Taiwanese electronics manufacturer Foxconn is pledging to build a new facility in Wisconsin. Governor Scott Walker joined FOX Business to discuss why the new plant is so important for the state’s economy.
“These LCD displays will be made in America for the very first time right here in the state of Wisconsin and we think it’s transformational, which is why we are calling this region ‘Wiscon Valley,’ because we think it will not only help Foxconn but all the other businesses related to it. It will help put Wisconsin on the map all around the world,” he said.
However, taxpayers may not see the benefits until 2043, according to a new analysis by the Legislative Fiscal Bureau.
“In Wisconsin years ago we eliminated all but a fraction of the state tax on manufacturing as well as on agriculture, our two biggest industries. So if you’re a business thinking about moving to Wisconsin right now you should know whether it’s 13, 130, 1,300 or 13,000 jobs, you’re one of the best places in the world to be at in Wisconsin because we value manufacturing. That’s why it takes a little longer than a typical job out there or a typical project out there,” he said.
The deal would provide Foxconn with $3 billion in incentives towards a $10 billion plant. In addition to the 13,000 jobs being created at the new plant, the deal would generate an additional 22,000 indirect and induced jobs in Wisconsin, he said.
“All the other entities, all the other suppliers, the supply chain issues – We’ve already seen Corning Glass say that they are going to come because to build these LCD displays they’ve got to be close to where these facilities are at,” said Walker.
He also expects the deal to attract people from other states and countries.
“You are seeing other entities, other businesses – we think it will help us attract talent across the country and around the world and keep more of our college and high school graduates here in the state of Wisconsin,” he said.
This isn’t the first time Foxconn planned to build a plant in the U.S. In 2013, FoxConn said it would build a 500-worker plant in Pennsylvania. Even though it never materialized, Walker said Wisconsin has claw-back provisions in place as protection.
“We have what you call ‘pay as you grow.’ So they don’t get a penny if the jobs don’t materialize and they don’t make the capital investment,” he said, and added that Foxconn backed out of the Pennsylvania deal due to a governor change.