Tag Archives: Foxconn

Foxconn Leads Way Diversifying Out of China

FYI

Apple supplier Foxconn is ahead of its competitors in diversifying its supply network in order to avoid getting caught up in the U.S.-China dispute, one analyst told CNBC.

[…]

The company reported a 34% on-year increase in net profit of about 22.9 billion New Taiwan dollars ($778.54 million), driven by its server and computing businesses, according to Reuters. It exceeded analysts’ prediction of 17.95 billion New Taiwan dollars, the report said.

Foxconn said revenue from key consumer products, mainly smartphones, declined more than 15% from a year ago, as demand for global electronics was hurt by the coronavirus pandemic, the news wire said.

[…]

Foxconn manufactures and assembles about 30% of its products outside China. Chairman Liu Young-way told an investor conference that ratio could increase in the future, Reuters reported.

“I think they are doing the right thing because previously, Hon Hai or Foxconn’s business model was always to serve customers locally,” Yang said, pointing to the company’s local operations in Texas, that used to previously serve computer-maker Compaq, and had a presence in Indiana and California. Foxconn’s first U.S. manufacturing facility was in Wisconsin and has attracted some controversies.

[…]

Being closer to customers is not the only consideration.

Yang explained that while China has relatively lower labor costs, the ongoing trade dispute between Beijing and Washington factors into Foxconn’s efforts to diversify its supply chain. iPhones assembled in China and shipped to the United States would be slapped with tariffs.

Foxconn Pays the Tax Man

Good to see.

Mount Pleasant, Wis. – The Village of Mount Pleasant has received 2019 property tax payment from Foxconn Technology Group in the amount of $1,071,899.55, making Foxconn the largest taxpayer in the Village.

In addition, Foxconn also paid its first Special Assessment payment in the amount of $7,325,050. Foxconn is responsible to pay Special Assessments to cover the cost of all land acquisitions in the project area, in addition to the $60 million it paid the Village in 2017. To-date, 850 acres of land in Area I have been conveyed to Foxconn, and a total of $110 million in Special Assessments are in place on the approximately 2,600 acres of land in Areas I, II, and III.

“Ahead of schedule, Foxconn Technology Group has paid its 2019 property tax and special assessment payments to the Village of Mount Pleasant. These payments, totaling more than $8.4 million, establish the company as the largest taxpayer in the Village,” said David DeGroot, Mount Pleasant Village President. “We continue to see tremendous progress at Foxconn’s campus in the Village. These advance payments are one more example of Foxconn’s commitment to our area and to its obligations under the local development agreement.”

Governor Seeks to Welch on Foxconn Deal

He seems determined to kill this economic engine.

MADISON, Wis. (AP) — Gov. Tony Evers’ top aide warned Foxconn Technology Group last month that a scaled-down factory in Wisconsin won’t qualify for tax credits unless the Taiwanese electronics giant renegotiates with the state, letters Evers’ administration released Friday show.

The letters underscore a deepening schism between Evers and the world’s largest electronics provider. Foxconn counts Apple, Google and Amazon among its customers.

Foxconn originally proposed building a massive flat-screen plant in Mount Pleasant that would eventually employ 13,000 people. Enamored with the thought of a monumental economic boost going into the 2018 elections, then-Gov. Scott Walker and Republican legislators approved an unprecedented $3 billion state incentives package in 2017 for the factory. Democrats complained at the time that Walker and the GOP were giving away too much for a project that might never materialize.

Foxconn to Partner with Johnson Controls for Smart Buildings

Cool!

MILWAUKEE — Johnson Controls will collaborate with Foxconn to transform building data analytics through artificial intelligence and machine learning to advance smart building and smart-city technologies and achieve comfort, security and sustainability goals, according to a Wednesday announcement.

As part of the global technology strategic partnership, Johnsons Controls will become the preferred provider of building management products and solutions at Foxconn’s planned manufacturing facilities in Mt. Pleasant and potentially extend to Foxconn’s global footprint. The buildings will incorporate smart, safe, and sustainable technologies provided by Johnson Controls and enhanced by Fii’s industrial AI and Smart manufacturing technologies.

“We look forward to this collaboration with JohnsonControls, a global leader in building technology, to apply their expertise to leverage our expertise in Artificial Intelligence to further advance into

the next generation of smart technology solutions,” said Brand Cheng, Fii CEO.

The smart buildings and cities of the future will rely on buildings with a highly predictive network of integrated data analytics and artificial intelligence applications, combining building data with external data such as utility pricing, energy storage use, social media tracking and weather data to help consumers manage their home environment, home security, lighting and a host of other in-home functions.

Foxconn Continues to Grow in Wisconsin

All of the lefties sure have gone quiet on Foxconn.

