States vie for Foxconn display panel factory
LANSING, Mich. — Taiwanese electronics maker Foxconn’s plan to build a display panel factory in the U.S. has sparked a flurry of lobbying by states vying to land what some economic development officials say is a once-in-a-generation prize.
It’s not just jobs that are up for grabs — possibly 5,000 alone at the plant and potentially thousands more at other unspecified U.S. operations the company intends to launch. Luring Foxconn to build the country’s first liquid-crystal display factory would signal the Midwest, which has hemorrhaged manufacturing jobs in recent decades, can diversify into again producing high-tech consumer gadgets often assembled in Asia.
The hunt for Foxconn is fluid and largely secretive, with Rust Belt governors and state officials declining to even confirm their interest due to nondisclosure agreements and Foxconn not elaborating much on why it will expand its U.S. footprint. But Foxconn, the biggest contract assembler of smartphones and other devices for Apple and other brands, has listed seven states with which it hopes to work. It’s expected to announce plans to develop operations in at least three states by early August.
In two, the wooing of Foxconn has spilled into public view. Michigan lawmakers this month passed job-creation tax incentives, including one for companies that add at least 3,000 jobs that pay the average regional wage. Wisconsin legislators are considering new incentives, too.
Ohio, Pennsylvania, Illinois, Indiana and Texas also appear to be in the mix for some sort of investment from Foxconn, which bought Japanese electronics brand Sharp last year. An examination shows positives and negatives for Wisconsin and Michigan:
WISCONSIN: Republican Gov. Scott Walker has close ties to the White House, and President Donald Trump said during a visit to Wisconsin that “we were negotiating with a major, major incredible manufacturer of phones and computers and televisions and I think they’re going to give the governor a very happy surprise very soon.” House Speaker Paul Ryan met with Foxconn officials and hopes the company will build its big plant in his southeastern Wisconsin district, which isn’t far from Chicago. Right-towork Wisconsin has a manufacturing incentive that provides a dollar-for-dollar tax credit equal to 7.5 percent of reported income, nearly eliminating all corporate tax liability. Like some other states, it struggles to provide enough trained workers for available jobs.
MICHIGAN: Republican Gov. Rick Snyder has made Michigan more business-friendly by slashing business taxes, eliminating a machinery tax and boosting trades training. The auto state boasts the most engineers, per capita, and tax changes and loosened union requirements help it compete. But a decision to reduce tax incentives has kept it out of the mix for large-scale business expansions, say economic developers. The new “Good Jobs” incentives worth $200 million annually will let qualified companies keep employees’ state income tax withholding for 10 years. High electricity rates may be a detriment, and some lawmakers have criticized the working conditions at Foxconn’s factories in China.