29 July 2021
Stepping back from Apple's supplier Foxconn

Stepping back from Apple’s supplier Foxconn

Apple’s Taiwanese supplier Foxconn is drastically pulling back on its plans for the $ 10 billion Wisconsin factory. Foxconn, initially 10 billion dollars He goes to drastically downsize his controversial factory in Wisconsin after he pledges to invest.

The company is under the new agreement with the state instead of the million dollar investment. 672 million will put dollars. Foxconn was initially 13.000 stated that it will provide new job opportunities. However, according to the new investment decision and Reuters reports, the company was only 1.454 people will provide employment.

Foxconn couldn’t keep his promise

According to Foxconn, the reduced scale of the project gives the company “flexibility to pursue business opportunities in response to changing global market conditions.” The supplier also claims that “the original estimates used during the negotiations in 2017 are currently changing due to unexpected market fluctuations”.

When the company and state officials announced the project, Foxconn on campus 20 million pledged to build a production facility of square feet. With this facility, the manufacturer stated that it will make advanced flat panel displays.

However, Foxconn’s goals for the campus have been changing for a long time. So much so that the company initially abandoned plans to build state-of-the-art displays in favor of smaller, less advanced ones. However, this did not happen either. Foxconn considered shifting the focus from production to research and development early in 2019.

After critics attacked the proposal, the company assured that it would have a research center as well as production facilities on campus.

Foxconn president Liu Young-waysaid the company manufactures medical devices, servers, and communications equipment in Wisconsin. He proposed building electric vehicles there as well.

The latest agreement between Foxconn and Wisconsin reduces planned subsidies for the project, which could ultimately cost taxpayers over $ 4 billion.

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