Last week, the Wisconsin Economic Development Corporation (WEDC) rejected the tax subsidy application of the electronics manufacturer Foxconn for failing not only to hire the number of employees he promised, but also to build an LCD 10.5 LCD factory. Instead, the company built a Gen 6 facility to produce telephone screens instead of a larger TV display factory and hired only 550 of the 13,000 employees it needed, 281 of whom did not meet the terms of the contract. But now, a report from On the edge confirmed that the Gen 6 facility is not used for production at all.
In an interview with The Verge, Wisconsin administration secretary Joel Brennan said it was clear “Gen 6, which was discussed and built in Mount Pleasant, is not like other Gen 6 fabs around the world.”
Basically, this is a fake factory. The building is there, but nothing is being done.
According to a report from Wisconsin’s executive budget and finance department, Foxconn not only did not purchase the necessary production equipment for LCD production, but is currently using the facility as storage space. If production were to take place in the building, it could only accommodate the final assembly of components – LCD and other telephone parts would be sent to the facility and then assembled there.
In an interview with The Verge, Wisconsin Secretary of State Joel Brennan said the industry was new to Wisconsin and had “justified criticism of [former Governor Scott] Walker administration to enter into this contract. “External experts have not been consulted and there seems to have been no in-depth discussion on how a contract like this would affect the community, even if it is particularly viable, given that LCD production is not something that has not actually been studied. in Wisconsin before.
The fake factory will definitely not produce the 13,000 jobs Foxconn needs to receive its subsidies. This may also explain why the company has hired so few people to date. If the final assembly is the only thing that takes place in the facility, it would not require anywhere near the same number of employees as a full-fledged factory.
To make matters worse, Foxconn claims to have hired local students and recently graduated visas in a futile attempt to boost its employment, according to investigation from The Verge. Foxconn failed to hire enough people to receive its subsidies, so many of these new rents were fired after the deadline. Many of them were also hired without any work.
This is a somewhat surprising end to a deal that shouldn’t have happened at all. In 2019, Foxconn had decided not to build a factory in Milwaukee, Wisconsin, even after buying an office building of 500 people. The company then told Gizmodo that global market factors had changed their plans. But 24 hours later, after a phone call with President Trump, Foxconn executives took a look and decided to continue building the factory. He probably should have just walked away, given how much of an unnecessary headache this whole saga had become.