The Wisconsin Foxconn scam

#21

Bloomberg with a huge article on this
https://www.bloomberg.com/news/features/2019-02-06/inside-wisconsin-s-disastrous-4-5-billion-deal-with-foxconn

0 Likes

#22

I read that one too. Very informative.

0 Likes

#23

Under the terms Walker negotiated, each job at the Mount Pleasant factory is projected to cost the state at least $219,000 in tax breaks and other incentives.

Walker should be in jail. The state of Wisconsin would have been better off finding 13,000 unemployed citizens and just given them $200k/year. Or better yet given 26,000 citizens $100k/year. But, you know, socialism.

0 Likes

#24

The kicker is, when they signed the deal they knew that WI didn’t even have 13k available employees. And that many of the employees would be commuting from Illinois.

0 Likes

#25

It’s all a bit confusing (long read):

The secrecy and vagueness are frustrating to critics. How do you prove that Foxconn won’t build an enormous LCD factory during an industry glut or create a research campus larger than MIT in rural Wisconsin other than by pointing out that experts — and even, occasionally, Foxconn executives — say it makes no sense?

State House Minority Leader Gordon Hintz recently appointed himself to the board of WEDC, and Foxconn’s continued promises of 13,000 jobs make him palpably furious. Speaking in slow, measured tones in his Madison office as he packed for a trip, he said the state needs to “right-size” the project to something realistic, likely a few hundred research jobs, and that Foxconn needs to be honest about its plans. “For something that had a 25-year payback, building a factory because the president wants you to for reasons that have nothing to do with market viability is insane.”

Hintz believes Foxconn is trying to slow-walk the project until 2020, continuing to use it to win Trump’s goodwill in the trade war and waiting to see who’s elected.

For Foxconn watchers, the Milwaukee headquarters feels like a distillation of the whole ordeal. Foxconn did buy a building — it put signs up, and there are some people there with Foxconn lanyards — but it’s a significantly diminished version of what was promised and strangely secret for a project that began with such public fanfare.

It’s become something of a running joke. When I told people I’d been to the headquarters, they would often grin and ask what happened, before recounting their own experiences of getting turned away at the lobby. Brostoff calls it a “ghost town, an empty storefront.”

0 Likes

#26

Fascinating article. Thanks for posting it.

Just what in hell is Foxconn up to? This article leaves me more confused than when I started reading it.

Anyone know what this “AI 8K+5G ecosystem” means?

Sounds like Wisconsin’s taxpayers are going to be on the hook for all that money the state spent on infrastructure, since it seems like Foxconn won’t actually be using it. But maybe Wisconsin can lure some other corporations into the area to make use of it. But if not, my god what a monumental waste of money.

Edit: Oh man, I see I had not yet read @Woolen_Horde’s linked article yet. I’ve got more reading to do.
Edit #2: Reading the Bloomberg article, things are becoming much more clear to me.

Also, this part caused my jaw to drop:

0 Likes

#27

New gov looking to renegotiate:

Gov. Tony Evers said Wednesday he wants to renegotiate the state’s contract with Foxconn Technology Group and emphasized the Taiwanese company won’t be creating 13,000 jobs in Wisconsin as originally envisioned.

“Clearly the deal that was struck is no longer in play and so we will be working with individuals at Foxconn and of course with (the Wisconsin Economic Development Corp.) to figure out how a new set of parameters should be negotiated,” Evers told reporters in his Capitol office.

0 Likes

#28

Most likely the supporting hardware manufacture for Machine Learning compute, 8K displays (Sony is really pushing this hard as The Next Big Thing) and 5G cellular modems.

0 Likes