TAIPEI (Taiwan News) — Foxconn Technology Group, the world's largest contract electronics maker, has agreed to scale back its manufacturing project in the U.S. state of Wisconsin and take fewer state tax credits than originally agreed upon.
Along with Wisconsin Governor Tony Evers, the company announced Monday (April 19) that it has reached a new deal with state officials on its future manufacturing plant near the city of Racine. Although details have not yet been released, the deal is scheduled to be approved on Tuesday (April 20) by the Wisconsin Economic Development Corp.
A source familiar with the new contract who spoke on the condition of anonymity said the downsized project will reduce the potential tax breaks for Foxconn by billions of dollars. However, the company could still receive more than US$10 million in state tax credits under the new agreement, the source said.
Foxconn has faced intense scrutiny over the last three years for failing to live up to promises it made in its original 2017 agreement, including employing up to 13,000 people. State officials had told the Taiwanese manufacturer that it would not qualify for subsidies under the existing contract and that a new one was necessary.
Foxconn Vice Chairman Jay Lee (李傑) said the company had approved the new deal with the hope of lowering taxpayer liability in exchange for the flexibility to explore business opportunities that meet market demand. He said Foxconn was grateful to find the solution.