Foxconn to invest $10bn in US factory, Trump takes credit
Taiwanese electronics major Foxconn has announced plans to invest $10 billion in a new factory to be situated in Wisconsin, USA. Terry Gou, the company's chief executive, announced the investment in the White House. US President Donald Trump said the "incredible investment" wouldn't have taken place if he hadn't been elected. During his election campaign, Trump had vowed to revive America's manufacturing sector.
What is Foxconn?
Foxconn is one of the world's largest electronic manufacturers that employs around 1 million people globally with revenues worth $100 billion in 2016. The firm works with companies such as Apple, Tesla and BMW.
Trump feels Foxconn has expressed confidence in American economy
At a press conference along with Trump at the White House, Foxconn's Gou said his goal is to revamp America's manufacturing ecosystem. "To make such an incredible investment, Chairman Gou put his faith and confidence in the future of the American economy," Trump said. "In other words, if I didn't get elected, he definitely would not be spending $10 billion," Trump said taking credit.
Wisconsin to give Foxconn a $3bn subsidies package
Earlier this year, Foxconn had said it was looking at possible locations to build a factory, leading to a fierce competition between American states to win the facility. To secure Foxconn's commitment, Governor Scott Walker said his state is preparing a $3 billion subsidies package. Walker said the factory would eventually employ 13,000 people over a 20 million square feet facility.
