Foxconn to invest US$569M in Wisconsin AI infrastructure

TAIPEI (TVBS News) — Foxconn (Hon Hai, 鴻海) will invest an additional US$569 million (around NT$17.8 billion) in Wisconsin over the next four years after the state approved a new operational incentive plan, the company announced on Wednesday (Nov. 26). The Taiwan-based electronics manufacturer will focus on artificial intelligence (AI) infrastructure and create 1,374 new jobs in Wisconsin's Racine County. The Wisconsin Economic Development Corporation (WEDC), the state's economic development agency, approved the four-year incentive plan.

Foxconn's Chief Product Officer and General Manager for the U.S., Jerry Hsiao (蕭才祐), highlighted the growing demand for data infrastructure driving the Wisconsin expansion plans. He noted that Foxconn is working to meet the flexible and large-scale demands of its U.S. clients in the technology sector. Wisconsin employees make up nearly a quarter of Foxconn's U.S. workers, and the company expects to double its state workforce by 2030 through this expansion.

The WEDC-approved plan offers Foxconn up to US$16 million (around NT$501 million) in additional tax incentives if the company meets certain investment performance conditions over the four-year period. The new investment builds on a revised contract from 2021 between Foxconn and Wisconsin state authorities for manufacturing operations. Foxconn stated in a press release that the expansion will focus on operations in Wisconsin's Racine County, a county in southeastern Wisconsin near the Illinois border.

Foxconn anticipates receiving up to US$96 million (around NT$3 billion) in tax credits by Dec. 31, 2029 if it fulfills the necessary investment and job creation conditions outlined in the plan. The company projects this would result in the creation of 2,616 jobs and a cumulative capital expenditure of US$1.2 billion (around NT$37.6 billion) in Wisconsin operations. This marks the second incentive plan between Foxconn and WEDC, following the revised contract from 2021 that restructured the original 2017 agreement.

By the end of this year, Foxconn could earn up to US$80 million (around NT$2.5 billion) in Electronics and Information Technology Manufacturing Zone (EITMZ) tax credits, a special economic zone designation. The company must invest US$672 million (around NT$21 billion) and create at least 1,454 jobs to qualify for these credits. Over the past several years, Foxconn has invested more than US$2 billion (around NT$62.6 billion) in Wisconsin, covering wages, capital expenditures, and taxes.

The cumulative investment has created approximately 1,500 jobs in Wisconsin, which the company says reinforces the state's status as a hub for advanced manufacturing, security, and data infrastructure in the United States. Foxconn's Wisconsin operations focus on AI infrastructure development, data center technology, and advanced manufacturing systems for technology clients. The company's expansion plans align with growing demand for AI and data infrastructure across North America. ◼