(Reuters) - Foxconn Technology Group is reconsidering plans to make advanced liquid crystal display panels at a $10 billion Wisconsin campus, and said it intends to hire mostly engineers and researchers rather than the manufacturing workforce the project originally promised.

Announced at a White House ceremony in 2017, the 20-million square foot campus marked the largest greenfield investment by a foreign-based company in U.S. history and was praised by President Donald Trump as proof of his ability to revive American manufacturing.

Foxconn, which received controversial state and local incentives for the project, initially planned to manufacture advanced large screen displays for TVs and other consumer and professional products at the facility, which is under construction. It later said it would build smaller LCD screens instead.

Now, those plans may be scaled back or even shelved, Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, told Reuters. He said the company was still evaluating options for Wisconsin, but cited the steep cost of making advanced TV screens in the United States, where labor expenses are comparatively high.

“In terms of TV, we have no place in the U.S.,” he said in an interview. “We can’t compete.”

When it comes to manufacturing advanced screens for TVs, he added: “If a certain size of display has more supply, whether from China or Japan or Taiwan, we have to change, too.”

Rather than a focus on LCD manufacturing, Foxconn wants to create a “technology hub” in Wisconsin that would largely consist of research facilities along with packaging and assembly operations, Woo said. It would also produce specialized tech products for industrial, healthcare, and professional applications, he added.

“In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment,” Woo said.

Earlier this month, Foxconn, a major supplier to Apple Inc., reiterated its intention to create 13,000 jobs in Wisconsin, but said it had slowed its pace of hiring. The company initially said it expected to employ about 5,200 people by the end of 2020; a company source said that figure now looks likely to be closer to 1,000 workers.

Related Coverage Wisconsin governor's office says evaluating shift in Foxconn LCD display project

It is unclear when the full 13,000 workers will be hired.

But Woo, in the interview, said about three-quarters of Foxconn’s eventual jobs will be in R&D; and design - what he described as “knowledge” positions - rather than blue-collar manufacturing jobs. Foxconn is formally known as Hon Hai Precision Industry Co.\

Rather than manufacturing LCD panels in the United States, Woo said it would be more profitable to make them in greater China and Japan, ship them to Mexico for final assembly, and import the finished product to the United States.

He said that would represent a supply chain that fits with Foxconn’s current “fluid, good business model.”

Heavily criticized in some quarters, the Foxconn project was championed by former Wisconsin Governor Scott Walker, a Republican who helped secure around $4 billion in tax breaks and other incentives before leaving office. Critics of the deal, including a number of Democrats, called it a corporate giveaway that would never result in the promised manufacturing jobs and posed serious environmental risks.

“Every step of the way Foxconn has overpromised and under-delivered,” Democrat Gordon Hintz, the minority party leader in the state assembly, said in a Wednesday statement. “This news is devastating for the taxpayers of Wisconsin.”

The company’s own growth projections and employment goals suggest the taxpayer investment would take at least 25 years to recoup, according to budget think tank the Wisconsin Budget Project.

Foxconn CEO Gou plans to meet with Wisconsin’s new Democratic governor, Tony Evers, a past critic of the deal, later this year to discuss modifications of the agreement, according to the source familiar with the company’s thinking.

The Office of the Governor said in a Wednesday statement it has been in contact with senior leadership at Foxconn since the Reuters story was published. Evers’ aide Joel Brennan said the team was “surprised” by the development.

FILE PHOTO: A shovel and FoxConn logo are seen before the arrival of U.S. President Donald Trump as he participates in the Foxconn Technology Group groundbreaking ceremony for its LCD manufacturing campus, in Mount Pleasant, Wisconsin, U.S., June 28, 2018. REUTERS/Darren Hauck

Some “details about the continuing evolution of this project will require further review and evaluation,” Brennan said in the statement.

Currently, to qualify for the tax credits Foxconn must meet certain hiring and capital investment goals. It fell short of the employment goal in 2018 - hiring 178 full-time jobs rather than the 260 targeted - failing to earn a tax credit of up to $9.5 million.

