Foxconn, a Taiwanese electronics company, significantly scaled its factory from Wisconsin supposed to be worth $10 billion. The company confirmed stepping back from the project referred to as “the eighth wonder of the world” by former president Mr. Trump.
The deal was initially announced in July 2017, amid a huge gathering in the White House. The Foxconn-Wisconsin deal was praised by Mr. Trump as an example of his “America First” agenda capable of reviving technology manufacturing in the US.
However, the deal between the company and the state has now reduced the investment to $672 million and cut the jobs to 1,454 from 13,000, as announced by the state. The deal was a chance for Terry Gou (then-Chairman and founder of Foxconn) to gain goodwill right at the time when Mr. Trump’s trade policies scared the company’s move to make Apple’s iPhones in China and export them to America.
Renowned as the world’s biggest contract manufacturer of electronic gadgets, the company initially proposed the largest manufacturing campus in Wisconsin. The 20 million sq. foot campus from Foxconn could have been the largest investment by a foreign company in the US for new locations if built.
Previously known as Hon Hai Precision Industry, Foxconn released a statement saying, “original projections used during negotiations in 2017 have at this time changed due to unanticipated market fluctuations.” The statement also read that the present agreement allows it to continue its operations following the changing market scenarios.
The initial proposal from Foxconn faced criticism from several people, including industry executives from and off the company. There was even opposition and denouncement from locals too, based on the water rights, acquiring and demolishing the buildings for constructing the camp. As from recorded data, the village was allotted only $152 million for properties and $7.2 million for relocating as of 2019.
As soon as the company dropped its ideas for advanced displays, Foxconn released a statement saying it would now have previous generation displays in Wisconsin that would be smaller than the initial plan. However, this proposal was also ignored without execution.
The proposal was once lauded by Mr. Trump that it would create nearly 13,000 jobs for the unemployed. Before the latest announcement from Tuesday, the company’s chairman Liu Young said that Foxconn is making products for communication technology, servers, and medical products in the Wisconsin state.
He also said that electricity-based vehicles will have a “promising future” in the state, but didn’t describe anything further.