Foxconn: a work in progress – from MMAC President Tim Sheehy

MMAC President Tim Sheehy

Yesterday you may have seen a number of news reports related to the Foxconn development, including: “Foxconn Reconsidering Plans to make LCD panels in Wisconsin.” This and other headlines related to Foxconn's plans understandably caught a lot of attention. As reported, some comments made by Louis Woo, Special Assistant to Foxconn Chairman Terry Gou, looked like a sharp deviation from what had been expected: “In terms of T.V., we have no place in the U.S., we can’t compete...”
 
Louis has communicated with me and stated in subsequent news reports that Foxconn has not shelved its commitment to invest in Wisconsin. He did note that due to the dynamics of their industry, the company is considering which thin-film-transistor technology to build in Wisconsin.

We are aware of the evolving dynamics and the changing nature of the employment mix on the Foxconn campus -- more engineering and design talent, and fewer “plant floor” jobs. Foxconn is an innovative company on the leading edge of a rapidly-changing industry, so it’s natural for their plans to evolve. We want Foxconn’s investment in Wisconsin to be successful, both for the Milwaukee Region and for them. As I’ve said before, you wouldn’t want to host the grand opening of a brand-new buggy-whip factory at the moment the first automobile rolls off of someone else’s assembly line.

It's important to note that the Foxconn/Wisconsin incentive contract remains intact, with job totals and capital investments driving the amount and type of incentives. The local infrastructure costs, including borrowing, are covered in a TIF contract, which earmarks property tax revenue from increases in assessed values on the local land. The contract stipulates, “If for any reason, Foxconn’s investment on the campus falls short, the company remains obligated to a minimum valuation of $1.4B, which will more than pay for all public improvement and development costs.”

To date, Foxconn has invested over $200M, and purchased properties in Milwaukee, Green Bay, and Racine. In addition, Foxconn has helped launch a $100M venture fund and made a $100M commitment to UW-Madison. We continue to support a successful Foxconn investment and will work to keep you updated on this important project.
 
Tim Sheehy
President of Metropolitan Milwaukee Association of Commerce

Following yesterday's Reuters story, Foxconn issued the following statement:
“Foxconn will be moving forward with plans to build an advanced manufacturing facility in Wisconsin”
- Foxconn