The company may be prepared to walk away from future incentives if it is unable to meet Wisconsin’s job creation and capital investment requirements, according to the source familiar with the matter.</s>Image copyright AFP/Getty Image caption Foxconn initially said it would invest $10bn in a new manufacturing facility in Wisconsin

Foxconn, which raised hopes of a US manufacturing revival by announcing a new factory in Wisconsin, is now reconsidering its plans.

The Taiwanese manufacturing giant no longer expects to make liquid crystal display panels at the Wisconsin plant, a company official told Reuters.

It plans to hire mostly engineers and researchers not manufacturing workers.

The changes are a significant shift from the firm's plans announced at a White House ceremony in 2017.

At the time, US President Donald Trump claimed credit for landing the investment, which he said was a sign his policies were returning investment to the US.

The yet-to-be-built facility was the "eighth wonder of the world", he said at a groundbreaking ceremony last summer.

Foxconn, a major Apple supplier, had pledged to invest $10bn (£7.6bn) in the plant, which was expected to initially employ 3,000 people, with a potential for up to 13,000, mainly entry-level jobs.

New realities

In a statement on Wednesday, Foxconn cited a changed global marketplace, saying all of its projects are being "adjusted to meet these new realities."

"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. As we have previously noted, the global market environment that existed when the project was first announced has changed," the company said.

The state of Wisconsin had agreed to support the project with controversial incentives worth more than $3bn.

Critics of those incentives had long said they did not think that Foxconn would deliver on its promises.

The firm has already fallen short of yearly hiring goals, preventing its receipt of tax credits last year.

Image copyright Getty Images Image caption Donald Trump called the Foxconn plant the "eighth wonder of the world" at its June 2018 groundbreaking

Louis Woo, special assistant to Foxconn boss Terry Gou, told Reuters that the firm was still evaluating options for Wisconsin - including creating a "technology hub" made up largely of research facilities for high-tech products aimed at health care, industrial.

But he said high labour costs in the US meant making advanced TV screens didn't make sense.

"In terms of TV, we have no place in the US," he told Reuters. "We can't compete."</s>MADISON, Wis. — Foxconn Technology Group said Wednesday it is shifting the focus of its planned Wisconsin campus away from blue-collar manufacturing to a research hub, while insisting it remains committed to creating 13,000 jobs as promised.

The much-ballyhooed facility was heralded by President Donald Trump and former Wisconsin Gov. Scott Walker as a once-in-a-generation opportunity to return manufacturing to the Midwest and the United States. Foxconn, a major supplier to Apple, is the world’s largest contract maker of electronics and China’s largest private employer.

In a statement Wednesday, Foxconn said it remains committed to the project, the creation of 13,000 jobs and “to our long-term investment in Wisconsin.” But because the global market environment that existed when the project was first announced in 2017 has shifted, “this has necessitated the adjustment of plans for all projects, including Wisconsin.”

Foxconn previously said it could invest as much as $10 billion in the project, but did not recommit to that number in Wednesday’s statement.

Louis Woo, special assistant to Foxconn CEO Terry Gou, told Reuters in a story published Wednesday that it is scaling back and possibly shelving plans to build liquid crystal display panel screens.

“In terms of TV, we have no place in the U.S.,” Woo told Reuters. “We can’t compete.”

Woo said a factory would not be built in Wisconsin: “You can’t use a factory to view our Wisconsin investment.”

Instead, Woo said Foxconn wants to create a “technology hub” that would largely consist of research facilities along with packaging and assembly operations. Woo said about three-quarters of the jobs created will be in research and development and design, rather than blue-collar manufacturing jobs.

Foxconn said in its statement that it was broadening its base of investment in Wisconsin to ensure the company and workforce will be positioned for long-term success. That includes focusing on research and development in advanced industrial internet technologies and producing high-tech applications and solutions for industries such as education, medical and health care, entertainment and sports, security, and smart cities, Foxconn said.

