Foxconn mostly abandons $10 billion Wisconsin project ...

Taiwan electronics manufacturer Foxconn is drastically scaling back a planned $10 billion factory in Wisconsin. Under a deal, Foxconn will ... SkipNavigationMarketsBusinessInvestingTechPoliticsCNBCTVWatchlistInvestingClubPROMenuKeyPointsTaiwanelectronicsmanufacturerFoxconnisdrasticallyscalingbackaplanned$10billionfactoryinWisconsin.Underadeal,Foxconnwillreduceitsplannedinvestmentto$672millionfrom$10billion,andslashthenumberofnewjobsto1,454from13,000.ThedealwasfirstannouncedattheWhiteHouseinJuly2017,withthen-presidentDonaldTrumpboastingofitasanexampleofhowhis"AmericaFirst"agendacouldreviveU.S.techmanufacturing.ConstructionatFoxconncomplexinMt.Pleasant,WisconsininAugust2020.BrianSnyder|ReutersTaiwanelectronicsmanufacturerFoxconnisdrasticallyscalingbackaplanned$10billionfactoryinWisconsin,confirmingitsretreatfromaprojectthatformerU.S.PresidentDonaldTrumponcecalled"theeighthwonderoftheworld."UnderadealwiththestateofWisconsinannouncedonTuesday,Foxconnwillreduceitsplannedinvestmentto$672millionfrom$10billionandcutthenumberofnewjobsto1,454from13,000.TheFoxconn-WisconsindealwasfirstannouncedtogreatfanfareattheWhiteHouseinJuly2017,withTrumpboastingofitasanexampleofhowhis"AmericaFirst"agendacouldreviveU.S.techmanufacturing.ForFoxconn,theinvestmentpromisewasanopportunityforitscharismaticfounderandthen-chairman,TerryGou,tobuildgoodwillatamomentwhenTrump'stradepoliciesthreatenedthecompany'scashcow:buildingApple'siPhonesinChinaforexporttoAmerica.Foxconn,theworld'slargestcontractmanufacturerofelectronicdevices,proposeda20-million-square-footmanufacturingcampusinWisconsinthatwouldhavebeenthelargestinvestmentinU.S.historyforanewlocationbyaforeign-basedcompany.VIDEO2:0702:07Only550hiresafterFoxconnpromised13,000jobsinWisconsinSquawkontheStreetItwassupposedtobuildcutting-edgeflat-paneldisplayscreensforTVsandotherdevicesandinstantlyestablishWisconsinasadestinationfortechfirms.Butindustryexecutives,includingsomeatFoxconn,werehighlyskepticaloftheplanfromthestart,pointingoutthatnoneofthecrucialsuppliersneededforflat-paneldisplayproductionwerelocatedanywherenearWisconsin.Theplanfacedlocaloppositiontoo,withcriticsdenouncingataxpayergiveawaytoaforeigncompanyandprovisionsofthedealthatgrantedextensivewaterrightsandallowedfortheacquisitionanddemolitionofhousesthrougheminentdomain.Asof2019,thevillagewheretheplantislocatedhadpaidjustover$152millionfor132propertiestomakewayforFoxconn,plus$7.9millioninrelocationcosts,accordingtovillagerecordsobtainedbyWisconsinPublicRadioandanalyzedbyWisconsinWatch.Foxconn,formallycalledHonHaiPrecision,saidthenewagreementgivesit"flexibilitytopursuebusinessopportunitiesinresponsetochangingglobalmarketconditions."Thecompanysaid:"Originalprojectionsusedduringnegotiationsin2017haveatthistimechangedduetounanticipatedmarketfluctuations."Afterabandoningitsplansforadvanceddisplays,Foxconnlatersaiditwouldbuildsmaller,earlier-generationdisplaysinWisconsin,butthatplannevercametofruitioneither.PriortoTuesday'sannouncement,FoxconnChairmanLiuYoung-waytoldreportersinTaipeithatthecompanycurrentlymakesservers,communicationstechnologyproductsandmedicaldevicesinWisconsin,addingthatelectricvehicles(EVs)havea"promisingfuture"there.Hedidnotelaborate.LiuhadpreviouslysaidtheinfrastructurewasthereinWisconsintomakeEVsbecauseofitsproximitytothetraditionalheartlandofU.S.automaking,butthecompanyalsocoulddecideonMexico.HonHaisharesfellasmuchas1.6%onWednesdaymorning,underperformingthebroaderTaiwanmarketwhichwasdown0.7%.IncentivesWisconsinGovernorTonyEverssaidthenewagreementwillsaveWisconsintaxpayers"atotalof$2.77billioncomparedtothepreviouscontract,maintainaccountabilitymeasuresrequiringjobcreationtoreceiveincentives,andprotecthundredsofmillionsofdollarsinlocalandstateinfrastructureinvestmentsmadeinsupportoftheproject."EverssaidunderthedealnegotiatedbetweentheWisconsinEconomicDevelopmentCorporationandFoxconn,theTaiwancompanyiseligibletoreceiveupto$80millioninperformance-basedtaxcreditsoversixyearsifitmeetsemploymentandcapitalinvestmenttargets.Hestressedthattheincentiveswereinlinewiththoseavailabletoanycompany.Thestatewillreducethetaxcreditsauthorizedfortheprojectto$80millionfrom$2.85billion.TheoriginalWisconsinpackagealsoincludedlocaltaxincentivesandroadandhighwayinvestmentsbystateandlocalgovernments,whichbroughttotaltaxpayer-fundedsubsidiestomorethan$4billion.Foxconnnotedthatsince2017,ithasinvested$900millioninWisconsin,includingseveraldifferentfacilitiesinthestate.Thestatehasalreadyspentmorethan$200milliononroadimprovements,taxexemptionsandgrantstolocalgovernmentsforworkertrainingandemployment,accordingtotherecordsobtainedbyWisconsinPublicRadio.TVWATCHLIVEWATCHINTHEAPPUPNEXT|ETListenTVWATCHLIVEWATCHINTHEAPPUPNEXT|ETListen