MADISON — Foxconn, the world's largest electronics contract manufacturer, is investing $10 billion and creating 13,000 good-paying, family-supporting jobs in Wisconsin. This is the largest corporate attraction project in U.S. history as measured by jobs. To separate myth from fact, Governor Scott Walker’s office released the following information today:
Myth vs. Fact: Foxconn’s $10 Billion Investment in the State of Wisconsin
Myth: Foxconn will receive all the state tax credits regardless of the number of jobs it creates or the size of its capital investment. – False.
Fact: All tax credits are “pay-as-you-grow.” The company can only receive the full $2.85 billion in credits after it has created and maintained 13,000 jobs and made the full $10 billion in capital investment. There are strong taxpayer protection provisions in the contract that includes three guarantors who will be responsible for any clawbacks, including a personal guarantee from Foxconn Founder and Chairman Terry Gou.
Myth: Wisconsin’s return on investment will be low compared to the $2.85 billion state incentive package. – False.
Fact: An independent study from the Metropolitan Milwaukee Association of Commerce found that Foxconn will add $51 billion to Wisconsin’s GDP over 15 years – $18 for every $1 spent by the state on incentives.
Myth: Foxconn’s jobs are low-paying jobs. – False.
Fact: The average annual salary for all jobs is $53,875 plus competitive benefits packages with health insurance, vacation, and retirement contribution benefits. This is in the contract agreement signed by both Foxconn and the Wisconsin Economic Development Corporation.
Myth: Foxconn will only benefit southeastern Wisconsin. – False.
Fact: The project is already providing economic opportunities for businesses and employees across the state. Construction contractors in Dodge, Jackson, Marathon, Outagamie, Walworth and Wood counties have already received contracts during the construction phase of the project. They will directly or indirectly employ 800 workers from 60 counties in just the excavation phase of the project, which accounts for $100 million of the $10 billion in construction projects.
Foxconn is committed to putting “Wisconsin First,” and an economic impact report conducted for the company by Ernst and Young found that Foxconn will spend about $1.4 billion annually in goods and services sourced from Wisconsin. For comparison, Oshkosh Corporation is estimated to have $300 million in annual supply chain purchases impacting over 700 companies in 140 communities. Foxconn will have an impact of more than four times that amount.
Myth: Wisconsin offered more in state incentives than any other state. – False.
Fact: It has been publicly reported that Wisconsin was not the highest bidder for the Foxconn project. Wisconsin won Foxconn even though other states offered more in incentives. Foxconn Founder and Chairman Terry Gou stated the primary reasons to invest in Wisconsin were the state’s strong manufacturing legacy and outstanding workforce.
For more information about this historic, record-setting project, visit http://wisconnvalley.wi.gov.