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Foxconn’s plant could bring 3,000 to 13,000 electronics manufacturing jobs to Wisconsin.
For the most part, electronics manufacturing is done outside of the U.S. One of President Trump’s campaign promises was to bring manufacturing to America, and while firms like Taiwanese giant Foxconn have talked about building more factories in the U.S., action has been limited. Now, however, it’s been announced that a $10 billion Foxconn plant is coming to the state of Wisconsin.
CNN reports that Foxconn made the announcement at the White House in Washington D.C., with CEO Terry Gou, Wisconsin Governor Scott Walker, Vice President Mike Pence, and House Speaker Paul Ryan on hand and President Trump joining the group later. According to Walker, the plant will produce LCD panels and create 13,000 manufacturing jobs in the state when it comes on line in 2020.
In its own statement, Foxconn estimate that the factory will employ 3,000 with the “potential” to eventually create up to 13,000 positions.
This isn’t the first time that the company has announced plans to build a manufacturing facility in the U.S. The company announced a $30 million plant in Pennsylvania 2013 that hasn’t yet materialized, and shortly after President Trump took office, it also hinted at a $7 billion plant that could employ as many as 50,000 workers.
According to the Chicago Tribune, the Wisconsin project will be funded in part through $3 billion in state tax incentives, which will need to be approved by the legislature. The incentive plan includes $1.5 billion in income tax credits for job creation, up to $150 million in sales tax exemptions for construction materials purchases, and $1.35 billion in capital investment income tax credits. The full incentive payout will depend on Foxconn investing the stated $10 billion, and creating 13,000 jobs with an average salary of almost $54,000.
Governor Walker anticipates the plant’s impact on Wisconsin to be significant, saying about the huge 1.6 million square mile facility, “We’ve named it Wiscon Valley. It could be very much like Silicon Valley.” House Speaker Ryan, who represents Wisconsin, was also excited about the announcement, saying, “One thing we know about this president is how committed he is to reviving American manufacturing and bringing jobs home. This right here shows actual results.”
Ultimately, Wisconsin beat out a number of other states for the plant, including Michigan, Illinois, Indiana, Ohio, Pennsylvania, and Texas, due in part to nearby Lake Michigan, which will be able to furnish water needed to keep the plant clean. The facility will help make up for the recent loss of a General Motors factory, and it will buttress the state’s 472,000 manufacturing jobs.