I want to you take a deep breath in through your
Or maybe you imagine a migrant family, traveling thousands of miles through dangerous terrain just to find a better life for their children.
Keep breathing…
Either depiction is welcomed and acceptable, and every person’s idea of the American dream is unique. For the Taiwanese electronics manufacturer Foxconn (HNAF), the American dream meant to construct a new facility in Mount Pleasant, Wisconsin.
Foxconn (HNAF) hasn’t had the most success, in terms of public image, over the years. Back in 2010, the Company’s corporate structure, specifically its working conditions, came into question when news got out that there were eighteen separate suicides by Foxconn employees resulting in fourteen deaths that year.
As one of the world’s largest contract electronics manufacturers, Foxconn’s (HNAF)business practices were brought into question by many of its partners, most notably Apple (AAPL). Unsurprisingly enough, Foxconn’s Longhua plant, where most Apple (AAPL) products are made to this day, was the location of suicide attempts.
In an attempt to rebrand the company, Foxconn (HNAF) announced in 2017 plans to build a $10 billion LCD display panel screen plant in Wisconsin. At the time of the announcement, President Donald Trump couldn’t help but chime in on the deal, and publicly cried out in support of Foxconn’s mid-west expansion plan. Trump, at the time, said that the:
“…plant will manufacture state-of-the-art LCDs, adding an average of $3.4 billion to the state’s economy every single year. And, by the way, I don’t know this, but I understand life and I understand politics, I guess — or I wouldn’t be here, in a short period of time. I must have potential, right? Because here we are, all together…”
–President Donald Trump
The plan for Foxconn (HNAF) to began manufacturing LCD screens and foam cheese-heads was conceptualized by Foxconn (HNAF) CEO Terry Gou, and was reported to created over 13,000 jobs and $10 billion worth of capital investments for the State of Wisconsin, ultimately adding $51 billion to Wisconsin’s gross domestic product over fifteen years, according to reports.
However, I am tasked with informing you that Foxconn’s (HNAF) perception of the American dream has recently been cut all too soon.
According to an interview with Reuters, Louis Woo, a special assistant to Terry Gou, informed the media outlet that Foxconn (HNAF) is now reconsidering its original plans to build a Wisconsin-based LCD screen facility, and continued to explain that the Company will hire “mostly engineers and researchers rather than the manufacturing workforce” originally brought up by Gou.
Now, to be clear, the Company isn’t scrapping the Wisconsin project. Woo told Reuters that Foxconn (HNAF) determined a US plant will never be able to compete with lower-cost flat panel plants made more cheaply in other countries, but Foxconn wishes to create a “technology hub” in Wisconsin.
“We remain committed to the Wisconsin Valley Science and Technology Park project, the creation of 13,000 jobs, and to our long-term investment in Wisconsin. The global market environment that existed when the project was first announced has changed. As our plans are driven by those of our customers, this has necessitated the adjustment of plans for all projects, including Wisconsin. While the project’s focus will be adjusted to meet these new realities, the Wisconsin project remains a priority for our company.”
–official statement from Foxconn