“Every step of the way Foxconn has overpromised and under-delivered,” said Democratic Wisconsin Assembly Minority Leader Gordon Hintz in a statement. “This news is devastating for the taxpayers of Wisconsin. We were promised manufacturing jobs. We were promised state of the art LCD production. We were promised a game-changing economic opportunity for our state. And now, it appears Foxconn is living up to their failed track record in the U.S. — leaving another state and community high and dry.”

The Taiwan-based company billed the massive 20 million-square-foot Wisconsin campus as its first North American manufacturing site for the next generation of liquid crystal display panels to be used in a wide variety of products, including large-screen TVs, self-driving cars, notebooks and other monitors.

Wisconsin state and local governments promised roughly $4 billion to Foxconn, the largest incentive in state history and the biggest promised by a state to a foreign corporation in U.S. history. Foxconn was required to invest $10 billion and create 13,000 jobs to get the full incentives.

It hired 178 full-time employees rather than the 260 targeted in 2018, failing to earn a state tax credit worth up to $9.5 million.

The president of Wisconsin’s Technology Council, Tom Still, said he’s not surprised that Foxconn wants to change course since televisions are becoming less expensive and iPhone sales are declining.

Still, a supporter of the project, noted the company has already invested as much as $200 million in Wisconsin so he’s not worried that the company might pull out.

“I do think that it’s likely that they’ll adjust to what the market conditions are,” said Still, whose group nurtures tech in Wisconsin and advises state leaders on policy.</s>Foxconn Technology Group is reconsidering plans to make advanced liquid crystal display panels at a US$10 billion Wisconsin campus, and said it intends to hire mostly engineers and researchers rather than the manufacturing workforce the project originally promised.

REUTERS: Foxconn Technology Group is reconsidering plans to make advanced liquid crystal display panels at a US$10 billion Wisconsin campus, and said it intends to hire mostly engineers and researchers rather than the manufacturing workforce the project originally promised.

Announced at a White House ceremony in 2017, the 20-million square foot campus marked the largest greenfield investment by a foreign-based company in U.S. history and was praised by President Donald Trump as proof of his ability to revive American manufacturing.

Foxconn, which received controversial state and local incentives for the project, initially planned to manufacture advanced large screen displays for TVs and other consumer and professional products at the facility, which is under construction. It later said it would build smaller LCD screens instead.

Now, those plans may be scaled back or even shelved, Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, told Reuters. He said the company was still evaluating options for Wisconsin, but cited the steep cost of making advanced TV screens in the United States, where labor expenses are comparatively high.

"In terms of TV, we have no place in the U.S.," he said in an interview. "We can't compete."

When it comes to manufacturing advanced screens for TVs, he added: “If a certain size of display has more supply, whether from China or Japan or Taiwan, we have to change, too.”

Rather than a focus on LCD manufacturing, Foxconn wants to create a "technology hub" in Wisconsin that would largely consist of research facilities along with packaging and assembly operations, Woo said. It would also produce specialized tech products for industrial, healthcare, and professional applications, he added.

“In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment,” Woo said.

Earlier this month, Foxconn, a major supplier to Apple Inc., reiterated its intention to create 13,000 jobs in Wisconsin, but said it had slowed its pace of hiring. The company initially said it expected to employ about 5,200 people by the end of 2020; a company source said that figure now looks likely to be closer to 1,000 workers.

It is unclear when the full 13,000 workers will be hired.

But Woo, in the interview, said about three-quarters of Foxconn's eventual jobs will be in R&D and design - what he described as "knowledge" positions - rather than blue-collar manufacturing jobs. Foxconn is formally known as Hon Hai Precision Industry Co.

Rather than manufacturing LCD panels in the United States, Woo said it would be more profitable to make them in greater China and Japan, ship them to Mexico for final assembly, and import the finished product to the United States.

He said that would represent a supply chain that fits with Foxconn's current "fluid, good business model."

