Tax Concession Rumored to be Reduced for Foxconn in Wisconsin; Mark Liu: Adjustments Made According to the Industrial Arrangement

published: 2021-05-13 9:30 | editor: | category: News

As reported by foreign media, Wisconsin has come to an agreement with Foxconn regarding the latter reducing the scale of plants in the southeastern part of the state, and the tax concession previously received will also be diminished to a little more than US$100 million. Foxconn’s Chairman Mark Liu has pointed out on April 21 that the tax concession is not being reduced, but rather adjusted according to the actual demand and the industrial arrangement.  

The Associated Press reports that the contract signed between Foxconn and the Government of Wisconsin in 2017 consists of an establishment of a 10.5-inch panel plant on an investment scale of US$10 billion that will employ 13K local employees as the primary condition, with a maximum subsidization of several billions of US dollars.

Liu has explained accordingly that the investment in Wisconsin will be an on-going process, and the company will be seeking for the adequate industry in accordance with the local demand, as well as adhering to the 3+3 development strategy as foundation without emphasizing on the ICT products from the past. As for the negotiation with the Government of Wisconsin, it is implemented to revise on the agreement since the previous condition concession was based on the panel industry, yet the new agreement will be adequately adjusted according to the industrial arrangement, and the new industrial scale may be even larger than what was promised before. Hence, the new contract will come with new subsidization solutions following the changes in industrial items, and subsidization will be adjusted based on the needs of the industry.

Liu disclosed that the establishment of production lines for electric vehicles in either Wisconsin or Mexico will be confirmed imminently, but the possibility of simultaneous production in the two regions is also possible, with Mexico already starting the production of relevant components and parts for automobiles.

Liu also explained that Foxconn now has more than 300 patents in electric vehicles, and will continue to research and develop lithium iron phosphate and solid state batteries, with related samples expected to debut at the HHTD 2021.

 (Cover photo source: Foxconn)

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