Wisconsin report: Foxconns LCD factory under construction

 Wisconsin report: Foxconns LCD factory under construction

If any LCD related manufacturing activities are to be carried out in the building, it is likely that only the final assembly of the components will be carried out. The impact of such a project on the local supply chain is much smaller, and the number of workers employed is far less than the 13000 expected in Foxconns contract with the government.

Its clear that the 6th generation LCD plant discussed and built at Mount Pleasant is not the same as other 6th generation LCD plants in the world, Wisconsin chief of administration Joel Brennan said in an interview on Wednesday local time Brennan said the state government released the report to solicit industry experts to better understand the scope of Foxconns current program and its potential impact on Wisconsin. The criticism of the former governor Walker team is justified because they signed the contract and didnt hire any industry experts from outside, Brennan said. This is to ensure that we are able to make the best possible decisions based on the best expertise within and outside the state government.

The report fully explains the reasons why Wisconsin still refuses to provide subsidies to Foxconn. Last week, the Wisconsin Economic Development Corporation (WEDC), which oversees contract execution, refused to pay Foxconn the first installment of the nearly $3 billion reimbursable tax credit on the basis that it did not build the 10.5 generation LCD plant under the contract.

The new analysis said that Foxconns current projects could not guarantee that the state government would pass the subsidy program at that time. So far, taxpayers have fully fulfilled their obligations under the agreement, but the beneficiaries have not, the report said In fact, local taxpayers spend as much money on improving infrastructure as Foxconn does.. It was previously reported that state and local governments had invested at least $400 million in the project, most of which was spent on land and infrastructure that may never be used. By the end of 2019, Foxconns capital expenditure will be about $300 million.

At present, it is impossible to predict whether the number of employees employed by Foxconn projects will reach the level specified in the contract. At the end of last year, the company hired 281 qualified employees, not 2080 in advance, and failed to meet the 520 needed to get tax subsidies. By the end of 2022, Foxconn should have employed 13000 workers. The survey found that Foxconn recruited a large number of local college students and foreign fresh graduates at the end of 2019 in an attempt to meet the employment threshold required for subsidies, but fired many employees just after the deadline. The report also points out that Foxconns employment has declined this year, and the number of recruitment surged before the deadline for the work report in December last year, and then decreased in the next few months. Therefore, the report believes that Foxconn has failed to fulfill its contractual obligation to maintain a certain level of employment for several years.

For more than a year, Wisconsin has been warning Foxconn that current projects are not eligible for subsidies, but the company has so far refused to amend the contract. There was no agreement after the settlement period expired this summer. WEDC has previously expressed its willingness to amend the contract.

I have expressed my commitment to you that I will help negotiate fair terms to support Foxconns new vision of substantial change, Missy Hughes, chief executive of WEDC, wrote to Foxconn after refusing to grant subsidies. The door to WEDC is still open to support your business expansion in Wisconsin.

Foxconn later issued a statement denying that employees were hired only for tax benefits.

Foxconn said, Foxconns business development in Wisconsin is like a growing annoyance, in which new business opportunities need to be explored to adapt to the changing needs of global customers and the growing global technology industry..

Foxconn said it was still committed to expanding its business in Wisconsin, but WEDCs refusal to subsidize threatened the good faith in negotiating the new contract.

Foxconn will work with those who see the company as a partner, Foxconn founder Terry Gou said in a statement on the same day Foxconn will continue to be committed to completing and expanding our projects and investments in Wisconsin, as long as policy makers at the federal, state and local levels remain committed to supporting Foxconn and promoting the companys investment in key technology development goals, as president trump has done. (Chen Chen)

Source: Qiao JunJing, editor in charge of Netease science and Technology Report_ NBJ11279