Foxconn's Wisconsin Site Will No Longer Be a Factory for Smartphone Displays, Instead Focusing on R&D

[Stoutman11]

Guys i hope you know the money Wisconsin pleged is directly tied to the number of jobs created.

Everyone commenting here fails to see that. In 2018 they missed their hiring target thus no extra incentive. Wisconsin is protected with the way the deal is setup.

 

[NT1440]

Guys i hope you know the money Wisconsin pleged is directly tied to the number of jobs created.

Everyone commenting here fails to see that. In 2018 they missed their hiring target thus no extra incentive. Wisconsin is protected with the way the deal is setup.

It’s still essentially taxpayers subsidizing jobs for a private company, a practice I’ll never understand. Basically we bought private jobs.

 

[Gudi]

It’s still essentially taxpayers subsidizing jobs for a private company, a practice I’ll never understand. Basically we bought private jobs.

Except you didn’t. Turns out even with subsidies it’s not profitable to hire Americans to do Chinese jobs.

 

[NT1440]

Except you didn’t. Turns out even with subsidies it’s not profitable to hire Americans to do Chinese jobs.

Well duh, no amount of subsidies are going to end capital’s endless chase of the lowest possible wages.

What do you mean we didn’t? They got like $2 billion in tax breaks for that facility, is that no longer the case?

 

[johannnn]

As a Chinese citizen (you know, where the company is based), whose entire family is heavily involved in tech, I am more than intimately aware of The Facts. The stats you read on a spreadsheet aren't necessarily the reality.

I’m not as Chinese as you are then, but I have lived China and have a Chinese GF.
I’m 100% sure the person I replied to isn’t talking about the suicide “shadow number”, but instead talking about the suicides reported in western media (https://en.m.wikipedia.org/wiki/Foxconn_suicides). And those reports clearly state what I said in my first post.

 

[jeyf]

Clearly there is a "sweet number" a level of manufacturing employment that needs to happen but manufacturing jobs don't pay much back as into the local economy. Every American should have an engineering degree.

 

[Cayenne1]

Attracting businesses and jobs is a competitive undertaking between States and Municipalities. Just look at the hoopla over bidding for Amazon headquarters in Queens.

The fact that Foxconn even planned to open a plant in Wisconsin surprised me. Many foreign companies locate in more tax and labor friendly areas of the U.S. But, it was most likely facilitated by Ryan and Walker over locating in the South or Southwest.

Now that Wisconsin is drifting back to the left, Foxconn's changes to their plans is also not surprising. Like it or not the political environment impacts business decisions.

So, where is Wisconsin going to get jobs for its population? I left there a number of years ago because of lack of engineering opportunity and high taxes.

 

[jeyf]

left or right politics is don't care for most corporations. The exception might be Hobby Lobby or a Colorado bakery.

 

[Gudi]

What do you mean we didn’t? They got like $2 billion in tax breaks for that facility, is that no longer the case?

Maybe, but you no longer get the promised jobs. They literally say, don’t call it a factory.

 

[NT1440]

Maybe, but you no longer get the promised jobs. They literally say, don’t call it a factory.

Oh I see, you’re pointing out that the “deal” is even worse than originally proposed, got it.

I thought you were trying to phrase the deal as anything but a major giveaway to a foreign multinational corporation, my mistake.

 

[ersan191]

Attracting businesses and jobs is a competitive undertaking between States and Municipalities. Just look at the hoopla over bidding for Amazon headquarters in Queens.

The fact that Foxconn even planned to open a plant in Wisconsin surprised me. Many foreign companies locate in more tax and labor friendly areas of the U.S. But, it was most likely facilitated by Ryan and Walker over locating in the South or Southwest.

Now that Wisconsin is drifting back to the left, Foxconn's changes to their plans is also not surprising. Like it or not the political environment impacts business decisions.

So, where is Wisconsin going to get jobs for its population? I left there a number of years ago because of lack of engineering opportunity and high taxes.

It had to be located near the Great Lakes because they needed a massive water source for the glass cleaning process. Michigan lost the bid and Ohio (rightfully) thought the plan was ludicrous.

 

[kwikdeth]

Yeah – Milwaukee, Chicago, the surrounding suburbs of each; maybe some people in the general area but they'd still be considered part of the Milwaukee-Chicago metropolitan area, anyway.

Except that most Chicagoans wouldn't bother with that commute when they could get jobs just as good in the Chicago area. It's mostly gonna be folks from Milwuakee.

 

[mattster16]

Yep. I live there. Can confirm that I’m pissed.

But also can confirm that we thankfully got the idiot that signed off on this deal out of office.

Everyone except for the Walker/Trump/GOP camp knew it was an absolutely horrible deal.

Don't worry though, those in the Walker/Trump/GOP camp will blame Nancy Pelosi and then turn around vote for the next Walker/Trump/GOP candidate.

 

[Stoutman11]

It’s still essentially taxpayers subsidizing jobs for a private company, a practice I’ll never understand. Basically we bought private jobs.