Heavily criticized in some quarters, the Foxconn project was championed by former Wisconsin Governor Scott Walker, a Republican who helped secure around US$4 billion in tax breaks and other incentives before leaving office. Critics of the deal, including a number of Democrats, called it a corporate giveaway that would never result in the promised manufacturing jobs and posed serious environmental risks.

The company’s own growth projections and employment goals suggest the taxpayer investment would take at least 25 years to recoup, according to budget think tank the Wisconsin Budget Project.

Foxconn CEO Gou plans to meet with Wisconsin's new Democratic governor, Tony Evers, a past critic of the deal, later this year to discuss modifications of the agreement, according to the source familiar with the company's thinking.

Evers could not be reached for comment.

Currently, to qualify for the tax credits Foxconn must meet certain hiring and capital investment goals. It fell short of the employment goal in 2018 - hiring 178 full-time jobs rather than the 260 targeted - failing to earn a tax credit of up to US$9.5 million.

The company may be prepared to walk away from future incentives if it is unable to meet Wisconsin's job creation and capital investment requirements, according to the source familiar with the matter.</s>MADISON, Wis. — Foxconn Technology Group said Wednesday it is shifting the focus of its planned $10 billion Wisconsin campus away from blue-collar manufacturing to a research hub, while insisting it remains committed to creating 13,000 jobs as promised.

The much-ballyhooed facility was heralded by President Donald Trump and former Wisconsin Gov. Scott Walker as a once-in-a-generation opportunity to return manufacturing to the Midwest and the United States. Foxconn, a major supplier to Apple, is the world's largest contract maker of electronics and China's largest private employer.

In a statement Wednesday, Foxconn said it remains committed to the project, the creation of 13,000 jobs and "to our long-term investment in Wisconsin." But because the global market environment that existed when the project was first announced in 2017 has shifted, "this has necessitated the adjustment of plans for all projects, including Wisconsin."

Louis Woo, special assistant to Foxconn CEO Terry Gou, told Reuters in a story published Wednesday that its plans to build liquid crystal display panel screens are being scaled back and possibly shelved.

"In terms of TV, we have no place in the U.S.," Woo told Reuters. "We can't compete."

Woo said a factory would not be built in Wisconsin: "You can't use a factory to view our Wisconsin investment."

Instead, Woo said Foxconn wants to create a "technology hub" that would largely consist of research facilities along with packaging and assembly operations. Woo said about three-quarters of the jobs created will be in research and development and design, rather than blue-collar manufacturing jobs.

Foxconn said in its statement that it was broadening its base of investment in Wisconsin to ensure the company and workforce will be positioned for long-term success. That includes focusing on research and development in advanced industrial internet technologies and producing high-tech applications and solutions for industries such as education, medical and health care, entertainment and sports, security, and smart cities, Foxconn said.

The Taiwan-based company billed the massive 20 million-square-foot (1.86 million-square-meter) Wisconsin campus as its first North American manufacturing site for the next generation of liquid crystal display panels to be used in a wide variety of products, including large-screen TVs, self-driving cars, notebooks and other monitors.

Wisconsin state and local governments promised roughly $4 billion to Foxconn, the largest incentive in state history and the biggest promised by a state to a foreign corporation in U.S. history. Foxconn was required to invest $10 billion and create 13,000 jobs to get the full incentives.

It hired 178 full-time jobs rather than the 260 targeted in 2018, failing to earn a state tax credit worth up to $9.5 million.

A spokeswoman for Wisconsin Gov. Tony Evers, a Democrat who was critical of Foxconn in the campaign against Walker, did not immediately return a message seeking comment. A spokesman for the Wisconsin Economic Development Corporation, which brokered the deal with Foxconn, also did not immediately return a message.

Wisconsin Republican legislative leaders who pushed the Foxconn project also did not immediately return messages Wednesday.

Democratic critics, including Evers, said the incentives promised to Foxconn were too rich and questioned whether the company would ever fulfill its job creation and investment promises. They also said the massive plant that was relying on water from nearby Lake Michigan posed serious environmental risks .

