Foxconn’s plan to build an LCD fab in Wisconsin looks “dead,” according to one of the analysts hired by the state as a consultant on the project. According to a report in EE Times, the $10 billion investment project would have created as many as 13,000 jobs and helped bring high-tech manufacturing back to the U.S.
The Taiwan-based company that’s the world’s largest electronics contract manufacturer has failed to meet targets that would have qualified it to receive up to $19.1 million in job-creation tax credits. Foxconn founder Terry Gou said that the company’s commitment to the project depends on government aid for the project, according to a report in the Wall Street Journal.
In order to qualify for the maximum tax credits, Foxconn would have needed to employ 2,080 workers in Wisconsin and invest $1.3 billion in the state. While Wisconsin has denied Foxconn’s request for tax credits, it has offered to renegotiate the contract once the company is able to provide details of the proposed project such as its size, scope, anticipated capital investment and job creation.
In 2018, the Walker administration shifted up to $90 million in local road funding to road work related to the Foxconn factory, according to EE Times. Wisconsin also granted Foxconn special legal privileges.
At this stage, there’s no compelling reason to build an LCD fab in the US, Display Supply Chain Consultants (DSCC) CEO Ross Young told EE Times.
“We really don’t see the demand for US display production at this time. There is sufficient capacity still in China, Taiwan and Korea, and there is growing interest in India, which may see large subsidies and has much lower wages along with increased assembly demand.”
Source: EE Times & The Wall Street Journal
