Foxconn and Wisconsin’s WEDC Announce Additional 4-Year Investment

Press release from the issuing company:

Foxconn (Hon Hai Technology Group, TWSE:2317) will broaden its investment in Wisconsin to artificial intelligence infrastructure, the backbone of the AI industrial build-out in the United States, following a nod by the Wisconsin Economic Development Corporation (WEDC) that paves the way for nearly 1,400 new jobs over the next four years in Racine County.

The world’s largest electronic manufacturing service provider is expanding its Wisconsin manufacturing footprint to meet rising demand from US customers and strengthen domestic supply chains for advancing innovation in data management and resilient, next- generation technological capabilities for the future.

“WEDC has been committed to ensuring Foxconn’s success and growth in our state,” said Sam Rikkers, deputy secretary and chief operating officer of WEDC, the state’s leading economic development organization. “This new amendment reflects Foxconn’s status as one of the many leading global manufacturers that have chosen to grow in Wisconsin.”

“As the demand for more data infrastructure continues to rise, Foxconn will keep responding to our customers’ needs with flexibility and at scale in the United States,” said Jerry Hsiao, Foxconn’s chief rpoduct officer and GM of Hon Hai USA. “Wisconsin accounts for close to a fourth of our workforce in America, and this second- stage project will double that presence in the state by the end of this decade.”

The WEDC Board of Directors approved the company’s plans to invest an additional $569 million to expand its operations in Racine County, which will create 1,374 new jobs over the next four years. As part of the contract amendment, WEDC will provide up to $16 million in additional performance-based tax incentives to Foxconn, from the first-stage investment that was revised in 2021.

With this new expansion, Foxconn is eligible to earn up to a total of $96 million in performance-based tax credits under the state’s Electronics, Information Technology, and Manufacturing Zone (EITMZ) program through Dec. 31, 2029. Under the amended contract, the company will create a total of 2,616 jobs and make a total of $1.2 billion in capital investments during that period.

This is Foxconn’s second contract amendment with WEDC. In 2021, the company and WEDC approved an amendment enabling Foxconn to earn up to $80 million in EITMZ credits by the end of 2025 based on the company’s planned investment of $672 million and creation of 1,454 jobs by Dec. 31, 2025, which Foxconn is on track to do.

Foxconn leads the global server market, underpinning everyday digital services – from streaming and online shopping to digital banking and smart devices – by providing secure, scalable data server products infrastructure. Foxconn has spent over $2 billion in Wisconsin over the last several years across payroll, capital expenditures, and taxes, creating approximately 1,500 jobs in data server production and reinforcing the state’s position as a leading hub for advanced manufacturing and secure, high-capacity data infrastructure.