The local government's subsidy to Foxconn is nearly $1 billion higher than originally estimated. This means that the government’s subsidy for each of the 13,000 local employees Foxconn will pay is up to $307,692.
Since the state of Wisconsin announced that it took over Foxconn's new plant project for US$3 billion, the deal has been controversial. The truth finally surfaced before President Donald Trump attended the ribbon-cutting ceremony on Thursday—even if it was removed. With rising costs, Wisconsin cannot recover its investment in Foxconn within 25 years.
In order to win the $10 billion factory project, Wisconsin, county and town officials jointly launched nearly $4 billion in incentives and promised preferential treatment from subsidies to new roads and infrastructure around the plant. Of the $4 billion incentives, about $3 billion comes from income tax credits and business tax exemptions, and about $900 million comes from local incentives and improved funds. If the project fails, Wisconsin must repay 40% of public bonds, Foxconn Chairman Guo Taiming also Will take some personal responsibility.
As the “Wall Street Journal” reported, in this controversial transaction, Foxconn conducted multiple rounds of independent negotiations with local state and local governments. This is a 'bad practice' and the reason is obviously due to Foxconn’s insistence. The progress of the project should be announced as soon as possible. In addition, the infrastructure funds invested in Foxconn are drawn from other urgent highway projects. Wisconsin officials and legislators are an 'opportunity for decades' to this agreement. Still arguing, some people think that this investment will bring the state into a high-tech economy, while others think it is abusing public funds.
Bringing foreign manufacturing jobs back to the US is a top priority for the Trump administration, although the cost of doing so may be prohibitive. Most of Foxconn's factories are in Asia, including urban-scale integrated factories in China, where workers The wages are much lower than those in the United States. The job is mainly to assemble consumer electronics. Many of Apple's top brands are from Foxconn China. The Wisconsin plant is expected to produce LCD screens, which will employ 13,000 locals. Residents, specific information about the product to be announced.