Hon Hai Precision Industry Co (鴻海精密) founder Terry Gou (郭台銘) yesterday said that the company remains committed to its project in Wisconsin, but appeared to condition its completion on the receipt of state incentives, the Wall Street Journal reported.
Gou said in a statement that Hon Hai, known as Foxconn Technology Group (富士康科技集團) outside of Taiwan, remains committed to its investment, although “market conditions and the COVID-19 pandemic” have altered the timing of its expansion and the specifics of its manufacturing plans.
The company has over the past three years invested US$750 million to transform southeastern Wisconsin into a high-tech hub, the statement said.
However, the Journal said Gou’s comments were the “most explicit yet that the project could be scaled back and might not be completed if state officials don’t come through with promised aid.”
“Foxconn will work as a partner with those who treat the company as a partner,” Gou said in the statement. “Foxconn will remain committed to the completion and expansion of our project and investment in Wisconsin as long as policymakers at the federal, state and local levels remain committed to Foxconn.”
Gou’s statement followed a string of setbacks and negative news reports about the project, which Foxconn negotiated with US President Donald Trump and Wisconsin Republican Party officials in 2017.
The Verge Web site on Monday published a lengthy critique of the company’s failure to deliver on plans to build a massive LCD factory and create 13,000 jobs, saying that it had left “empty promises and empty buildings” where Trump had vowed would be “the eighth wonder of the world.”
Wisconsin officials last week informed the company that it had not hired enough employees last year to qualify for state tax credits.
The Wisconsin Economic Development Corp said the company’s plans for the project had changed so much that it would have to negotiate a new contract to qualify for tax subsidies, the Journal reported.
Hon Hai expressed disappointment with the WEDC for rejecting its request for incentives, but said it was willing to continue negotiations with state authorities.
The investment plan, which Hon Hai initially billed as a US$10 billion commitment, includes a NT$500 million investment to build Wisconn Valley Science Technology Park in Mount Pleasant.
Semiconductor stocks on Friday took a beating after a grim profit warning from Idaho-based Micron Technology Inc sparked fresh worries about the US’ earnings power as the country is potentially heading for a recession. Despite a broader stock market rally, the Philadelphia Stock Exchange Semiconductor Index dropped 3.8 percent after Micron, the largest maker of memory semiconductors in the US, flagged that demand was cooling for chips used in computers and smartphones. The index — which is home to US chip giants Advanced Micro Devices Inc and Nvidia Corp, as well as Micron — is down 38 percent this year. Historically, semiconductor
WHOLLY OWNED SUBSIDIARY: Costco Wholesale said it expected the purchase of the remaining 45 percent stake to add 1 to 1.5 percent to its earnings per share US-based Costco Wholesale Corp on Thursday said that it had purchased the remaining 45 percent stake in Costco President Taiwan Inc (台灣好市多) for US$1.05 billion, making the local company a fully-owned unit. “We estimate that the purchase would add about 1 to 1.5 percent to [our] earnings per share,” Costco said in a statement. Costco President Taiwan was established as a joint venture with Kaohsiung-based President Group (大統集團), which held a 45 percent stake. Since the first Costco store opened in Kaohsiung in 1997, 14 outlets have been set up in Taiwan, company data showed. PROFITABLE Three Costco stores in Taiwan — in Taipei’s Neihu
SOARING PROFITS: Semiconductors and shipping have knocked automaking and construction out of the 10 highest paying industries, stock exchange data showed Mobile phone chip designer MediaTek Inc (聯發科) posted an average of NT$5.15 million (US$173,249) in annual compensation for non-managerial employees last year, marking the highest among all firms listed on the Taiwan Stock Exchange (TWSE), exchange data showed. That is a 66 percent increase from the company’s average compensation of NT$3.08 million in 2020, as its earnings per share (EPS) expanded from NT$26.01 in 2020 to NT$70.56 last year. That is also three times higher than the average compensation of NT$1.7 million in the nation’s semiconductor industry, the data showed. The increases helped MediaTek advance its ranking from third in 2020, replacing
EXPANSION: The airline will offer two flights per week to Milan from Oct. 25, and four flights per week to Munich from Nov. 3 using its Boeing 777-300ER aircraft EVA Airways Corp (長榮航空) yesterday announced that it would begin nonstop flights from Taoyuan to Milan and Munich later this year, marking its first expansion in the European market in 25 years. Starting on Oct. 25, the airline will operate two flights per week between Taoyuan and Milan, implementing a plan that was scheduled for February 2020, but was suspended due to the COVID-19 pandemic and the consequent lockdowns across the world. The airline will also launch four weekly flights to Munich, Germany, on Nov. 3, it said. The schedules for the two flights will cater to in-transit passengers, as they will arrive