Curtailed Deal Brings ‘Sad End’ to Foxconn’s LCD Ambitions in Wisconsin

Stark differences abound between the contract then-Wisconsin Gov. Scott Walker (R) signed with Foxconn in November 2017 to build a Gen 10.5 LCD fab and bring 13,000 jobs to his state (see 1711130023) and the sharply curtailed deal Walker’s successor, Gov. Tony Evers (D), renegotiated with Foxconn this week. Under the contract with Walker, Foxconn would have collected up to $2.85 billion in cash credits from Wisconsin, equaling 15% of what it spent on construction and 17% of its payroll costs, if it brought the project to full-scale operations by 2022. The agreement with Evers caps Foxconn’s cash credits at $80 million, based on a projected workforce of 1,454 employees -- 11% of what the contract envisioned less than four years ago under a different governor. The only constant between the two deals is the $53,875 average wage Foxconn is obligated to pay to qualify for any cash credits. But gone are the aspirations to build the Gen 10.5 fab. In its place is a vague agreement for Foxconn to use its giant campus in southeast Wisconsin for “economic investment activities related to locating and operating a technology and manufacturing ecosystem.” Said Display Supply Chain Consultants President Bob O’Brien, who followed Foxconn’s Wisconsin LCD ambitions closely: “Looks like a big win for the governor, and a sad end to the Eighth Wonder of the World.” That’s how Foxconn and Wisconsin officials had dubbed the project at the 2017 contract signing.