"Every step of the way Foxconn has overpromised and under-delivered," said Democratic Wisconsin Assembly Minority Leader Gordon Hintz in a statement. "This news is devastating for the taxpayers of Wisconsin. We were promised manufacturing jobs. We were promised state of the art LCD production. We were promised a game-changing economic opportunity for our state. And now, it appears Foxconn is living up to their failed track record in the U.S. — leaving another state and community high and dry."</s>Foxconn, the giant Taiwanese company that announced plans for a $10 billion display-making factory in Wisconsin, now says it is rethinking the project’s focus because of “new realities” in the global marketplace.

The project was hailed by President Trump at a groundbreaking in June as the “eighth wonder of the world” and an example of his efforts to attract foreign investment to create manufacturing jobs.

The company said Wednesday it remains committed to creating as many as 13,000 jobs in Wisconsin, and that it is considering opportunities involving flat-screen technology. But it said it’s “examining ways for Wisconsin’s knowledge workers to promote research and development.”

“The global market environment that existed when the project was first announced has changed,” Foxconn said.

Foxconn is a supplier to Apple and other tech giants. It was lured to Wisconsin in 2017 after former Gov. Scott Walker and state lawmakers agreed to more than $4 billion in tax credits and other inducements over 15 years. Those subsidies amounted to $15,000 to $19,000 per job annually, for a plant that the company said would employ as many as 13,000 workers in Mount Pleasant, near Racine.

The prospective shift by Foxconn was met with dismay. “This news is devastating for the taxpayers of Wisconsin,” said Assemblyman Gordon Hintz, the Democratic minority leader.

Some Wisconsin Republicans blamed the company’s change in plans on the election of Gov. Tony Evers, a Democrat, to succeed Walker, a Republican, in November.

The plans for the plant have changed over time. Early estimates called for a majority of the staff to be hourly workers assembling flat-screen devices. In August, the company said that it would be more of a research center employing engineers and scientists as 80 percent of the staff.</s>Foxconn is reconsidering plans to make advanced liquid crystal display panels at a $10 billion Wisconsin campus, and said it intends to hire mostly engineers and researchers rather than the manufacturing workforce the project originally promised.

Announced at a White House ceremony in 2017, the 20-million square foot campus marked the largest greenfield investment by a foreign-based company in U.S. history and was praised by President Donald Trump as proof of his ability to revive American manufacturing.

Foxconn, which received controversial state and local incentives for the project, initially planned to manufacture advanced large screen displays for TVs and other consumer and professional products at the facility, which is under construction. It later said it would build smaller LCD screens instead.

Now, those plans may be scaled back or even shelved, Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, told Reuters. He said the company was still evaluating options for Wisconsin, but cited the steep cost of making advanced TV screens in the United States, where labor expenses are comparatively high.

"In terms of TV, we have no place in the U.S.," he said in an interview. "We can't compete."

When it comes to manufacturing advanced screens for TVs, he added: “If a certain size of display has more supply, whether from China or Japan or Taiwan, we have to change, too.”

Rather than a focus on LCD manufacturing, Foxconn wants to create a "technology hub" in Wisconsin that would largely consist of research facilities along with packaging and assembly operations, Woo said. It would also produce specialized tech products for industrial, healthcare, and professional applications, he added.

“In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment,” Woo said.

Earlier this month, Foxconn, a major supplier to Apple, reiterated its intention to create 13,000 jobs in Wisconsin, but said it had slowed its pace of hiring. The company initially said it expected to employ about 5,200 people by the end of 2020; a company source said that figure now looks likely to be closer to 1,000 workers.

It is unclear when the full 13,000 workers will be hired.

But Woo, in the interview, said about three-quarters of Foxconn's eventual jobs will be in R&D and design — what he described as "knowledge" positions — rather than blue-collar manufacturing jobs. Foxconn is formally known as Hon Hai Precision Industry Co.

