Watch LIVE

After talk with Trump, Foxconn changes tune, says it will proceed with Wisconsin factory


The company had previously said that the factory would be too expensive to build

Andy Manis/Getty Images

After initially saying that doing so would be too expensive, Foxconn has backtracked and said that it will open a promised factory in Wisconsin. The change came reportedly came after a call from President Donald Trump.

Here's what we know

In 2017, Taiwanese electronics giant Foxconn promised to build a $10 billion factory in Wisconsin. This factory would have reportedly created 13,000 jobs, and it was praised by Trump as the "eighth wonder of the world." In return for building the factory, Foxconn would get tax breaks and incentives from the government.

In June, Trump ceremonially broke ground on the site of the future factory, along with former Wisconsin Gov. Scott Walker (R), former House Speaker Paul Ryan (R-Wis.), and Foxconn CEO Terry Gou.

On Wednesday, however, Foxconn said that it would no longer be building that factory after all.

"As we have previously noted, the global market environment that existed when the project was first announced has changed," the company said in a statement. "As our plans are driven by those of our customers, this has necessitated the adjustment of plans for all projects, including Wisconsin."

Instead of hiring factory workers, Foxconn said that it hoped to hire engineers and researchers.

Louis Woo, the special assistant to Gou, told Reuters on Wednesday, "[i]n Wisconsin we're not building a factory. You can't use a factory to view our Wisconsin investment." Woo explained that Foxconn had "no place in the U.S." because "[w]e can't compete."

But after a conversation with Trump, Foxconn appears to have agreed to reconsider.

In a statement on Friday, the company said:

After productive discussions between the White House and the company, and after a personal conversation between President Donald J. Trump and Chairman Terry Gou, Foxconn is moving forward with our planned construction of a Gen 6 fab facility, which will be at the heart of the Wisconn Valley Science and Technology Park.

What did Trump say?

Trump tweeted about how his conversation had changed Foxconn's decision.

Most recent
All Articles