Foxconn’s US Factory Could Produce iPhone LCD Panels; $3 Billion Tax Subsidy in Question


Foxconn Shenzhen factory

Last month, Foxconn announced that it is opening a display factory in the United States that will be making large screen panels used in televisions and other similar devices. The factory was initially believed by many to produce iPhone components but that did not turn out to be true. Now though, a new report details that Foxconn will be using its Wisconsin factory to produce LCD panels for the iPhone as well.

The report does not cite any sources so the authenticity of this information cannot be verified for now. This is important since it was previously believed by many that Foxconn’s US factory would end up producing LCD panels for the iPhone which did not turn out to be true.

The report also questions the $3 billion subsidy that the Wisconsin state has promised to Foxconn. Many analysts believe that this incentive package will prove costly to the state, with the investment not being recouped until 2042-2043.

Wisconsin State Governor Scott Walker has been defending the incentive package by hailing it as “transformational.” He said that the deal will help make Wisconsin a technology hub for jobs and capital investment.

“We believe this is transformational,” Mr. Walker said Wednesday in an interview with The Wall Street Journal. “We think in terms of attracting talent across the country and around the world.

Mr. Walker said the benefits of the deal went beyond the number of jobs that would be created from the facility itself. Instead, he said, the deal should be viewed as a way to make Wisconsin a hub for technology jobs and venture capital investment. He said as a “cutting-edge technology” firm, Foxconn would help the state attract young talent and retain its college graduates. He also thinks its most crucial benefit would be changing the popular image of Wisconsin and the benefits of living there.

Due to the concerns surrounding the subsidy, it is possible that the $3 billion subsidy to Foxconn will not be approved by the state legislature. If that happens, Foxconn will likely end up reconsidering its investment plans in its US factory.

[Via NY Times]

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