Foxconn has been punished by US media for a record 28 billion 500 million subsidy in the US.

category:Hot click:501
 Foxconn has been punished by US media for a record 28 billion 500 million subsidy in the US.


On the 29th, the American media The Verge published an article of more than 20,000 words denouncing Wisconsins $4.1 billion (28.5 billion yuan) giant subsidized panel factory as meaningless.

Soon after the breaking of the ground, the factory admitted that the downgrading of the production line not only violated the agreement, but also made the state government doubt whether the investment could be recovered. Despite Foxconns insistence that it will abide by its commitment to invest $10 billion and employ 13,000 people, the outside world remains unconvinced.

Public opinion and Wisconsin Democrat candidate Tony Evers expressed strong dissatisfaction. Scott Walker, the incumbent Republican governor of Foxconns talks in the United States, has remained silent about when to recover costs, how to assess feasibility, and what environmental measures have been taken to build the plant.

Less than a week before the mid-term elections (November 6), the last round of the Marquette poll showed that the two candidates were on the same page.

Left is Tony Evers, right is Scott Walker.

Wisconsins huge 4 billion 100 million dollar subsidy to Foxconn is meaningless. TheVerge reported screenshots, the same below

The Walker administration has never commented on repeated doubts about when taxpayers will withdraw their subsidies to Foxconn.

The Walker administration has not commented on how to assess the feasibility of Foxconns initial plan, he said.

The Walker administration will not comment on what environmental measures it has taken.

Huge subsidy recovery into doubt

According to the agreement, Foxconn has committed $10 billion to build a 10.5-generation LCD plant in Mount Pleasant (WI) and create 13,000 jobs, according to Observer. com.

In addition to the $3 billion subsidies promised by the Wisconsin government, the Racine County, where the plant is located, added $764 million in tax incentives by December 2017, cost $164 million in road and highway support, and $140 million in transmission networks.

The report mentions that this subsidy is not only the history of Wisconsin, but also the highest subsidy ever given to foreign companies by the U.S. government.

Location map of joyful mountain in rahsing County, Wisconsin

It is calculated that, with the rest of the expenditure, every household in Wisconsin will contribute nearly $1774 to the project.

Like most states, Wisconsin used to subsidize businesses, which translated into $35,000 per job, while Foxconn enjoyed nearly $315,000 per job.

Because Walker cut the states corporate income tax to zero in 2011, this means that $4.1 billion in subsidies will be paid back by Foxconn employeesincome tax, and the return on investment will be even later than 2050.

University of Georgia professor Jeffrey Dorfman (JeffreyDorfman) put forward a more frightening view.

In Forbes magazine, he wrote, The return period of $100,000 per unit is not 20 years, nor 42 years, but hundreds of years, or even never. Not to mention the plight of Wisconsin.

Despite repeated requests from the media for the Walker government to respond to the timetable for the withdrawal of subsidies, the latter has remained silent.

At a time when the local governments surprising preferential measures puzzled the public, Foxconns revision of its investment plan caused a heated debate.

China time news report screenshot

Only three days after President Trump arrived on June 28 to help Foxconn lay its foundations (July 1), Taiwans Zhongshi E-Newspaper confirmed that the project would start with a six-generation panel factory because, in addition to the high investment cost and lack of talent, Coring could not successfully supply the super-large size needed for 10.5-generation panels. Inch glass substrate and other factors.

Observer network has learned that these two levels of production line use completely different production technologies. Among them, the 6 generation line products can only supply televisions below 39 inches, while the 10.5 generation lines can produce 65-75 inch screens.

However, according to the report, this action was understood by the local state government, and the other side showed respect for Guo Taimings professional judgment and decision-making.

We are not interested in television, Louis Woo, Foxconn chairmans special assistant, told the Racine Journal Times on August 22.

Instead, Hu said workers at the Wisconsin plant would focus more on building an ecosystem using Foxconns display, cellular networks and artificial intelligence technologies. He called it ai 8K+5G.

But the state government has yet to explain to the media how it assessed the feasibility of Foxconns original plan.

This is the first rumor of project change since its appearance in May. Foxconn subsequently disclosed the facts in the local media, but Hon Hai Group still insisted on the effectiveness of its commitment to total investment and employment, only to adjust the construction sequence of production lines.

A large number of 182 full-time jobs are management.

In response to the composition of the factory staff, Hu Guohui said frankly: If you asked me six months ago, I would refer to our organization in China, about 75% of the assembly line workers, plus 25% of the engineers. But now it seems that only 10% of the assembly line workers and 9 of the knowledge workers are needed. Almost all assembly work will be carried out by robots.

