Billionaire Terry Gou, chairman of Foxconn Technology Group, right, listens as Scott Walker, governor of Wisconsin, speaks during an event in the East Room of the White House in Washington, D.C., U.S., on Wednesday, July 26, 2017.
The state would be paying for 30% of Foxconn's total investment in the plant, and this wouldn't be the end of it. Trump's plans for health care and tax cuts face a murky future in Congress, while his administration is bogged down by an investigation into Russia's possible ties with his presidential campaign. The governor said he would like to see some changes made to the UW system to reflect the upcoming workforce, and also mentioned an increase in enrollment for technical schools.
It is unclear if Foxconn is still shopping that smaller project even as it awarded the larger facility to Wisconsin, which has promised $3 billion in government incentives. Plus, around 22,000 indirect and induced jobs will be created because of Foxconn's economic impact.
While a site has not yet been selected, Walker said ground on the new Foxconn campus in southeastern Wisconsin would be broken sometime next year, with operations set to start in 2020.
The firm will invest $10 billion in Wisconsin to build a new manufacturing plant that produces LCD panels. It's being built in House Speaker Paul Ryan's home electoral district. If both sides deliver on their promises, it could cost Wisconsin up to $1m per job, according to calculations by Bloomberg BusinessWeek writer Tim Culpan.
Foxconn, a major supplier to Apple for its iPhones, said last month it plans to invest more than $10 billion in a display-making factory in the United States. The company noted in a statement that having the Wisconsin factory would help it better serve the major USA technology companies that are its clients.
The two companies will also focus on workforce development and training for IIoT solutions as Foxconn (hopefully) increases its US presence.
Governor Walker's executive order requires the Legislature to commence the Wisconn Valley Special Session at 11:00 a.m. on Tuesday, August 1st, exclusively to consider and act upon the legislation.
It would include up to $1.5 billion in state income tax credits for jobs created, up to $1.35 billion in credits for capital investment and up to $150 million in sales tax exemptions on construction materials.
The choice to build in Wisconsin seems to be motivated primarily by the incentives package, but Bloomberg notes that the state's unemployment rate is the lowest since 1999, and that skilled labor in the numbers Foxconn is looking for may be hard to find there.
Republican leaders in the Wisconsin Senate have said Walker had been negotiating a memorandum of understanding with Foxconn to build such a factory in southeast Wisconsin.
The president had met personally with Gou, who on Wednesday complimented Trump's leadership at the event by saying, "Mr. President, the eagle flies".