Largest corporate attraction project in U.S. history as measured by jobsAll Articles
Foxconn Technology Group (Foxconn), the world’s largest electronics manufacturing services provider, will invest $10 billion by 2020 to build a world-class manufacturing campus in Southeastern Wisconsin.
The campus will create 13,000 new jobs in the state and represents the largest new greenfield investment made by a foreign-based company in U.S. history. The jobs will have an average salary of $53,875, plus benefits. In addition to the 13,000 jobs directly created by Foxconn, the project is expected to create at least 22,000 indirect and induced jobs throughout the state.
Mr. Trump joined Foxconn’s chairman, Terry Gou, at the White House for an announcement on Wednesday, with two Wisconsin Republicans, Gov. Scott Walker and Paul D. Ryan, the House speaker, in attendance.
The company did not identify exactly where the plant would be built but said it would be in Mr. Ryan’s district in southeastern Wisconsin. With a floor area of 20 million sq. feet, the Foxconn campus will be large enough to hold 11 Lambeau Fields, occupying a footprint three times the size of the Pentagon. It will become one of the largest manufacturing campuses in the world — eclipsing the New Century Global Center in Chengdu, China, the Tesla Gigafactory in Sparks, Nevada, and the Boeing facility in Everett, Washington.
Mr. Walker said that Foxconn would receive $3 billion in tax breaks and other subsidies over the next 15 years from the state. The maximum amount of credits Foxconn will be eligible to earn is as follows: up to $1.5bn in state income tax credits for job creation, up to $1.35bn in state income tax credits for capital investment and up to $150 million for the sales and use tax exemption (sales tax holiday). The incentives are projected to cost between $200 million and $250 million a year. Once the company is fully staffed, Foxconn’s payroll will be an estimated $700 million a year.
The project will require an estimated $10 billion of capital investment to construct and equip the facility. Of this, an estimated $5.7 billion will be for construction and equipment sourced from Wisconsin businesses. The project will support 10,000 construction jobs over each of the next four years as well as 6,000 indirect jobs from the construction. The capital investment during construction is expected to generate $348 million in state and local tax revenues.
Employees at this new facility will manufacture state-of-the-art liquid crystal display (LCD) screens which will be used in everything from self-driving cars to aircraft systems and in the fields of education, entertainment, healthcare, safety and surveillance, advanced manufacturing systems, and office automation, among others. Foxconn is a global leader in manufacturing services for the computer, communication, and consumer electronics (3C) industry – championing innovation that touches the daily lives of people around the world.
“We are thrilled to build a state-of-the art display fabrication plant in America’s heartland, which will be the first of a series of facilities we are building in several U.S. states as part of a robust 8K+5G ecosystem in the United States,” said Foxconn Founder and CEO Terry Gou. “We thank President Trump and Governor Walker for their work to bring Foxconn to Wisconsin. Wisconsin offers a talented, hardworking workforce, and a long track record in advanced manufacturing, all of which presents an extraordinary opportunity.”
Foxconn first established operations in the United States in 1988 and has facilities and offices in Alabama, California, Indiana, Massachusetts, Michigan, North Carolina, Pennsylvania, Texas, and Virginia. Their operations include manufacturing, assembly and R&D facilities, as well as offices which are involved in sourcing from U.S. supply chain partners, product servicing, and manufacturing sales.
Taiwanese Foxconn Technology Group is the world’s largest electronics manufacturing services (EMS) provider with annual revenues exceeding $141 billion last year and a global workforce of approximately one million employees. The company has facilities in Asia, Latin America, and Europe.
Foxconn also is a leader in research and development, focusing on fields of nanotechnology, heat transfer, wireless connectivity, material sciences, and green manufacturing process. The company has several research centers and testing laboratories and has received more than 55,000 patents worldwide. The company is a recognized leader of innovation and technical knowledge in rankings such as MIT's or IPIQ’s patent scorecard.
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