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Exclusive: Foxconn has revised the panel reversal plans for the LCD Wisconsin plant



(Reuters) – The Foxconn Technology Group is retrieving its advanced panel of liquid crystal display plans at $ 10 million on the Wisconsin campus and has said it wants to hire engineers and researchers more than manufacturing facilities rather than the project's original order.

PHOTO PICTURE: The logo Pala and FoxConn will be screened before the arrival of the President of the United States of America, Donald Trump, at Foxconn Technology Group on its LCD manufacturing campus in Mount Pleasant, Wisconsin, US, June 28, 2018. REUTERS / Darren Hauck

It was held in the White House in 2017, with a 20 million-square-meter campus investment in foreign companies in the United States, and President Donald Trump praised the resilience of American manufacturing.

Foxconn received slowly-in-progress and local incentives for the project. Initially, he planned to manufacture advanced television screens and other consumer and product products. He said instead of building smaller LCD displays.

Now, these plans may be scaled back or even lower, says Louis Woo, Foxconn's CEO, Terry Gou's special assistant, to Reuters. The company said that they were evaluating Wisconsin's options, but the high cost of advanced TV shows in the United States, where labor costs are comparatively high.

"As far as television is concerned, we do not have the U.S. place," he said in an interview. "We can not compete."

When manufacturing advanced TV screens, he added: "If a particular display size has more power supplies, from China, Japan or Taiwan, we have to change it".

Instead of focusing on LCD manufacturing, Foxconn wants to create a "technology hub" in Wisconsin, largely because research facilities do not include storage and assembly operations, as Woo said. Also, it would create specialized technological products for industry, health and professional applications, he added.

"We're not building a factory in Wisconsin. You can not use a factory to see our Wisconsin investment," said Woo.

This month earlier, Foxconn confirmed Apple Inc.'s most important provider of 13,000 jobs in Wisconsin, but slowed down the recruitment rate. The company said at the beginning of 2020 that about 5,200 people were expected to be employed; A business source said that now it would have about 1,000 employees.

It is unclear when 13,000 employees are hired.

But Woo talks about three-quarters of Foxconn's jobs in R & D and design, as "knowledge" positions rather than blue collar production. Foxconn is formally known as Hon Hai Precision Industry Co.

Instead of manufacturing LCD panels in the United States, Woo said China and Japan were bigger, importing the finished product to the United States to the last meeting in Mexico.

Foxconn said he represents a supply chain that is currently a "good and proper business model".

In the Foxconn project, Scott Walker was former governor, ensuring that Republicans contributed $ 4 million in tax and other incentives. The agreement's criticism, including the number of Democrats, was called the corporate giveaway, which never occurred to the manufacturing company and caused serious environmental hazards.

Business growth projections and employment goals suggest that taxpayers' investment may take up to 25 years to recover, according to the budget, the Wisconsin Budget Project.

Foxconn's CEO, Gouek, proposes to discuss the changes in the agreement with the new democratic Wisconsin government, along with Tony Evers, to discuss changes to the agreement this year, according to the source of the company's thinking.

It was not possible to get an Evers comment.

Currently, in the case of tax credits, Foxconn has to meet certain contracting and investment capital targets. It was shorter than the 2018 employment objective – 178 full-time jobs, more than 260, and a $ 9.5 million tax credit.

It may be possible to leave the business out of future incentives, if Wisconsin's job creation and investment requirements do not meet the source of the topic.

Report of Jess Macy Yu in Taipei and Karl Plume in Wisconsin; Edit Jonathan Weber and Paul Thomasch

Our rules:Thomson Reuters Trust Principles.

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