Foxconn's promise to invest $10 billion in Wisconsin is now a distant memory

[freshshine1]

Foxconn's promise to invest $10 billion in Wisconsin is now a distant memory​

It's now selling two mostly empty buildings in the state.​

ASSOCIATED PRESS

When Foxconn announced its plans to open facilities in Wisconsin back in 2017, it promised to invest $10 billion into bringing production to the US that was expected to lead to as many as 13,000 jobs. Now, the Taiwanese supplier to tech giants like Apple is selling two properties in Eau Claire and Green Bay, purchased for almost $12 million in 2018. The property listings were first reported by Wisconsin Public Radio (via Gizmodo and The Verge), which revealed that only three floors of the Green Bay building's six floors are in use. Meanwhile, the portion Foxconn owns in a mixed-use property in Eau Claire has reportedly remained empty for years.

Foxconn originally said that it was going to build "innovation centers" in Wisconsin, including one that will serve as an LCD factory. The project was supposed to be massive enough to strike a $2.85 billion tax credit deal with the local government. At the time the project was announced, then President Donald Trump said that if he didn't get elected, Foxconn "wouldn't be spending $10 billion" on manufacturing in the US. The former president was also there when the project broke ground, equipped with a golden shovel.

In 2021, however, Foxconn massively altered the scale of the project and told the local government that it would be investing $672 million instead of $10 billion like it intended. It also reduced the number of potential jobs produced to 1,454 from 13,000 positions. The company said back then that its original projections "changed due to unanticipated market fluctuations" and that reducing the scale of its project in the US gives it the "flexibility to pursue business opportunities in response to changing global market conditions."

Foxconn didn't comment on its Eau Claire property, but it told WPR that it "will add to the vibrancy of the city's downtown." Green Bay Mayor Eric Genrich posted on X that he hopes a sale "will lead to better utilization of a fantastic waterfront building."

 

[MKWVentures]

Big announcements to get support from local government and press coverage. Then delays and slow "redesign of plan" . This happened in the past and it will happen in the future. I recommend not counting wafers out the door until equipment is installed. Obviously all of the announced fabs are not going to happen.... which ones will be "Foxconn'd" ? there are some likely candidates

 

[blueone]

I always figured this facility was directly related to Apple's on-again - off-again car project. Foxconn has wanted to be a player in electric car manufacturing for years, and they're currently partnering with Fisker and Endurance; not exactly large-volume plays. Everyone wants to be Tesla, but only BYD comes close.

 

[Daniel Nenni]

So many press releases were published during the pandemic semiconductor shortage narrative. Only a fraction of the monies mentioned will actually be spent in my opinion. 2023 is a very uncertain year, definitely a correction year. The question is are we over correcting or under correcting?

I am still of the opinion that, on our current course, we will see oversupply in 3-5 years.

I was at the GF foundry event yesterday and will share my thoughts later but it was a much smaller event than I expected. The vendors/analysts out numbered the customers from my observation.

 

[MKWVentures]

So many press releases were published during the pandemic semiconductor shortage narrative. Only a fraction of the monies mentioned will actually be spent in my opinion. 2023 is a very uncertain year, definitely a correction year. The question is are we over correcting or under correcting?

I am still of the opinion that, on our current course, we will see oversupply in 3-5 years.

I was at the GF foundry event yesterday and will share my thoughts later but it was a much smaller event than I expected. The vendors/analysts out numbered the customers from my observation.

there is no shortage of memory and there is no shortage of CPU advanced logic fab capacity. CoWoS will have issues for a while but that is used on less than 10% of fab output.

 

[Daniel Nenni]

there is no shortage of memory and there is no shortage of CPU advanced logic fab capacity. CoWoS will have issues for a while but that is used on less than 10% of fab output.

Agreed. Packaging is much easier to scale up so no worries there. The TSMC OIP is on 9/27 so we will know more then.

 

[KevinK]

Foxconn's promise to invest $10 billion in Wisconsin is now a distant memory
It's now selling two mostly empty buildings in the state.​

ASSOCIATED PRESS

When Foxconn announced its plans to open facilities in Wisconsin back in 2017, it promised to invest $10 billion into bringing production to the US that was expected to lead to as many as 13,000 jobs. Now, the Taiwanese supplier to tech giants like Apple is selling two properties in Eau Claire and Green Bay, purchased for almost $12 million in 2018. The property listings were first reported by Wisconsin Public Radio (via Gizmodo and The Verge), which revealed that only three floors of the Green Bay building's six floors are in use. Meanwhile, the portion Foxconn owns in a mixed-use property in Eau Claire has reportedly remained empty for years.

I lived and went to high school near Mt. Pleasant, Wisconsin. Pretty much all the residents, except the most crazed Trump supporters, have now recognized the 2017 Terry Gou/Trump/Paul Ryan/Scott Walker "deal" (yes, the 4 guys in the hyped-up photo) as the huge photo-op and political scam it was. Foxconn was jockeying for protection against tariffs, Trump, Ryan and Walker were seeking an easy an quick manufacturing win. Unfortunately the state and the village built a half billion dollars in infrastructure for the tremendously downsized and repurposed version Foxconn eventually built (or didn't in. the case of the properties mentioned). I'm betting that the Intel / OH and TSMC / AZ fabs get built and put into production, just like the GF fab in Malta, NY. But Foxconn has a history of Foxconning different locales.

 

[freshshine1]

I lived and went to high school near Mt. Pleasant, Wisconsin. Pretty much all the residents, except the most crazed Trump supporters, have now recognized the 2017 Terry Gou/Trump/Paul Ryan/Scott Walker "deal" (yes, the 4 guys in the hyped-up photo) as the huge photo-op and political scam it was. Foxconn was jockeying for protection against tariffs, Trump, Ryan and Walker were seeking an easy an quick manufacturing win. Unfortunately the state and the village built a half billion dollars in infrastructure for the tremendously downsized and repurposed version Foxconn eventually built (or didn't in. the case of the properties mentioned). I'm betting that the Intel / OH and TSMC / AZ fabs get built and put into production, just like the GF fab in Malta, NY. But Foxconn has a history of Foxconning different locales.

Yea the Foxconn fab was dubbed the "8th wonder of the world" and was promising 13,000 jobs.. I'm sure a lot of people saw it coming miles away as the political scam it is

Now that Terry Gou is running for Taiwanese president in 2024, it really does bring some thought how much of his campaign will be another empty promise in 3-4 years time if he does get elected.