Jun 20, 201711:00 AMInside Wisconsin
with Tom Still
Here are reasons why a company such as Foxconn might consider Wisconsin
(page 1 of 2)
The speculation began within minutes of when President Trump, speaking in Waukesha and alluding to negotiations with an unspecified company, told Gov. Scott Walker he might get “a very happy surprise very soon.”
That surprise may well be Foxconn, a Taiwanese giant that assembles Apple’s iPhones and other electronics. No one will say for sure, but the Associated Press reported Thursday it had off-the-record confirmation that Foxconn is talking with Wisconsin.
The Wisconsin Economic Development Corp. never comments on pending or potential opportunities — which is appropriate given how fragile and competitive such talks can be — so the potential “surprise” is still tightly wrapped inside a box awaiting a party that may never come.
This much is known, however. Foxconn is best known as one of Apple’s iPhone and iPad manufacturing partners. The company is likely to build a plant in the United States that would be used to build displays for everything from internet of things products to Apple devices.
As DigiTimes reported earlier this year, Foxconn would use a U.S. facility to manufacture “small to medium displays for IoT applications, including automotive, medical care, and mobile terminal displays.” It could also be used to develop new screens for existing Apple products and televisions.
Foxconn CEO and Chairman Terry Gou said in January the company was planning to invest $7 billion in a U.S. facility, and a company executive visited the White House a month or so ago.
Why would a company so large that entire cities have sprung up around its global factories have an interest in the United States and Wisconsin?
For starters, building a huge screen plant in the United States would fit well with Trump’s push to create more domestic jobs. Trump has criticized foreign and domestic companies alike for not creating or keeping American manufacturing jobs, and he has threatened to increase tariffs on imports from countries that don’t take heed.
The interest goes beyond politics, however. Foxconn would like to secure a larger share of American markets, particularly for products such as Sharp, a recently acquired subsidiary. Localizing screen production could help the company save on transport costs. The resulting publicity could also help sell more high-end Sharp-branded sets in the United States, the world’s second-biggest television market.