WAUKESHA — Foxconn has hired nine more subcontractors for ongoing work at the Wisconn Valley Science and Technology Park, many of which are from southeastern Wisconsin.

The combined total contract value for this bid package exceeds $15 million. The total value of all subcontractor awards to date is more than $175 million.

Evers Threatens to Renege on Foxconn Deal

Don’t screw up our state, governor.

Gov. Tony Evers said Wednesday that electronics maker Foxconn Technology Group is unlikely to employ 13,000 workers in Wisconsin as it has said it could and that the state’s deal with the company may need to be “downsized” as a result.

The structure of the deal already accounts for Foxconn missing their jobs obligation and protects the taxpayers. If Evers reopens the contract, he is dealing from a position of weakness. Foxconn doesn’t have to agree to anything else and could just walk away. While I’m sure that Evers and his lefty cohorts would be pleased with their self-fulfilling prophecy, it would be terrible for Wisconsin for a generation or more. It would mark Wisconsin as a state that won’t stick to their contracts for businesses around the world.

Gou Plans to Take a Step Back

Perhaps this explains why we have been getting a few mixed messages from Foxconn lately.

TAIPEI (Reuters) – The chairman of Taiwan’s Foxconn, an assembler of Apple Inc’s iPhones, said on Monday he plans to step down in the coming months to pave the way for younger talent to move up the company’s ranks.

[…]

Terry Gou, speaking on the sidelines of an event in Taipei, said that while he planned to resign as Foxconn chairman, he hoped to remain involved in strategic decisions regarding the company’s business.

When asked by Reuters if he would quit as chairman, Gou said he was moving in that direction, although any decision needed to be discussed with the company’s board.

“I don’t know where you got the information from. But I have to say, basically, I’m working toward that direction – to walk back to the second line, or retire,” Gou said.

“I will be involved in the major direction of the company, but not involved in daily operations.

“I’m already 69 years old. I can pass down my 45 years of experience. That’s the goal I set up – to let young people learn sooner and take over sooner and to replace my position sooner.”

Gou said his plans would be discussed with the board of Foxconn, formally known as Hon Hai Precision Industry Co Ltd, in the coming months and shareholders would be told at the AGM in June.

Foxconn Buys Building in Madison

Excellent!

Foxconn Technology Group confirmed plans to buy a building on the Capitol Square in Madison currently owned by BMO Harris Bank to establish another innovation center in Wisconsin.

The company announced the purchase of the property at 1 W. Main St. on Friday morning. The building will be renamed Foxconn Place Madison and Foxconn says it will connect the University of Wisconsin-Madison and regional suppliers with the company’s Wisconn Valley Science and Technology Park in Mount Pleasant.

BizTimes Media first reported on Foxconn’s plans to buy the property in March. 

Foxconn has previously announced a number of other innovation centers around the state, including in Green Bay, Eau Claire, Milwaukee and downtown Racine. An article from The Verge this week suggested many of the projects have not made significant progress.

Foxconn Plant To Be Operational By 2020

Great!

Electronics maker Foxconn Technology Group said Monday it will begin construction this summer on a display-screen manufacturing hub near Racine, with plans for production to start by the end of 2020.

A company statement said the construction marks the next phase of Foxconn’s overall blueprint for its campus in Mount Pleasant.

It underscores the company’s manufacturing plans at the site, weeks after reports and statements by Foxconn officials suggested the company was scaling back or changing its plans to build display screens in Wisconsin.

If the plant is operational by fall 2020, it also could give political fodder to one of its top cheerleaders, President Donald Trump, who has touted Foxconn’s plans as heralding a renaissance in U.S. manufacturing.
This will be hard for Wisconsin’s Democrats. Will they celebrate this great economic boon to Wisconsin or will they continue to carp and moan because Trump celebrates it? In other words, will Democrats prioritize partisan politics over celebrating Wisconsin’s success? I think we know the answer to that.

Foxconn Complies With Wisconsin’s Environmental Regulations

There you go.

A top aide to Gov. Tony Evers said Thursday he believes all of the state permits issued to tech giant Foxconn have been reviewed by the state Department of Natural Resources and deemed appropriate.

But the damage to the relationship with Foxconn is done. Despite having gone through the process and received the appropriate permits, they were forced deal with regulators again and wait to see if they would pass the new administration’s test. Inconsistent treatment, uncertainty, and the arbitrary application of regulations kills businesses.

Evers Sics DNR on Foxconn

Evers is having his newly weaponized DNR rehash old permits. Wisconsin is not open for business.

Gov. Tony Evers said Tuesday that state environmental officials will review air-quality permits issued last year to electronics maker Foxconn for its planned $10 billion campus near Racine.

