Foxconn may release plans to build flat screens in Wisconsin
But the company says it continues to develop the Wisconsin property and still expects to employ up to 13,000 workers.
Although the new governor, Tony Evers, has been criticized by the package, he has not relied on the promises in the package.
Louis Woo, Special Assistant to Foxconn, CEO Terry Gou, told Reuters that the company was now planning to create a "technology hub" in Wisconsin instead of a factory. It will largely consist of research facilities together with some packaging and assembly operations. Woo said that three-quarters of Foxcon's any jobs would be in research and development and design, not work with blowers. He said it wouldn't be a factory.
Asked about the comments of Woo, a Foxconn spokesman did not doubt them.
"We remain committed to the Wisconsin Valley Science and Technology Park project, the creation of 1[ads1]3,000 jobs and our long-term investment in Wisconsin," the company said. "The global market environment that existed when the project was first announced has changed. As our plans are driven by our customers' needs, this has necessitated the adaptation of plans for all projects, including Wisconsin. While the project's focus will be adjusted to meet these new ones The reality, the Wisconsin project, remains a priority for our company. "
The state incentive package is ready to give the company up to $ 3 billion in tax credits and breaks. It is one of the biggest incentive packages ever promised a company to find a plant in the United States. And according to Wisconsin's estimates, it will take at least 2043 for the state to receive the lost tax revenue.
The state incentive package allows Foxconn to adapt its plans as a result of changing business relationships, says Mark Hogan, CEO of the State Independent Economic Development Agency, which negotiated the package. He added that the company's success depends on its ability to respond to change in customer demand.
Hogan also noted that Foxconn will only get the full incentive package if it hits all the goals of job creation and government investment.
"Our ongoing discussions with company officials reflect Foxconn's continued commitment to the state of Wisconsin," Hogan said.
But the governor's office issued a statement that said it was surprised to learn about the change in the plans of Foxconn.
"Details of the continued development of this project will require further review and evaluation by our team," said Joel Brennan, who has been nominated to oversee the state office handling the package. He said the state "will continue to monitor the project to ensure that the company delivers its promises."
The village of Mount Pleasant and Racine County, where the facility will be built, has also agreed to provide $ 764 million in tax incentives to get the facility built, including buying the land and giving it to Foxconn for free. The state expects to spend about $ 400 million on road improvements, including adding two lanes to nearby Interstate 94.
It is not clear whether the shift in facility focus would change the incentive package based on the number of jobs created and the amount of investments. Foxconn had originally planned to invest $ 10 billion in the plant.
Foxconn is best known for its massive plants in China that make products like iPhones for other companies.
"The construction of this plant represents the return of LCD electronics and electronic production to the United States, the country we love," Trump said at that time. "This is where we want our jobs. To make such an incredible investment, President Gou puts his faith and confidence in the future of the American economy – in other words, if I wasn't elected, he would definitely not be."
CNNs Jeremy Diamond contributed to this report.