Foxconn, the Taiwan-based contract manufacturer, was to build a $10 billion worth facility for manufacturing LCD panels
Foxconn, as per a report in The Verge, hired employees in USA to qualify for payments from the state. The state of Wisconsin had promised billions in subsidies to a global electronics giant. These subsidies were part of building a game changing tech campus.
However, the employees hired so far, have had nothing to do. The report states that Foxconn was to build a facility worth $10 billion for producing LCD panels. Tll date, very little construction has taken place at the site. The Verge also reported that the facility has been used to export ice cream, and for storing snow mobiles and boats.
The factory was supposed to be built somewhere between Milwaukee and Chicago. A lot of the employees who were hired initially have been let go. The state has also denied the subsidy payments. It has also asked for a renegotiated contract.
Approved for PLI in India
Foxconn, in India, have been approved to be a part of the PLI scheme. The scheme, introduced by the government of India to promote domestic manufacturing of electronics, promises incentives worth Rs 50,000 crore to participants. A total of 16 companies have been approved under the scheme.
As a matter of fact, Josh Foulger, country head and Managing Director, Foxconn India, has been appointed the chairman of Capital Goods Committee to address technology gaps in the vertical of smartphones and electronics manufacturing in India. This commitee was formed by ICEA.
Young-way Liu, Chairman, Foxconn, recently said, ““No matter if it’s India, Southeast Asia or the Americas, there will be a manufacturing ecosystem in each,”.
Liu also added that China will still remain a key part of its production, but the country’s days as the world’s factory are done. It has also been reported that the current proportion of Foxconn manufacturing made outside China is now 30 per cent. It was 25 per cent in June 2019.
