Exclusive: Foxconn Chairman Terry Gou explains company's $10 billion plan for Wisconsin
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July 28--Prepare to be transformed.
In a world where technology keeps getting sharper, faster and more entrenched in all facets of life, some of the sharpest, fastest technology is going to be made at a $10 billion LCD-screen plant to be built in southeast Wisconsin, Foxconn Technology Group Chairman Terry Gou said Thursday in an exclusive interview with the Journal Sentinel.
Gou visited the city to sign a memorandum of understanding with the state and commit his Taiwan-based electronics manufacturing company to investing billions of dollars and hiring up to 13,000 people in the new facility at "living wage" jobs.
The commitment may even include a naming rights deal for all or part of the Milwaukee Bucks' new arena, Gou said. "I would say this: We (are) working with them, but it's not final yet," Gou said. "Do we want the whole building or just one section? I don't know."
Gou confirmed that Foxconn(FXCOF) plans to invest $10 billion in Wisconsin by 2020, constructing a campus of multiple buildings totaling 20 million square feet to produce super-high-definition liquid crystal display panels to be used in a variety of industries.
The company, perhaps best known as the producer of Apple's iPhones, plans to make "8K+5G" displays, which have the very latest ultra-sharp 8K definition and can accommodate ultra-fast 5G wireless speeds.
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Why set up shop in the United States, when all LCD panels currently are made in Asia, where lower labor costs and other factors can help keep prices down?
"Number one, the United States is still the largest (consumer) market in the world," Gou said.
In addition, the company last year acquired Japan'sSharp Corp.(SHCAF), and having a "Made In The U.S.A." tagline will be advantageous when the company markets Sharp brand next-generation televisions in the nation, Gou said.
The new plant will be located in southeast Wisconsin, most likely in Racine or Kenosha counties, but no precise site has been chosen yet. Gov. Scott Walker, who joined Gou at a signing ceremony for the memorandum of understanding at the Milwaukee Art Museum on Thursday, said the site, when chosen, will come to be known as "Wisconn Valley."
If the Taiwanese company lives up to its commitments of jobs, it will receive up to $3 billion in subsidies from state taxpayers over 15 years.
The jobs, including engineering and other high-tech positions, will pay an average annual salary of more than $53,000 plus overtime and benefits, Gou said.
The Foxconn(FXCOF) campus will represent the largest greenfield investment by a foreign-based company in U.S. history, according to Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce, which was integral in helping attract Foxconn(FXCOF) to the state.
Beyond choosing to open a plant in the U.S. because of the importance of the consumer market and the "Made In The U.S.A." label to his company's future, Gou was asked why, in particular, he chose to put it in Wisconsin.
In the interview, he outlined these reasons:
1. Foxconn(FXCOF) has corporate partners and potential partners that already are based in Wisconsin. Gou specifically mentioned GE Healthcare, Rockwell Automation(ROK), Johnson Controls(JCI) and Harley-Davidson(HOG). "Harley motors -- the best!" Gou said.
2. Wisconsin's geographic location is advantageous, Gou said. "Wisconsin and Milwaukee are at the center of the United States," he said. The state also is close to Chicago, a global hub, Gou noted.
3. Wisconsin has the transportation and logistics to accommodate the company's growth, Gou said, including access to railroad lines, Milwaukee'sGeneral Mitchell International Airport and Chicago'sO'Hare International Airport.
4. Wisconsin's tradition as a manufacturing mecca is appealing to Gou, who believes the state can rise again as a beacon of advanced manufacturing deploying robotics and artificial intelligence. "You have a good (manufacturing) foundation," Gou said.
5. The state has a strong university and technical college systems that can be leveraged to develop the high-tech workforce the company will need. "We want to hire returning soldiers," Gou said.
6. The state's proximity to Lake Michigan provides an abundant supply of fresh water, which is a critical component in the production of glass panels. Gou said the company plans to use, clean and reuse water.
7. The availability and reliability of energy in the state will be a key asset for the company, Gou said. Renewable energy will be an important part of the company's future, he said.
8. The responsiveness of the public and private partners in Wisconsin far exceeded those of other states, Gou said. He singled out the cooperation of Walker, House Speaker Paul Ryan and private partners such as the MMAC. Gou also praised President Donald Trump's determination to resurrect U.S. manufacturing.
"These key people pushed very hard," Gou said.
Steve Jagler is the business editor of the Milwaukee Journal Sentinel. He can be reached at steve.jagler@journalsentinel.com
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