The US State of Wisconsin reports that: Foxconn’s LCD factory under construction does not match the actual name
According to foreign media The Verge, a report issued by the Wisconsin State Executive Budget and Finance Department shows that Foxconn’s LCD factory project in Wisconsin is far from complete.
The report confirmed that Foxconn has not yet built the 10.5 generation liquid crystal display (LCD) plant specified in the contract. The report also pointed out that the factory claimed by Foxconn is a smaller 6th-generation LCD factory. There is no indication that this factory can be used to manufacture LCDs, and 'may be more suitable for demonstration purposes.'
According to Wisconsin Industry consultants said that Foxconn has not yet ordered the equipment needed to manufacture LCD. If this factory is used as an LCD manufacturing plant, it will be the smallest 6th generation LCD factory in the world. 'In the long run, it looks more like A display project, not a viable business.'
The analysis also said that if LCD-related work is to be produced in this factory, it may only be imported into Wisconsin after being produced elsewhere. The factory performs the final assembly. Such a project will have little impact on the local supply chain and will not hire the 13,000 workers expected in Foxconn’s contract with the state.
In an interview with The Verge, Wisconsin State Administration Secretary Joel Brennan said: “Obviously, the 6th generation LCD built in Mount Pleasant, USA The factory is different from other 6-generation LCD factories in the world.'
This report also explains why the state has refused to pay Foxconn subsidies so far. Last week, the Wisconsin State Economic Development Corporation (WEDC), which is responsible for the transaction, rejected Foxconn’s first refundable tax credit of nearly $3 billion on the grounds that Foxconn did not build the LCD factory specified in the contract.
In addition, Foxconn did not employ the number of workers expected in the contract signed with Wisconsin in the project. As of the end of last year, Foxconn had only hired 281 qualified personnel who met the terms of the contract, instead of the previously expected 2,080, or even the 520 required for tax subsidies. By the end of 2022, Foxconn should have hired 13,000 workers under the contract. At present, it is very likely that this number of hired workers will not be reached by then.
The Verge's investigation of Foxconn found that Foxconn recruited a large number of local college students and foreign graduates through visas at the end of 2019 in an attempt to reach the employment threshold required to obtain subsidies, but once the visa expires When it expires, a large number of employees need to be laid off.
The state report also pointed out that Foxconn’s employment has declined this year, which failed to fulfill Foxconn’s contractual obligations, that is, to maintain employment levels for several years.