Top Taiwanese electronics manufacturer Foxconn is scaling back investment in its planned US$10 billion factory in Wisconsin. US President Donald Trump had once called the original investment plan the “eighth wonder of the world”.
Foxconn announced on Tuesday that it will scale down its investment to US$672 million. This will reduce the number of jobs created to 1,454, down from the 13,000 originally planned. Foxconn says the new agreement gives it “flexibility to pursue business opportunities in response to changing global market conditions.” The company says “original projections used during negotiations in 2017 have at this time changed due to unanticipated market fluctuations.”
Wisconsin Governor Tony Evers says the new agreement will save Wisconsin taxpayers “a total of $2.77 billion compared to the previous contract, maintain accountability measures requiring job creation to receive incentives, and protect hundreds of millions of dollars in local and state infrastructure investments made in support of the project.”
Evers said in a statement that Foxconn will qualify for US$80 million in state tax credits if it manages to invest US$676 million and employ 1,454 people with an average wage of US$53,875 by 2026.
Since 2017, Foxconn has invested US$900 million in Wisconsin.