Evers told reporters he discussed the topic with Foxconn officials but doesn’t believe the company is concerned.

“Clearly that’s one area the people of Wisconsin were concerned about, is air quality,” Evers said.

Evers’ comments clarify what he told reporters Friday, following a series of reports suggesting the company’s plans for Wisconsin were in flux.

During the campaign, Evers said scientists told him a flawed process was used to issue the Foxconn air-quality permits. The company’s plan to build a manufacturing facility in Mount Pleasant would make it one of the largest sources in southeast Wisconsin for pollutants that create smog. The region already suffers from summer smog problems, the Milwaukee Journal Sentinel has reported.

Evers Badgers Foxconn about Environmental Regulations

Gee, is there any wonder why Foxconn might be getting cold feet when this is the first thing they hear from the new governor?

Gov. Tony Evers says he’s confident Foxconn’s leaders understand his concerns around the manufacturer’s environmental impact in Wisconsin.

Addressing RENEW Wisconsin’s Renewable Energy Summit yesterday in Madison, the guv said he spoke with Foxconn’s Louis Woo Wednesday night. The special assistant to Foxconn CEO Terry Gou told Evers about the company’s plans to keep the waters of Lake Michigan clean.

“I know we’re always concerned about the environmental issues as it related to Foxconn,” Evers said. “I feel confident going forward that they get it, and that we’ll have a good partnership there.”

Still, he said, “we have some things to check up on though.”

Foxconn’s “Smart Cities, Smart Futures” Competition Draws 325 Entrants

Awesome.

The first round of Foxconn Technology Group’s Smart Cities, Smart Futures competition prompted 325 entries from students, faculty and staff at higher education institutions in Wisconsin.

Foxconn announced earlier this year it would provide up to $1 million in awards over three years through the competition, soliciting entries from the University of Wisconsin System, Wisconsin technical colleges and private colleges and universities.

Entries for the first round were submitted in October and up to 100 winners will be selected to receive a $500 cash prize and an invitation to the competition’s second round. Around $200,000 in prizes will be awarded over three rounds of competition.

Submissions in the first round included ideas to use technology to address challenges in education, health care, transportation and housing, a company press release said.

Foxconn Denies Recruiting Chinese Workers

Frankly, I hope that they are.

Technology supplier Foxconn denied reports Tuesday that it is considering staffing its planned Wisconsin facility with Chinese workers due to the tight labor market in the state.

“We can categorically state that the assertion that we are recruiting Chinese personnel to staff our Wisconsin project is untrue,” Foxconn, which is based in Taiwan, told The Wall Street Journal in a statement.

Sources familiar with the matter had told the Journal that Foxconn may bring in personnel from China to staff the facility, given the tight American labor market.

Particularly, the source said, Foxconn Chairman Terry Ghou is searching out company engineers that would be willing to move to Wisconsin.

Ghou is reportedly struggling to find employees who would relocate so far away and is frustrated by it.

We have a labor shortage in Wisconsin. The best way to fix that is to recruit people from other states and countries to move to Wisconsin to fill those jobs, thus creating more Wisconsinites who live, work, and play in our state. It is a good thing if people want to move here – not a bad thing.

Evil Foxconn Gives $100 Million to UW

Boy, I sure hope that Evers can kill the Foxconn deal. /sarcasm

Foxconn Technology Group will invest $100 million to UW-Madison that will go toward establishing an interdisciplinary research facility for the College of Engineering, the largest research partnership in the university’s history.

The Foxconn Institute for Research in Science and Technology, or FIRST, will collaborate closely with the company’s Wisconn Valley Science and Technology Park near Racine.

Foxconn CEO Terry Gou joined UW-Madison Chancellor Rebecca Blank for the Monday announcement, signing several agreements formalizing their relationship.

The gift is one of the largest in the school’s history, Blank said, and will help develop Wisconsin’s research and engineering talent.

Foxconn Will Only Benefit Southeast Wisconsin

Oh, wait

Foxconn Technology Group is buying a historic downtown Eau Claire building and space in the Haymarket Landing building as part of an expansion that will create 150 jobs.

The company announced it is expanding its Wisconn Valley Innovation Network to west-central Wisconsin as part of its initiative to spur innovation, attract talent and connect with supply chain partners, according to a statement. Foxconn plans to close on these properties later this year and open new operations in early 2019.

The new centers, to be named Foxconn Place Chippewa Valley, will create at least 150 high-tech jobs in Eau Claire. Employees will work with companies that will become part of Foxconn’s extensive supply chain and contribute to the development of the AI 8K+5G ecosystem that Foxconn is building in Wisconsin.

