Foxconn to open $10 billion factory in Wisconsin!

Foxconn isn’t a household name even though it is the producer of most of Apple’s electronic products. The company is very well known in the electronics manufacturing circles for being a quality manufacturer. Foxconn basically helped China to become the center of electronics manufacturing with popular products including Foxconn connectors and the Foxconn g31mx. Now, Foxconn is looking to open a brand new factory in the US at Wisconsin. The factory will be huge and in line with President Trump’s campaign promises. At the same time, Trump also revealed that Apple had pledged to open three factories in the US to ensure jobs for United States’ citizens.  Apple has declined to comment on the announcement while White House officials confirmed that the Foxconn factory would not be considered as an Apple plant.

Foxconn
Wisconsin Gov. Scott Walker and Terry Gou

Foxconn factory capacity

The factory which will soon begin construction under Mr. Terry Gou will be huge in size and greatly improve the economy of the neighboring states. With this factory, Mr. Gou is looking to shift the electronics manufacturing supply chain that has shifted to many Asian countries in recent years. Mr. Gou feels that opening this factory will greatly reduce the transport costs involved in shipping electronics from other countries into the US. The factory is expected to employ 3,000 people initially. However, this number is expected to grow up to 13,000 people in the long run. The factory will also create close to 22,000 indirect jobs while creating a total of 10,000 construction jobs. With such high stakes running on this plant, the White House doesn’t want to let this opportunity go.

The plans for the factory were introduced in a White House ceremony with this being the first investment Foxconn has made in the country. The State will also be providing Foxconn with $3billion worth of tax credits over the period of 15 years. Wisconsin Governor Scott Walker confirmed this. The announcement confirms plans reported Monday by The Wall Street Journal. Foxconn was exploring investments in seven states including Illinois, Indiana, Michigan, Ohio, Pennsylvania and Texas.

Foxconn to open $10 billion factory in Wisconsin!

Foxconn Factory Specifications

Governor Scott Walker also stated that this factory could even bring up to a hundred and fifty suppliers to Southeastern Wisconsin and nearby states. The exact location of the factory is not yet clear but it will be in Speaker Paul Ryan’s district.  The average salary at the factory for the 13,000 proposed jobs will be $53,000 annually not including benefits. The 20-million-square-foot campus will primarily produce high-resolution liquid-crystal displays, known as 8K resolution LCD, used in smartphones and car dashboards in addition to TVs.

One major thing everyone seems to have forgotten about is the assembly plants. This factory will only be producing the screens. A strong supply chain in the Asian countries will be producing the other components. This will be a major challenge. They will rebuild supplier factories near this new factory as Wisconsin is pretty far from the Mexican border making it expensive to import supplied from Mexico.

Foxconn to open $10 billion factory in Wisconsin!
Terry Gou, chairman of Foxconn Technology Group

Even with all these problems being highlighted, this might be the best option in the long run especially with rising problems in the Asian supply chains. David Sullivan, a partner with Alliance Development Group is an advisor to technology firms. He feels that with rising cost of resources in China, mounting labor shortages and increasing automation in the industry, this bold move could very well pay off in the long run.

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