS.
  10. MacDann macrumors 6502a


    Mar 27, 2007
    Can see the end of the Earth from here
    And I quote from a previous post from an article about much the same:

    Foxconn appears to have scammed the politicians and the residents. Sadly, there are a number of locals who have been affected by this due to land grabs using eminent domain among other such tactics. At least Foxconn isn't meeting benchmarks so they don't get their tax spiffs. The people who suffer are the taxpayers who are funding the development for the factory that won't get built....

  11. 69Mustang macrumors 604


    Jan 7, 2014
    In between a rock and a hard place
    To make matters worse, the outgoing Governor Scott Walker, and the outgoing legislature pushed through a ton of "roadblocks" to keep the incoming government from undoing this debacle. They didn't give two whits about the Wisconsinites.
  12. BootsWalking macrumors 6502a

    Feb 1, 2014
    This is what happens when government and politics gets in the way of business and free markets. Absent these fundamentally unfair tax incentives that favor one company over another, the notion that a business would know in advance how many employees it will eventually hire to manufacture a technology it hasn't even developed or committed to yet is absolutely absurd.
  13. jlc1978, Apr 19, 2019
    Last edited: Apr 19, 2019

    jlc1978 macrumors 68020


    Aug 14, 2009
    Politicians love to say "See JOBS!!!" and people want to believe they'll get a good paying job with benefits.Telling the hard truths doesn't win elections.
    --- Post Merged, Apr 19, 2019 ---
    That's the dirty little secret of "economic development incentives." They don't create jobs, they just create winners and losers in terms of where jobs go. If it is profitable to build a plant a company will, if not they won't; economic incentives just make an unprofitable one worthwhile as long as the incentives last. Then you shutter the plant and start the cycle all over elsewhere.
  14. TheShadowKnows! macrumors 6502a


    Sep 30, 2014
    National Capital Region
    MacDann, you nailed it, but only partially, though: No, tax spiffs, but money has been spent for infrastructure.

    This is an excellent report on the "CON" pulled by FoxCONn:

    [The name alone should have raised the red flags, as FoxConn has done this mating dance elsewhere, not just once but multiple times, with exactly the same endgame.]
  15. Squonk macrumors 65816


    Mar 15, 2005
    You have all made excellent points above. Mine is not so well conceived...

    They lost out on "up to $9.5 million tax credit" for falling short of hiring 82 full time positions last year. I do not condone corporate greed, but that is a bone-headed fail.
  16. gavroche macrumors 65816


    Oct 25, 2007
    Left Coast
  17. GuruZac macrumors 6502a


    Sep 9, 2015
    Yep, American business has been shortsighted for profit. Now we have generations of the American buying public who simultaneously bemoan the loss of jobs, while also buying the cheaper product made elsewhere. People will have to get introduced to the notion of buying local simply costs more. Want jobs here, vote with your wallet. The other side to this is there is little in the way of a qualified worker base to produce high end electronics on the scale we see done in Asia. That could be changed with more emphasis in trade school training etc. College is simply unnecessary for many people. They leave school in debt with a degree that is essentially useless. Unless it requires a special skill, what is the point anymore? We need more trade schools and vocational programs affiliated with high schools.
  18. flakk-jakket macrumors newbie


    Jan 2, 2019
  19. YaBe macrumors 6502a


    Oct 5, 2017
  20. Relentless Power macrumors Penryn

    Relentless Power

    Jul 12, 2016
    What I quoted from Tony Evers was never mentioned in the Macrumors article that he called the 13,000 jobs ‘unrealistic’. That’s what I was getting at.
  21. ElectricPotato macrumors regular


    Dec 13, 2018
    #21 the appropriate juncture, in due course, in the fullness of time. Yadda, yadda, inna gadda da vida.
  22. Solomani macrumors 68040


    Sep 25, 2012
    Alberto, Canado
    This was a political PR stunt all along…. it's in the same level of stupid as the promise of "We're going to force Apple to manufacture their products in America again!"
  23. szw-mapple fan macrumors 65816

    szw-mapple fan

    Jul 28, 2012
    How is that a fail? Hiring 82 more workers with salary and benefits would cost much more than $9.5 million in the long run, especially if they are not really needed in any specific roles.
  24. Lee_Bo macrumors regular


    Mar 26, 2017
    Greenville, SC
    I probably shouldn't reply this way, based on the company I work for.....but....

  25. Eriamjh1138@DAN macrumors 6502a


    Sep 16, 2007
    BFE, MI
    What do you think FoxCONn is going to say? They will say this until they bail.

    There will be no jobs.

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