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Foxconn lured by $3bn incentive to build $10bn Wisconsin plant

Trump commends Terry Gou's 'faith and confidence' in US economy

LAS VEGAS, U.S. -- U.S. President Donald Trump said on Wednesday that Taiwanese contract electronics manufacturer Hon Hai Precision Industry, also known as Foxconn Technology Group, will build a large liquid crystal display panel plant in the state of Wisconsin for $10 billion.

The investment will create over 3,000 jobs and eventually lead to the employment of 13,000 people, the president said.

Foxconn's decision was encouraged by state economic incentives which could reach $3 billion over 15 years if Foxconn invests $10 billion in the state and ultimately adds 13,000 jobs. The incentives would only be awarded if the Taiwanese company creates the jobs and pays an average salary of nearly $54,000.

"If I didn't get elected, he definitely would not be spending $10 billion," Trump boasted, praising Hon Hai Chairman Terry Gou's "faith and confidence" in the future of the U.S. economy. "Foxconn joins a growing list of industry leaders who understand that America's capabilities are limitless and that America's workers are unmatched, and that America's most prosperous days are just ahead," Trump added.

Gou and Wisconsin Gov. Scott Walker were also present at the White House press conference.

Foxconn will build the plant with its Japanese unit Sharp, which it acquired last year. The plant will produce LCD panels for televisions and computers.

Hon Hai had expressed plans to make large investments in the U.S. in response to calls from the Trump administration. About seven states competed to host the plant. The company chose Wisconsin, where White House Chief of Staff Reince Priebus and Republican House Speaker Paul Ryan are from.

The White House announced that Senior Advisor Jared Kushner and Assistant to the President Reed Cordish, from the White House Office of American Innovation, led the discussions with Foxconn over the past several months.

The Taiwanese giant may also invest in areas related to servers, cloud computing and semiconductor packaging in other states.

A number of Japanese companies supply parts to Hon Hai, a scenario which may force them to also consider investing in the U.S.

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