Foxconn's big Wisconsin project hinges on unsecured government support
CGTN
Foxconn's headquarters are seen in Taipei, Taiwan, China. /Reuters

Foxconn's headquarters are seen in Taipei, Taiwan, China. /Reuters

Manufacturing giant Foxconn Technology Group, famous as Apple Inc.'s assembler, said its commitment to a multibillion-dollar factory investment in Wisconsin hinges on whether government officials deliver promised support for the project.

The planned $10 billion, 20-million-square-foot campus was hailed by the White House as the largest investment for a brand new location by a foreign-based company in U.S. history and had been cited by U.S. President Donald Trump in 2017 as proof he was reviving U.S. manufacturing. In the deal, Wisconsin was planning to give nearly $4 billion in state and local economic incentives to Foxconn. 

However, Wisconsin Economic Development Corporation (WEDC) said last week that Foxconn's planned factory in Mount Pleasant did not create enough jobs in 2019 to earn it tax credits, and also missed its targets in the second year.

Wisconsin officials denied Foxconn's request for the first payments in what had been envisioned as $3 billion in state subsidies for the technology complex.

According to the WEDC, Foxconn has hired only 281 people eligible for tax credits and has made only $300 million in capital expenditures, not fulfilling the goals set out in the contract signed by Foxconn and the state. 

In an statement reviewed by CGTN, Foxconn refuted allegations to hire employees to only achieve tax incentives and says it employs approximately 550 people, over 90 percent of whom are Wisconsin residents.  

"Foxconn is proud of the material contributions our company has made in Wisconsin as part of the $750 million we have already invested over the past three years, despite having never received any tax incentive payments from the Wisconsin Economic Development Corporation," the company said. 

"While we are disappointed with the WEDC actions, we are confident that Foxconn and WEDC will be able to resume discussions and work together to reach agreement that will support our efforts to bring smart manufacturing technologies and jobs to Wisconsin," Foxconn said. 

For many, the factory has become a symbol of failed promises in Midwestern states like Wisconsin that were key to Trump's 2016 election and are now closely watched swing states in the Republican's bid to be re-elected on November 3.

Foxonn founder Terry Gou said in a statement Monday that the Wisconsin project could be scaled back and might not be completed if state officials don't come through with promised aid, The Wall Street Journal reported.