Foxconn may be reconsidering its plans for a massive Wisconsin factory.
The Chinese company said in 2017 thatwould make LCD displays and employ up to 13,000 people — including a sizable manufacturing workforce.
However, it’s reconsidering and may instead stick to hiring mostly engineering and research staff to create a “technology hub,” Reuters reported Wednesday, citing Louis Woo, a special assistant to Foxconn CEO Terry Gou.
Woo cited the high cost of labor in the US as a factor, noting that it’d be more profitable to make the displays in China and Japan, assemble them in Mexico and import the finished product to the US, according to Reuters.
Foxconn said it remains committed to the Wisconsin project and the creation of 13,000 jobs, but added that the project’s focus will be adjusted to meet the realities of the global market.
“As our plans are driven by those of our customers, this has necessitated the adjustment of plans for all projects, including Wisconsin,” said a representative for the Foxconn Technology Group in an emailed statement. “In addition to our consideration of plans to produce traditional products such as television sets, we are also examining ways for Wisconsin’s knowledge workers to promote research and development in advanced industrial internet technologies and produce high-tech applications and solutions for industries such as education, medical and healthcare, entertainment and sports, security, and smart cities.”
Last summer, President Donald Trumpas “part of the exciting story playing out across our nation” following his campaign promise to bring manufacturing to the US.
It wouldn’t be the first time Foxconn’s US ambitions have changed course. In 2013, Foxconn said it planned to never built.and create 500 jobs, but The Washington Post noted the plant was
The White House didn’t immediately respond to a request for comment.