Foxconn Builds $10 B Factory in US
According to the WSJ Chinese manufacturing company Foxconn is planning to build a $10 B factory in Wisconsin, potentially employing up to 13,000 factory workers directly and 22,000 indirect jobs and further 10,000 construction jobs. The yearly wage for the factory workers will be $53,000 + benefits, whereas in China Foxconn employs them for around $5,000 a year.
The plan, announced Wednesday at a White House ceremony, marks the first major U.S. investment for Foxconn ... The state is providing Foxconn with a $3 billion, 15-year incentive package of tax credits, Mr. Walker said.- WSJA senior White House official said Foxconn’s decision reflects the benefits of President Donald Trump’s policies, including “buy America principles” and a “commitment to pass major tax reform and infrastructure spending.”
Is this a good move for Foxconn? Is Trump to thank for all this? Does this really indicate the Trump administration can get things done, or will scandal, healthcare reform etc. keep stopping congress from moving on with tax cuts and deregulation?
Bad move for Foxconn. Good for American workers. Trump bullies companies to come back to the U.S. for the benefit of the workers. Nothing wrong with wanting American workers to have more jobs available, but Foxconn is going to have to raise prices for the iPhone and other products.
I'm not a fan of the government, GOP or Democrat trying to meddle in bringing or saving jobs. Moves like giving out massive tax breaks or what Obama did for the automakers is not the free-market solution I strive for.
Nonetheless this could be a good move for Foxconn has it allows them to be closer to their primary customer base and end users. Shrinking their supply chains should help Apple avoid shipping delays on iPhones and other products. In addition it can give Foxconn leverage with local, state, and even federal government that it probably doesn't have in the Far East (Taiwan, China I assume?).
As for the US perhaps it will lead to increase purchasing with local American vendors for services and raw materials. Would be interesting to see the impact of this on the local economy.
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