“We are excited to expand our Wisconn Valley footprint to the Chippewa Valley and west-central Wisconsin. Our goal in establishing Foxconn Place here is to help inspire innovative ideas, attract talent and catalyze cutting-edge solutions in this part of the state,” said Alan Yeung, Foxconn’s Director of U.S. Strategic Initiatives and President of FEWI Development Corporation. “Foxconn Place Chippewa Valley will play a key role in building a vibrant AI 8K+5G ecosystem in the U.S., with Wisconsin at the center of this vision.”

I will remind the gentle reader that every single Democrat running for governor has spoken against the Foxconn deal. I actually think that if one of them would break with the pack and champion Foxconn, they would stand a better chance of winning the general election, but it would kill them in the primary.

Foxconn Expands in Green Bay

Great.

GREEN BAY – Foxconn, the Taiwanese tech company building a sprawling manufacturing plant in southeastern Wisconsin, will become the new owner of The Watermark building in downtown Green Bay.

Foxconn Technology Group CEO Terry Gou was joined by Gov. Scott Walker on CityDeck Friday to announce the company’s pending purchase of the building, the former Younkers department store at 301 N. Washington St.

Foxconn plans to open an innovation center in the building by the end of the year. It will be part of a network supporting its Racine County manufacturing plant. More than 200 people are expected to work at the Green Bay location.

Gou said the Green Bay center will focus on developing applications for the AI 8K+5G display technology it is developing, as well as applications for the education, medical, health care, entertainment, sports and security industries.

Foxconn Awards $14 Million in Contracts for First Building

Great!

Foxconn Technology Group and M+W|Gilbane awarded $14 million in contracts to eight prime subcontractors for the construction of the first building at Foxconn’s planned LCD manufacturing campus in Mount Pleasant.

Four of the contracts for a 120,000-square-foot multipurpose building went to companies based in metro Milwaukee. Those firms included precast work by Waukesha-based Spancrete Inc., concrete by Butler-based Superior Masonry Builders Inc., electrical work by New Berlin-based Pieper Electric Inc. and mechanical, plumbing and fire protection work by Pewaukee-based Total Mechanical Inc.

“We are pleased that a team of companies with strong track records in Wisconsin has been assembled to support the development and construction of our first building in the Wisconn Valley Science and Technology Park,” said Alan Yeung, Foxconn director of U.S. strategic initiatives and president of FEWI Development Corp.

All eight firms have a Wisconsin presence. Schofield-Tased Merrill Steel is providing structural steel and miscellaneous metals work and the Milwaukee offices of Pennsylvania-based Bright View Landscape Development Inc. and Connecticut-based Otis Elevator Co. will handle landscape and elevator work respectively.

Foxconn Considering Venture Capital Fund for Wisconsin Startups

This would be most welcome. Wisconsin lags the nation in attracting venture capital and an infusion of funds would be a boon for startups.

Several Wisconsin and Milwaukee-area entrepreneurship and venture capital sources have told BizTimes Milwaukee that Foxconn Technology Group is working on forming a large venture capital fund – some have pegged it at $100 million – to invest in Wisconsin startups.

The Taiwanese LCD screen manufacturer, which is building a massive campus in Mount Pleasant, already invests in startups via its HCM Capitalprivate equity arm, which currently has nine portfolio companies in China, California, Massachusetts and New York. Last month, it invested in a $7 million Series A round for Cambridge, Massachusetts-based Cambridge Blockchain.

Foxconn could potentially house portfolio companies from the Wisconsin venture capital fund in its new North American headquarters in downtown Milwaukee, where it has previously said it will provide office space for startups. The headquarters will include the Wisconn Valley Innovation Center, a hub for the 8K+5G “ecosystem” the company is trying to foster in Wisconsin and the U.S.

In response to previous questions about its plans to invest in Wisconsin startups, Foxconn referred to the Innovation Center: “The facility will house incubators, accelerator labs, venture capital activities and startup initiatives, and support Foxconn’s goal of cultivating a new class of vertical solution providers for advanced manufacturing processes and technologies, as well as for industries such as education, medical and health care, entertainment and sports, security, and smart community.”

Foxconn to Announce New HQ in Downtown MKE

Excellent!

MILWAUKEE — Foxconn officials on Friday, June 15 will announce plans for a new corporate headquarters in downtown Milwaukee.

According to a news release, a Friday morning news conference will include Dr. Louis Woo, special assistant to Foxconn Founder and CEO Terry Gou; Alan Yeung, Foxconn director of strategic U.S. initiatives; Milwaukee Mayor Tom Barrett; Milwaukee Common Council President Ashanti Hamilton; and Milwaukee County Executive Chris Abele.

It will take place near Van Buren and Wisconsin Avenue.

The news release says the announcement information about “hundreds of new jobs in downtown Milwaukee.”