Wisconsin Warmly Welcomes Foxconn With USD3 Billion in Financial Incentives
Dou Shicong
DATE:  Sep 19 2017
/ SOURCE:  Yicai
Wisconsin Warmly Welcomes Foxconn With USD3 Billion in Financial Incentives Wisconsin Warmly Welcomes Foxconn With USD3 Billion in Financial Incentives

(Yicai Global) Sept. 19 -- The state of Wisconsin has approved a plan to provide USD3 billion in financial incentives to Taiwanese electronic equipment manufacturer Foxconn Technology Group [TPE:2354] through USD2.85 billion of cash payments and USD150 million in tax exemptions.

Despite pushback from Democrats, the Republican-controlled legislature gave its okay in the end, and Governor Scott Walker signed a bill that will grant the largest subsidy provided by a state to a foreign company yesterday.

Foxconn said on July 27 that it would invest USD10 billion in Wisconsin to build a liquid-crystal display panel plant during the next four years. The factory may provide between 3,000 and 13,000 jobs for the state.

The state may need until 2043 to recoup its costs on Foxconn's manufacturing facility, and local taxpayers could chip in USD1 billion more to the firm than the additional taxes that the deal generates, the Legislative Fiscal Bureau of Wisconsin said in a report.

Founded in 1974, Foxconn has more than 1.2 million employees globally, and over 200 subsidiaries in Asia, America and Europe. It is a key Apple Inc. [NASDAQ:AAPL] supplier.

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Keywords:   FOXCONN,Wisconsin,Financial Incentives,Local Legislation