Wisconsin Governor Scott Walker and Foxconn Technology Group Chairman Terry Gou on Friday officially signed what has been termed the biggest development deal in Wisconsin history, which will allow the Taiwanese company to build LED screen factories in the southeast of Wisconsin under state financial aid.
With the deal finalized, Foxconn will be set to invest US$10 billion in the development of screen manufacturing factories and industrial parks in Racine County, located in the southeast part of Wisconsin. The state has offered a total tax credit of US$3 billion as incentives for the development project.
The project is expected to create around 13,000 jobs after its initiation, which will be a big boost in the state’s economy, according to its backers.
According to the Wisconsin Economic Development Foundation, the annual payout by Foxconn is estimated to be around US$200 million and US$250 million.
This is by far the largest development deal, with the highest amount of state financial aid to a foreign corporation signed by a state in US history.
If Foxconn fails to fulfill the promises of the agreement, it will pay up to US$5 billion in compensation to the state of Wisconsin, says Foxconn Chairman Terry Gou.