(Yicai Global) Nov. 8 -- Foxconn Technology Group, the world's largest contract electronics maker, has denied reports that it is looking to hire Chinese engineers at its Wisconsin factory.

The Taiwanese manufacturer, best known as one of Apple's core iPhone suppliers, is prioritizing local recruitment in Wisconsin and seek to employ workers from other American states, it told National Business Daily.

A report from the Wall Street Journal earlier this week cited sources familiar with the matter as saying that the firm was planning to take on Chinese workers due to a squeeze in the American labor market.

Wisconsin has the tightest employment level among US states. Its jobless rate was 3 percent in September, its lowest in 49 years and far below the 3.7 percent national average the same month.

United States President Donald Trump announced in July 2017 that Foxconn would invest USD10 billion to build the factory, creating 13,000 blue-collar jobs. The firm got a USD4.5 billion tax break from the local and state governments on the premise that it meets targets set for recruitment, wages and investment.

Competition from China meant Foxconn could never operate the factory as it originally intended, so it switched to focus on artificial intelligence, 8K displays and 5G telecommunications. The strategy involved relying heavily on automation and hiring just 10 percent of the staff for the factory floor, with the remainder being "knowledge workers," according to Business Insider.

Editor: James Boynton