Rather than manufacturing LCD panels in the United States, Woo said it would be more profitable to make them in greater China and Japan, ship them to Mexico for final assembly, and import the finished product to the United States.

He said that would represent a supply chain that fits with Foxconn's current "fluid, good business model."

Heavily criticized in some quarters, the Foxconn project was championed by former Wisconsin Governor Scott Walker, a Republican who helped secure around $4 billion in tax breaks and other incentives before leaving office. Critics of the deal, including a number of Democrats, called it a corporate giveaway that would never result in the promised manufacturing jobs and posed serious environmental risks.

The company’s own growth projections and employment goals suggest the taxpayer investment would take at least 25 years to recoup, according to budget think tank the Wisconsin Budget Project.</s>Foxconn Technology Group said Wednesday it is shifting the focus of its planned $10-billion US Wisconsin campus away from blue-collar manufacturing to a research hub while insisting it remains committed to creating 13,000 jobs.

The much-ballyhooed facility was heralded by President Donald Trump and onetime Wisconsin Gov. Scott Walker as a once-in-a-generation opportunity to return manufacturing to the Midwest and the United States. Foxconn, a major supplier to Apple, is believed to be the world's largest contract maker of electronics and China's largest private employer.

In a statement Wednesday, Foxconn said it remains committed to the project, the creation of 13,000 jobs and "to our long-term investment in Wisconsin." But because the global market environment that existed when the project was first announced in 2017 has shifted, "this has necessitated the adjustment of plans for all projects, including Wisconsin."

Louis Woo, special assistant to Foxconn CEO Terry Gou, told Reuters in a story published Wednesday that its plans to build liquid crystal display panel screens are being scaled back and possibly shelved.

"In terms of TV, we have no place in the U.S.," Woo told Reuters. "We can't compete."

Woo said it would be more profitable to make LCD panels in greater China and Japan, ship them to Mexico for final assembly, and import the finished product to the United States.

He said that would represent a supply chain that fits with Foxconn's current "fluid, good business model."

Woo said a factory would not be built in Wisconsin: "You can't use a factory to view our Wisconsin investment."

Instead, Woo said, Foxconn wants to create a "technology hub" that would largely consist of research facilities along with packaging and assembly operations. Woo said about three-quarters of the jobs created will be in research and development and design, rather than blue-collar manufacturing jobs.

That raises the prospect, given Wisconsin's labour force demographics, that many qualified engineers and other tech professionals would have to be recruited from out of state.

Foxconn said in its statement that it was broadening its base of investment in Wisconsin to ensure the company and workforce will be positioned for long-term success. That includes focusing on research and development in advanced industrial internet technologies and producing high-tech applications and solutions for industries such as education, medical and health care, entertainment and sports, security and smart cities, Foxconn said.

The Taiwan-based company billed the massive 1.86-million-square-metre Wisconsin campus as its first North American manufacturing site for the next generation of liquid crystal display panels to be used in a wide variety of products, including large-screen TVs, self-driving cars, notebooks and other monitors.

Wisconsin state and local governments promised roughly $4 billion to Foxconn, the largest incentive in state history and the biggest promised by a state to a foreign corporation in U.S. history. Foxconn was required to invest $10 billion and create 13,000 jobs to get the full incentives.

It hired 178 full-time jobs rather than the 260 targeted in 2018, failing to earn a state tax credit worth up to $9.5 million.

A spokesperson for Wisconsin Gov. Tony Evers, a Democrat who was critical of Foxconn in the campaign against Walker, did not immediately return a message seeking comment. A spokesman for the Wisconsin Economic Development Corporation, which brokered the deal with Foxconn, also did not immediately return a message.

Wisconsin Republican legislative leaders who pushed the Foxconn project also did not immediately return messages Wednesday.

The White House had no immediate comment Wednesday. Last summer, Trump highlighted his economic policies at a groundbreaking event for the massive Foxconn complex, which state officials initially said could house 11 football fields.