It is not hard to imagine that the adjustment of production line determines the employment demand of enterprises. Although it does not seem to affect the total investment, there are new requirements for jobs.

In this way, local politicians thought Foxconn could get low-skilled, ethnic workers in Milwaukee and Racine County to work, but their hopes were ended, says The Verge.

However, Walker did not comment on the changes in Foxconn plants production line and recruitment needs.

Screenshots of indeed.com

Foxconn factories currently offer 182 full-time jobs, with 153 jobs estimated to be earning no less than $55,000, mostly managers, according to an online search site actual.com.

According to the Washington Post, The same result has been found in Vietnam, where Foxconn pledged to invest $5 billion in 2007 and in Brazil, Foxconn said it would invest $10 billion in 2011.

And in Pennsylvania, Foxconn promised to invest $30 million and hire 500 workers, but that promise never materialized.

Trump and Walker need a great victory.

Ultimately, a huge subsidy for Foxconn to build factories in the United States is Trumps personal visit to the ceremony site in order to realize the slogan Make American Great Again. Secondly, the project also aims to fulfill the employment commitment of current Governor Walker when he was elected, and as a boost to his pursuit of a third term.

Local time on June 28th, Trump went to Foxconn factory to start the ceremony. Left is Scott Walker. Photo source: visual China

When he was elected governor in 2010, Walker pledged to create 250,000 new jobs in his first term of office, according to The Verge. But 6 years later, he is still far from that goal. In order to win the third term of office in 2018, Walker desperately needs a great victory.

The production of LCD panels requires a lot of water, and several states in the five Great Lakes entered the competition very early. In order to succeed in investment, Walker also did his best in the negotiations.

Michigan, the closest state to the offer, is willing to provide only $2.3 billion in tax subsidies, and non-cash subsidies.

The Ohio governor, Republican John Kasich, even condemned the deal: If were going to spend 40 years recovering the cost of investing, were not going to invest!

The report also cited local opinion polls, which showed that most Wisconsin voters did not believe subsidies would pay off taxpayers, so Walker did not mention the project when he announced his campaign last November.

I want to reconsider Foxconn air emissions permit

Governors Debate: Evers Questioned Foxconns Air Emissions. Democratic governor candidates said that emissions permits should be re-examined, Walker said it was unnecessary. Report screenshot

According to the local media Urban Milwaukee on the 29th, if Evers wins, the Wisconsin Department of Natural Resources may review the emission permits of Foxconn plants.

Walker had previously responded that there is no need... the factory project has passed the review... the rapid licensing process is positive and what the business wants.

In May, the Illinois Attorney General also appealed to the U.S. Federal Environmental Protection Agency about Foxconn is exempt from national pollution standards, because Scott Pruitt, the former director, had overturned the pollution standards set by the Obama administration. That gives Foxconn more room for maneuver.

At the end of the article, Walker did not comment on the matter.

Foxconns submission to the Department of Natural Resources in Wisconsin shows that the former will produce hundreds of tons of carbon monoxide, particulate matter, sulfur dioxide, nitrogen oxides and volatile organic compounds per year.

In addition to air pollution, Professor Peter Adriaens of the University of Michigan says benzene, chromium, cadmium, mercury, zinc and copper are needed to produce LCDs. If emissions are not appropriate, these materials are dangerous.

Foxconn told The Verge that it would establish a Zero Liquid Discharge System, which is better than any local, state or federal government requirement for industrial wastewater discharge.

However, the article points out that Walker has opened up local general environmental restrictions to Foxconn, allowing it to discharge waste into wetlands during construction and operation, changing the flow of rivers and exempting it from environmental impact reports.

The state government also allowed Foxconn to draw water from Lake Michigan. The latter has an average daily water consumption of 7 million gallons, of which 39% will be lost by evaporation. Environmentalists accused it of violating the Great Lakes Compact signed by the Great Lakes States and Canadian provinces and proposed legal action to stop it. Despite Foxconns announcement to the media that it will do its utmost to reduce pollution, The Verge has chosen to point the finger at the state: Walker has yet to respond to what environmental measures are being implemented. Source: observer net responsibility editor: Zhao Yaping _NN9005

The state government also allowed Foxconn to draw water from Lake Michigan. The latter has an average daily water consumption of 7 million gallons, of which 39% will be lost by evaporation. Environmentalists accused it of violating the Great Lakes Compact signed by the Great Lakes States and Canadian provinces and proposed legal action to stop it.

Despite Foxconns announcement to the media that it will do its utmost to reduce pollution, The Verge has chosen to point the finger at the state: Walker has yet to respond to what environmental measures are being implemented.