Foxconn Signs MOU With State For $3 Billion In Incentives

Foxconn agreement
Terry Gou, founder and CEO of Foxconn Technology Group, explains how he sees Wisconn Valley taking shape. (photo by Matt Binetti) Japan

Gov. Scott Walker and Foxconn Technology Group CEO Terry Gou signed a memorandum of understanding Thursday that lays the groundwork for Wisconn Valley, a massive electronics manufacturing facility to be built in southeast Wisconsin.

The entire Foxconn complex will be located on at least 1,000 acres of land – or about 1.56 sq. miles, include 20 million square foot campus, and jobs that pay an average salary of $53,875, plus benefits. While no precise location of the plant has been announced, Racine County Eye has learned that a commercial real estate firm is negotiating for Foxconn with property owners in Mount Pleasant and Sturtevant.

The plant which will manufacture LCD panels that will go into technology such as an 8k digital microscope.

“Right now all of those LCD panels are made in Asia,” Walker said. “No longer will that be the case. They will be made in America proudly in the great state of Wisconsin.”

Wisconn Valley Incentive Package

For the Wisconsin’s part, the state agrees to give Foxconn a $3 billion 15-year incentive package loaded with tax breaks and credits.

“Which is big, it’s bigger than anything we’ve ever done before,” Walker said. “But if you wanna play in the big leagues it’s comparable with just about every other major financial incentive like this for a major project anywhere not only in this country but around the world.”

And the state has would expand tax increment financing (TIF) limits to allow local municipalities, “To use TIF in innovative ways,” according to the memorandum.

A fact sheet from the state said the plant should be operational by 2020. Walker said Thursday that the investment and facility would indirectly create another 22,000 jobs.

Location not given for Foxconn

Sources, who wished not to be named, have told Racine County Eye that the project may stretch all the way to Highway KR, between Interstate 94 and Highway H. They also said the project could also dip into Kenosha County.

According to a story by the Journal Sentinel:

Two people who own land in one of the potential Foxconn development sites have told the Journal Sentinel that they are being offered $50,000 an acre for their properties, which are mainly farmland.

Without any word on where the facility will end up, Mount Pleasant Village president Dave DeGroot — who attended the event — said he hopes it comes to Mount Pleasant.

“Just to be in the game is amazing. I just have high hopes that things will work out well for us,” he said.

The reason Foxconn chose Wisconsin for the facility was because of the people here and the leader, Walker.

“This my home, my home, Wisconsin,” Gou said.

Walker also offered high praise for Gou, and even said he would be his “friend forever.”

Gale Klappa, a non-executive Chairman for WEC Energy Group said: “Wisconsin now stands at the epicenter of a high-tech industry that simply does not exist in the United States today.

Listen to the entire audio:

Related stories:

https://www.racinecountyeye.com/foxconn-to-build-10-billion-manufacturing-campus-here/

https://www.racinecountyeye.com/foxconn-wisconn-valley-numbers/

Eye on Business

Denise Lockwood
About Denise Lockwood 2768 Articles
Denise Lockwood has an extensive background in traditional and non-traditional media. She has written for Patch.com, the Milwaukee Business Journal, Milwaukee Magazine and the Kenosha News.