"America is open for business more than it has ever been open for business. Made in the USA: It's all happening and it's happening very, very quickly," Trump said in June after visiting the Foxconn site. "Today we're seeing the results of the pro-America agenda. America First, Make America Great Again. Greatest phrase ever used in politics, I suspect."

Democratic critics, including Evers, said the incentives promised to Foxconn were too rich and questioned whether the company would ever fulfill its job creation and investment promises. They also said the massive plant that was relying on water from nearby Lake Michigan posed serious environmental risks.

"Foxconn has broken its promises in Pennsylvania, Brazil, China, and now Wisconsin. Everywhere they've gone, they have exploited taxpayers to line their pockets," Democratic state legislator Jimmy Anderson said on Twitter on Wednesday. Anderson's social media post was retweeted by Mark Pocan, a Democratic congressman representing Wisconsin on Capitol Hill in Washington.

Gordon Hintz, Democratic Wisconsin Assembly minority leader, said in a statement that revised Foxconn plans were "devastating for the taxpayers of Wisconsin."

"Every step of the way Foxconn has overpromised and under-delivered," said Hintz.

"And now, it appears Foxconn is living up to their failed track record in the U.S. — leaving another state and community high and dry."</s>BEIJING -- Foxconn Technology Group said it is reassessing its ambitious Wisconsin display factory, considering using the site for research purposes rather than just display manufacturing as originally promised because of high costs associated with production.

The change comes after Foxconn, the Taiwanese contract manufacturer and supplier to Apple Inc., fell short of a job-creation target in Wisconsin last year to obtain tax credits, amid a tight U.S. labor market. The Wall Street Journal reported in November that Foxconn was considering bringing in engineers from China as it grappled to find personnel locally.

The company on Wednesday cited change in the global market environment as a reason for its reconsideration of the facility's use without detailing what those changes were. It said it remains committed to its plan to create 13,000 jobs.

Louis Woo, special assistant to Foxconn Chairman Terry Gou, said high costs in the U.S. would make it difficult for Foxconn to compete with rivals should it manufacture displays in Wisconsin.

The company, in a separate statement, said it remains committed to its plan to create 13,000 jobs and that the Wisconsin project remains its priority.

In its original plan, Foxconn promised the state of Wisconsin that it would invest $10 billion and build a 22-million-square-foot liquid-crystal display panel plant, hiring 13,000 employees, primarily factory workers. Foxconn's move was praised by President Trump, who has been calling to bring manufacturing jobs back to the U.S.

Foxconn was set to receive nearly $4 billion in state and local incentives, much of it dependent on whether the company could meet hiring, wage and investment targets by various dates.

Reuters first reported on Foxconn's plan to use the Wisconsin site also for research.

Taiwan-based Foxconn, the world's largest electronics contract manufacturer, makes devices such as Apple's iPhones mostly in China. The company is in a potentially vulnerable spot as China and U.S. engage in a trade battle involving tariffs.

In recent years, Foxconn, formally known as Hon Hai Precision Industry Co., has been looking to diversify its manufacturing sites. In 2017, it announced the Wisconsin plant plan, while recently it has been considering producing iPhones in India, according to people familiar with the matter.

Foxconn has invested $213 million into its Indian subsidiary between September and January, the company said in a Taiwan stock exchange filing last week. It also said that it has acquired rights to use land in Vietnam.

Prior to the Wisconsin project, Foxconn's discussions to expand U.S. manufacturing hadn't materialized. In 2013, Foxconn said it might invest $40 million in Pennsylvania for manufacturing and research facilities. In 2014, Foxconn's founder, Mr. Gou, said he was studying the feasibility of an advanced-display manufacturing plant in the U.S. Neither idea made headway.

Wisconsin Gov. Tony Evers and other state Democrats have said the incentive package given to Foxconn was too large and have highlighted concerns over the company's changing plans. Foxconn's plan had been announced under the previous governor, Scott Walker, a Republican.</s>The global economic climate – roiled by Trump's trade war with China where Foxconn has most of its assembly lines – leads officials at Foxconn to look again at the plans

TAIPEI, Taiwan – Taiwanese electronics giant Foxconn said Thursday, January 31, it was reassessing plans to build a cutting-edge factory in Wisconsin, which Donald Trump once hailed as part of flagship drive to revive America's manufacturing sector.

