MADISON — Today the Nikkei Asian Review reported breaking news that Foxconn may be backing away from its promised plans for investing in Wisconsin, despite Gov. Scott Walker agreeing to give around $4.5 billion from Wisconsin taxpayers to the foreign corporation. Republicans planned a groundbreaking with Foxconn next month on June 28.
Examples of Foxconn breaking its commitments in other communities are documented below.
“Foxconn has a history of breaking promises to communities, which Gov. Scott Walker ignored as he forced Wisconsin into a shady Foxconn deal at lightning speed” said Democratic Party of Wisconsin spokeswoman Melanie Conklin. “Today’s news is another cause for serious concerns for Wisconsin taxpayers who don’t want to give $4.5 billion to Foxconn. It appears Foxconn may break promises to Wisconsin before they even break ground in our state.”
From the Nikkei Asian Review:
“OSAKA/TAIPEI — Hon Hai Precision Industry, better known as Foxconn Technology Group, is considering producing small to medium-size displays for Apple, carmakers and others to lower initial costs at its $10 billion factory in the U.S. state of Wisconsin, people familiar with the matter said.
Foxconn’s shift to making diversifying displays for cars, personal computers, tablets, mobile devices, televisions and niche products is a change from its previous plan to churn out large panels, mainly for TVs, at the new plant. Large panel production would have required a more complete local supply chain and greater initial investment in equipment.
The change in Foxconn’s plans comes as global panel makers face a glut of TV displays that will likely last for years, as many Chinese companies, including BOE Technology Group, are aggressively adding capacity…”
“Foxconn did not immediately respond to the Nikkei Asian Review’s request for comment. The official event to break ground is scheduled to take place on June 28 with Foxconn’s Gou and President Trump likely to attend the event, multiple sources said.
“…Foxconn’s new facility would still aim to supply Apple’s iPhones, although it is uncertain the company will be able to secure orders from the U.S. gadget maker.”
“It is not clear whether the total planned investment of $10 billion in Wisconsin would change at a later stage.” Full article here.
A History of Foxconn’s Broken Promises
In 2011, Foxconn promised to invest “billions” of dollars to build a manufacturing hub in Brazil with the project expected to create upwards of 100,000 jobs. As of 2017, Foxconn employed less than 3,000 workers. Areas where factories were supposed to be built are abandoned. “They haven’t even expressed an interest in meeting us,” said a local mayor.
In 2013, Foxconn promised to invest $30 million in a new factory in Pennsylvania that would employ 500 workers. Five years later, there is no factory and no jobs. “It just seemed to fade to black,” a local Pennsylvania official recalled.
In 2014, Foxconn promised to invest $1 billion to expand operations in Indonesia. A year later, Foxconn backed out.
In 2015, Foxconn promised a $5 billion investment in a factory in India that would employ 50,000 workers. Now three years later after a “big-bang” announcement, an Indian state official said “the proposal is practically off.”