What's Next For Foxconn? LCD Manufacturing Reportedly Out

MOUNT PLEASANT, WI -- A top Foxconn executive told reporters Wednesday that the Taiwanese electronics manufacturer may not end up making LCD screens in Mount Pleasant, throwing into question the $10 billion factory's future.

Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, told Reuters that Foxconn is evaluating options for Wisconsin, but added that making advanced TV screens in the U.S. comes at a high cost to the company.

“In terms of TV, we have no place in the U.S.,” he said in an interview with Reuters. “We can’t compete. In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment,” Woo said in the interview.

In the report, Woo told Reuters that the company's latest plan is to create a campus of research facilities along with packaging and assembly operations.

Racine County officials responded to the report later Wednesday, saying they've received reassurances from the company that Foxconn's commitment to generating 13,000 jobs is still on track.

Village of Mount Pleasant President David DeGroot, Racine County Executive Jonathan Delagrave and Jenny Trick, Executive Director of the Racine County Economic Development Corporation issued the following statement, which says in part:

Contrary to what was reported by Reuters, Foxconn reiterated to us, today, its commitment to building an advanced manufacturing operation in Wisconsin, in addition to its commitment to create 13,000 jobs and invest $10 billion in Racine County. As Foxconn has previously shared, they are evaluating exactly which type of TFT technology will be manufactured in Wisconsin but are proceeding with construction on related manufacturing, assembly and research facilities on the site in 2019.

We understand that Foxconn must be nimble in responding to market changes to ensure the long-term success of their Wisconsin operations. We fully expect that Foxconn will meet its obligations to the State, County and Village.

Officials stated that both the local and state development agreements are legally binding, and include strong protections for taxpayers. The state agreement, they said Wednesday, was largely based on job creation, and ensures that Foxconn only receives state tax credits if it meets or exceeds its targeted hiring amounts in any given year.

The local development agreement stipulates that, if, for any reason, Foxconn’s investment on the campus falls short, the company remains obligated to support a minimum valuation for the project of $1.4 billion, which will more than pay for all public improvements and development costs for the project.

Republicans Blame Democrats

Wednesday morning, Wisconsin legislative Republicans made short work to blame incoming Democratic Gov. Tony Evers for the latest iteration of Foxconn's plans in Wisconsin.

Assembly Speaker Robin Vos (R-Rochester) and Senate Majority Leader Scott Fitzgerald (R-Juneau) released the following statement on the Foxconn commitment to Wisconsin.

“We don’t blame Foxconn for altering plans in an ever-changing technology business. It’s also not surprising Foxconn would rethink building a manufacturing plant in Wisconsin under the Evers Administration. The company is reacting to the wave of economic uncertainty that the new governor has brought with his administration. Governor Evers has an anti-jobs agenda and pledged to do away with a successful business incentive for manufacturing and agriculture.

State Sen. Lena Taylor (D-Milwaukee) wasn't buying Vos' explanation for matters surrounding Foxconn's latest news: "To imply that a change in the Governor’s office is justification for Foxconn’s outright lies to the residents of this state, is ridiculous. It also doesn’t fly, since again, Foxconn started reneging on aspects of the deal while Walker was still in office," she said in a statement Wednesday.

"Almost has soon as the ink dried on the Wisconsin deal, Foxconn started walking back their promises. Immediate reductions in screen sizes, hires, Chinese workers instead of Americans, plant operations, assembly workers, and on and on. The only thing that hasn’t changed is that this has been a bad deal for Wisconsin since the start. At some point, Republican leadership needs to admit, plain and simple, they got played," Taylor added.

Patch File Photo by Scott Anderson