Taiwanese contract electronics manufacturer Foxconn Technology Co. will dramatically scale back its planned investment in an initially planned $10 billion Wisconsin plant, under an agreement announced with the state.
Wisconsin will reduce its tax credits authorized for the project from $2.85 billion to $80 million as Foxconn reduces its planned investment from $10 billion to $672 million and cuts the number of jobs planned from 13,000 to 1,454, according to Wisconsin Gov. Tony Evers.
Under the amended terms, Foxconn’s $672 million projected investment is still one of the largest economic development projects on the books at WEDC and provides a framework and foundation for future growth and investment.
- Provides $80 million in performance-based tax incentives to Foxconn. Foxconn has target job creation of 1,454 qualified workers earning an average wage of $53,875 and target capital expenditure investments of $672 million by 2026. The terms also memorialize the potential for future investment and additional tax incentives.
- Gives a broader project definition that allows Foxconn, like other manufacturers in the state, to earn tax incentives based on job creation and capital investment regardless of the type of products and goods manufactured.
- Gives Foxconn the ability to add affiliates to the agreement and make such affiliates eligible for tax incentives.
- Preserves benefits of the Electronics and Information Technology Manufacturing Zone, including Market-Based Energy Rates and Sales and Use Tax Exemptions.
Since the inception of this project, Foxconn has invested approximately $900 million dollars in Wisconsin inclusive of all expenditures. A part of this investment has been the construction of Foxconn’s nearly 1 million-square-foot Advanced Manufacturing Facility, an approximately 300,000-square-foot Smart Manufacturing Center, an approximately 120,000-square-foot Multipurpose Building and an approximately 100-foot tall High Performance Computing Data Center globe. Over 3,500 construction jobs have been created as part of the Park development, representing some 300 Wisconsin businesses who have received approximately 90 percent of all construction contract value.
Foxconn's 3+3 corporate vision now focuses on electric vehicles, digital health, and robotics using AI, semiconductors, and 5G technologies.