Posted by alphaatlas 11:19 AM (CST)
Wednesday January 30, 2019
A report from Reuters suggests that Foxconn Technology Group is "reconsidering" their previously announced plans to manufacture LCD panels in Wisconsin. Instead of hiring factory workers, Foxconn may bring on more researchers and engineers to the Wisconsin Campus, turning it into a "technology hub" instead of a manufacturing center. Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, told Reuters that "In terms of TV, we have no place in the U.S.," and that they "can't compete," pointing to high U.S. labor costs and other factors.
Rather than manufacturing LCD panels in the United States, Woo said it would be more profitable to make them in greater China and Japan, ship them to Mexico for final assembly, and import the finished product to the United States... Currently, to qualify for the tax credits Foxconn must meet certain hiring and capital investment goals. It fell short of the employment goal in 2018 - hiring 178 full-time jobs rather than the 260 targeted - failing to earn a tax credit of up to $9.5 million. The company may be prepared to walk away from future incentives if it is unable to meet Wisconsin's job creation and capital investment requirements, according to the source familiar with the matter.