Wisconsin isn’t subsidizing anything if they (foxconn) doesnt meet the new jobs requirement so wheres the risk? Foxconn is putting in a lot of money to get this building built. They will have a large initial investment in this.

 

[NT1440]

Wisconsin isn’t subsidizing anything if they (foxconn) doesnt meet the new jobs requirement so wheres the risk? Foxconn is putting in a lot of money to get this building built. They will have a large initial investment in this.

“It will take until at least 2043 for the state to recoup that lost tax revenue, according to Wisconsin's estimates”
https://money.cnn.com/2018/06/28/technology/foxconn-wisconsin-plant/index.html


Yea, where’s the risk that a proposal reliant on the whims of a multinational corporation won’t hold up their end of the bargain over a nearly 30 recoup window?
I’m sure the state of Wisconsin has the funding to throw at a lawsuit against a giant conglomerate should things sour. Good guys and fully trustworthy these mega corporations are. /S

 

[applebreed]

Except that most Chicagoans wouldn't bother with that commute when they could get jobs just as good in the Chicago area. It's mostly gonna be folks from Milwuakee.

I know several people – most in the the north and northwestern suburbs – that work in WI. Also, there are several companies headquartered in Chicago area that have additional production facilities in southern WI.

 

[Stoutman11]

“It will take until at least 2043 for the state to recoup that lost tax revenue, according to Wisconsin's estimates”
https://money.cnn.com/2018/06/28/technology/foxconn-wisconsin-plant/index.html


Yea, where’s the risk that a proposal reliant on the whims of a multinational corporation won’t hold up their end of the bargain over a nearly 30 recoup window?
I’m sure the state of Wisconsin has the funding to throw at a lawsuit against a giant conglomerate should things sour. Good guys and fully trustworthy these mega corporations are. /S

Wisconsin did not give Foxconn $3billion up front. They decided the money would come at certain key job creation numbers. If those numbers are not reached they wont get the $3billion.

 

[hagjohn]

I am so surprised!!! Not!

 

[crescentmoon]

The old bait and switch... the fox conned the state....LOL

 

[szw-mapple fan]

As a Chinese citizen (you know, where the company is based), whose entire family is heavily involved in tech, I am more than intimately aware of The Facts. The stats you read on a spreadsheet aren't necessarily the reality.

The company is based in Taipei, so it’s Taiwanese, at least from a purely business point of view.

 

[JPack]

The U.S. doesn’t have a single LCD fab nor the related R&D or manufacturing experience. And people expected Foxconn to build a high tech LCD facility in the middle of nowhere? This whole thing was a PR campaign from day one.

Even if this proposed Gen 6 fab got built, it would be desperately behind current Gen 10.5 fabs. Not to mention OLED.

 

[CrystalQuest76]

The few will benefit and the majority will pay for it.
[doublepost=1548885245][/doublepost]

It’s still essentially taxpayers subsidizing jobs for a private company, a practice I’ll never understand. Basically we bought private jobs.

Taxpayers have been forced to pay for the construction of massive and rarely used buildings for private companies for decades. NFL, NBA, NBL, etc... It has allowed the private company owners to pay their top tier employees millions and not pay a thing for the buildings, and pocket billions.
What we are seeing with this news report is not different.
[doublepost=1548885340][/doublepost]

The company is based in Taipei, so it’s Taiwanese, at least from a purely business point of view.

Burger King is a Canadian company (and avoids paying american taxes) even though all their executives live and work in the United States.

 

[NT1440]

The few will benefit and the majority will pay for it.
[doublepost=1548885245][/doublepost]
Taxpayers have been forced to pay for the construction of massive and rarely used buildings for private companies for decades. NFL, NBA, NBL, etc... It has allowed the private company owners to pay their top tier employees millions and not pay a thing for the buildings, and pocket billions.
What we are seeing with this news report is not different.

Yup, I’m not for a second trying to claim this kind of crap is new. This is how our system operates, it’s socialism for the rich almost exclusively.

 

[ssgbryan]

Did the state really throw in everything they had before Foxconn even scratched the surface? Who makes these kinds of front loaded deals? They should have trickled the benefits with the company achieving certain milestones. I just hope the bozo government negotiators put in some clawback riders in there.

Scott Walker (R), College dropout, Wis. Governor

 

[szw-mapple fan]

The few will benefit and the majority will pay for it.
[doublepost=1548885245][/doublepost]
Taxpayers have been forced to pay for the construction of massive and rarely used buildings for private companies for decades. NFL, NBA, NBL, etc... It has allowed the private company owners to pay their top tier employees millions and not pay a thing for the buildings, and pocket billions.
What we are seeing with this news report is not different.
[doublepost=1548885340][/doublepost]
Burger King is a Canadian company (and avoids paying american taxes) even though all their executives live and work in the United States.

Different scenario. Foxconn was founded in Taiwan and the founder is Taiwanese. It has been in Taipei since the 1970s.