Foxconn says Wisconsin facility will do both manufacturing and R&D

AppleInsider said:

Foxconn's $10 billion facility in Wisconsin will handle both manufacturing and research, the company said on Friday, trying to staunch controversy over statements it made earlier this week.

President Trump helping to break ground.

The complex will operate as an "advanced manufacturing facility as well as a hub of high technology innovation," Foxconn told CNBC. The company said it made a decision after talks with the White House, including a direct conversation between President Trump and Foxconn chairman Terry Gou.

"Our decision is also based on a recent comprehensive and systematic evaluation to help determine the best fit for our Wisconsin project among TFT technologies," it added. "We have undertaken the evaluation while simultaneously seeking to broaden our investment across Wisconsin far beyond our original plans to ensure the company, our workforce, the local community, and the state of Wisconsin will be positioned for long-term success."

Earlier this week an assistant to Gou said the company was altering its original plans to focus more on research and engineering. The company received some $4 billion in tax breaks with the expectation that it would build LCD TV panels -- the assistant however said that Foxconn has "no place" in the U.S. TV market since it "can't compete."

Foxconn is Apple's main assembly partner, headquartered in Taiwan and operating mostly out of China. The company has been vague on its plans for Wisconsin, sometimes leading to speculation a U.S. factory could help serve Apple.

Its goals continue to include hitting 13,000 jobs, but hiring has slowed to the point that only 1,000 workers will come onboard by the end of 2020, instead of the original target of 5,200. It also hired just 178 people in 2018, missing the 260 it needed to get the first $9.5 million in tax credits.

Read Foxconn's full statement:

After productive discussions between the White House and the company, and after a personal conversation between President Donald J. Trump and Chairman Terry Gou, Foxconn is moving forward with our planned construction of a Gen 6 fab facility, which will be at the heart of the Wisconn Valley Science and Technology Park. This campus will serve both as an advanced manufacturing facility as well as a hub of high technology innovation for the region.

Our decision is also based on a recent comprehensive and systematic evaluation to help determine the best fit for our Wisconsin project among TFT technologies. We have undertaken the evaluation while simultaneously seeking to broaden our investment across Wisconsin far beyond our original plans to ensure the company, our workforce, the local community, and the state of Wisconsin will be positioned for long-term success.

We look forward to continuing to expand our investment in American talent in Wisconsin and the US.

No mention of the number of jobs this time. Interesting 

Well people from the state has been bending backwards to get Foxconn to open that factory. Let's hope they get as much as they can from the deal.

gutengel said:

Well people from the state has been bending backwards to get Foxconn to open that factory. Let's hope they get as much as they can from the deal.

If it wasn’t mutually beneficial, nothing would happen. Business is business.

Interesting word salad after Trump and Gou spoke.  I doubt anything has changed.  If Foxconn can make money using the new facility manufacturing something they will, if not they won’t.

gutengel said:

Well people from the state has been bending backwards to get Foxconn to open that factory. Let's hope they get as much as they can from the deal.

<i>

Its goals continue to include hitting 13,000 jobs, but hiring has slowed to the point that only 1,000 workers will come onboard by the end of 2020, instead of the original target of 5,200. It also hired just 178 people in 2018, missing the 260 it needed to get the first $9.5 million in tax credits.</i>

I am sure that the smartphone sales decrease played no small part in this decision.  The market of smartphones is pretty much as full as it's going to get; there are not hordes of people out there who do not possess a smartphone - and are going to get one this year.  We will see some continued sales, but the acceleration has all but stopped.  Why invest $10 Billion if sales numbers don't support them?  But, to be fair; this was not known in 2018, when the deals were being struck.  And Foxconn has missed $9.5 Million in tax credits; by failing to hire the people they needed in 2018.