Foxconn Tells Wisconsin It Never Promised To Build an LCD Factory
An anonymous reader quotes a report from The Verge: In October, Wisconsin denied Foxconn subsidies because it had failed to build the LCD factory specified in its contract with the state. As The Verge reported, it had created a building one-twentieth the size of the promised factory, taken out a permit to use it for storage, and failed to employ anywhere near the number of employees the contract called for. Nevertheless, Foxconn publicly objected "on numerous grounds" to Wisconsin's denial of subsidies. Documents obtained through a records request show Foxconn's rationale: it doesn't think it was specifically promising to build an LCD factory at all. According to a November 23rd letter to the Wisconsin Economic Development Corporation (WEDC), Foxconn does not think the factory specified in the contract, an enormous Generation 10.5 LCD fabrication facility, was actually a "material" part of the contract. ("Material" is a legal term that means relevant or significant.) "As you confirmed on November 10, 2020, the only reason the WEDC made the determination that the Recipients are ineligible for tax credits is because the WEDC believes the Recipients have failed to carry out the 'Project,'" Foxconn wrote. "Thus, WEDC's determination of ineligibility is based off its belief that the Generation 10.5 TFT-LCD Fabrication Facility is a material term of the Agreement." Rather, Foxconn claimed it and WEDC had a "mutual understanding" that it would build something more vaguely defined, "a transformational and sustainable high-tech manufacturing and technology ecosystem in Wisconsin that brings long-term investment and jobs." However, Foxconn did express openness to amending its contract to allow for more flexibility in what it was building in exchange for lower subsidies. [...] WEDC ended the letter by reiterating it was open to amending the contract to reflect Foxconn's current plans. [...] But such an amendment hinges, as always, on Foxconn telling Wisconsin what it is actually building.
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