Taiwanese contract manufacturing giant Foxconn may kill its highly-publicized plans to build flat screen TVs at a plant in Wisconsin.
The 2017 announcement to open the plant by Foxconn, one of (AAPL) - Get Report Apple's largest manufacturers with plants throughout China, was touted by President Trump as a big win for U.S. manufacturing. It was also controversial for the promise of $4 billion in state and local tax incentives.
Rather than a factory, the company is now planning to create a "technology hub" for research, as well as some packaging and assembly operations, Louis Woo, special assistant to Foxconn CEO Terry Gou told Reuters. Woo said that "in terms of TV, we have no place in the U.S. We can't compete." Foxconn said it still expects to hire up to 13,000 workers for the operations in Wisconsin.
"We remain committed to the Wisconsin Valley Science and Technology Park project, the creation of 13,000 jobs, and to our long-term investment in Wisconsin," the company in a statement to various media outlets. "The global market environment that existed when the project was first announced has changed. As our plans are driven by those of our customers, this has necessitated the adjustment of plans for all projects, including Wisconsin. While the project's focus will be adjusted to meet these new realities, the Wisconsin project remains a priority for our company."
Score a Touchdown with Jim Cramer's Big Game Special
Get access to the best stock picks in Jim Cramer's investment portfolio by executing a two-minute drill on our Big Game Special on Action Alerts PLUS, Jim's VIP club for investors. Sign up now through Feb. 4 and receive 58% off of the normal subscription price. Now that's a real touchdown!