Foxconn, which makes devices and components for a host of major tech firms including Apple, had planned to build the $10 billion plant to make LCD flat screen televisions and create around 13,000 jobs.

The investment was backed by $4 billion in controversial tax breaks and embraced by Trump, who described it as evidence of his "America First" plan in action when announced in 2017.

A year later he appeared alongside Foxconn CEO Terry Gou at a groundbreaking ceremony proclaiming: "This is just the beginning. This is one of the largest plants in the world."

But the global economic climate – roiled by Trump's trade war with China where Foxconn has most of its assembly lines – has led officials at the Taiwanese company to look again at the plans.

"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," Foxconn said in a statement Thursday.

Earlier reports quoted Louis Woo, an assistant to Gou, suggesting the company might scrap the flat screen factory and hire more high-skilled engineers for research and development – leading to far fewer blue-collar jobs.

In its statement, Foxconn said it remained committed to building its science park in Wisconsin and "the creation of 13,000 jobs".

It added that "in addition to our consideration of plans to produce traditional products such as television sets" the company was also examining ways for Wisconsin's "knowledge workers" to promote research and development and produce "high-tech applications and solutions".

Woo also told Bloomberg there was "no scrapping of our plans".

But he added: "Given global economic conditions and the trade tensions between China and the US... it's impossible that we can always stay committed to our original plan without any change."

As news of the announcement emerged and speculation about the future of the deal swirled, the firm released another statement insisting its was moving forward with "an advanced manufacturing facility in Wisconsin" and insisting it would create 13,000 jobs.

The update gave a list of facilities it planned to build in the next 18 months, including a "liquid crystal module backend packaging plant" – but it was unclear if that was the same as the factory promised by Guo in 2017.

Trump came to power on the back of a promise to revitalise US manufacturing and create millions of jobs, crucially wooing blue-collar workers.

However, the latest news could dent the image he likes to project of the dealer-in-chief who can deliver, and comes soon after he backed down in his standoff with Democrats over his Mexican border wall in a dispute that closed the government for a month.

"Trump claimed credit for Foxconn’s planned investment in manufacturing in the United States, repeatedly pointing to Foxconn’s promise as evidence that his economic agenda was working," a statement from the Democratic National Committee said. "But now, Foxconn is looking at moving its manufacturing to China instead."

Meanwhile the US economy showing signs of slowing just as campaigning for the 2020 election gears up, with the state of Wisconsin a key battleground.

While Trump has not responded to the Foxconn announcement CNN quoted an official as saying: "The president has created one of the strongest business climates in American history because he lowered taxes and massively cut regulations.

"While it's encouraging Foxconn will bring 13,000 new jobs and billions of dollars to Wisconsin, we would be disappointed by (any) reductions to the initial investment."

Foxconn, officially known as Hon Hai Precision Industry, is one of many key tech companies who find themselves buffeted by the trade war.

The world's largest contract-electronics manufacturer assembles most of its products on the Chinese mainland but many of its gadgets are sold in the United States, leaving it vulnerable to Trump's tariffs.

Its Wisconsin investment has not been without controversy.

The state's Republican former Governor Scott Walker – a vocal supporter of the plant – was defeated last year by a Democrat who said the huge tax breaks offered to Foxconn risked negating the jobs it created.

It has also struggled to meet the hiring targets that were part of the deal. – Rappler.com
Taiwanese manufacturer Foxconn announces that the company is reconsidering their plan to manufacture LCD panels in a promised Wisconsin plant because of a changed global marketplace, and the high cost of United States labor. Foxconn said, earlier in January, that it still planned to create 13,000 jobs in Wisconsin. The State of Wisconsin pledged subsidies worth more than $3bn.