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Foxconn Tells Wisconsin It Never Promised To Build an LCD Factory (theverge.com) 179

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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Foxconn Tells Wisconsin It Never Promised To Build an LCD Factory

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  • by rsilvergun ( 571051 ) on Saturday December 19, 2020 @09:43AM (#60848150)
    the entire deal was set up by a corrupt Republican governor and legislature. It would have been full of get out of jail free cards and slush. It would be nice if the voters would learn this time, but I suspect they'll be building a Simpson's style escalator to nowhere in 20 years while some other politician lines their pockets. People never learn.
    • by I'mjusthere ( 6916492 ) on Saturday December 19, 2020 @10:00AM (#60848178)

      the entire deal was set up by a corrupt Republican governor and legislature. It would have been full of get out of jail free cards and slush. It would be nice if the voters would learn this time, but I suspect they'll be building a Simpson's style escalator to nowhere in 20 years while some other politician lines their pockets. People never learn.

      Yep. Socialism for the rich - capitalism for the rest of us.

      They can get free sports stadiums, off the hook for taxes and their promises NEVER come true. A billionaire baseball team owner cried poverty and got my county to pay for his stadium. Well, the economic benefits promised never happened, the county has a budget shortfall because of it, and guess what? We poor slobs are gonna have services cut because of welfare for billionaires. I have to dodge potholes to and from work because there is no money for repairs.

      Our system is rigged but yet people keep voting for the same assholes.

      • by rsilvergun ( 571051 ) on Saturday December 19, 2020 @10:20AM (#60848226)
        because every single in has been a huge money sink that cost taxpayers a fortune. Hundreds and hundreds of them and we still pretend that it's for "economic benefits" instead of "corruption and oh yeah people like sports".

        As a nerd I'm so tired of subsidizing sports. Especially when so many of those people cheering are anti-science.
        • by hey! ( 33014 ) on Saturday December 19, 2020 @11:14AM (#60848330) Homepage Journal

          I think that the public should get an ownership stake if it's going to invest in a team.

          I can imagine a future in which a city's team is entirely owned by a regional public commission elected by the taxpayers. It's not so far-fetched if you take the argument that sports teams are an important public service seriously. Any of those sports nuts who call into sports radio to rant could run for commissioner. And there'd be no danger of someone buying your franchise and moving it to a different city after you'd pumped hundreds of millions of dollars.

          At the very least a team should not be movable until it has generated the revenue promised to the region in the team's economic projections.

          • by tflf ( 4410717 )

            I think that the public should get an ownership stake if it's going to invest in a team.

            I can imagine a future in which a city's team is entirely owned by a regional public commission elected by the taxpayers. It's not so far-fetched if you take the argument that sports teams are an important public service seriously. Any of those sports nuts who call into sports radio to rant could run for commissioner. And there'd be no danger of someone buying your franchise and moving it to a different city after you'd pumped hundreds of millions of dollars.

            At the very least a team should not be movable until it has generated the revenue promised to the region in the team's economic projections.

            Thank you - great to see a potential model for subsizing sports that tries to level the playing field. If taxpayers have to assume part, most, or all of the risk, they should have ownership that reflects the value of their collective investment.

            One potential alternative scenario: turn subsidies into guaranteed (with voting shares in the parent company) low (or even no interest) loans. The standard share dividends to still apply, so taxpayers would also see some tangible return on investment.

        • by BarbaraHudson ( 3785311 ) <barbara.jane.hud ... com minus distro> on Saturday December 19, 2020 @11:15AM (#60848334) Journal
          People are starting to smarten up. Every few years the same faces, older and more tired-looking, try to get professional baseball back to Montreal. Of course they want a new stadium for fee, and subsidies. Any government that goes with this is dead meat - citizens groups will sue their asses off. Those days are gone.

          A stadium? Forget it. Build a hospital that creates good-paying high-quality jobs, not part-time seasonal jobs selling hotdogs in a stadium.

          • but they way we get it done here is that a politician at the end of their career signs off on it. Then the media, which is complicit it all of it due to be owned by the same group of 20 or so billionaires, directs all the hate to that one politician so everybody ignores that his party (and a generous number of sell outs from the opposition party) signed off on it too.

            It's also sometimes done with somebody in a safe district and/or with a lot of political capital. In politics they're called "tanks". Thin
        • by tflf ( 4410717 )

          because every single in has been a huge money sink that cost taxpayers a fortune. Hundreds and hundreds of them and we still pretend that it's for "economic benefits" instead of "corruption and oh yeah people like sports".

          As a nerd I'm so tired of subsidizing sports. Especially when so many of those people cheering are anti-science.

          Every study" proving the "benefits" of subsidizing the building of any professional sports facility (or event) was paid for, directly or indirectly, by the sport. Independant studies after the fact continue to prove public subsidization seldom produces any of the economic benefits touted. Where benefits are found, they usually prove to be 1/10, or less, of those forecasted.

          Giving tax generated funds to large corporations is seldom a winning proposition for the taxpayers, or the local government. It's diff

    • by PsychoSlashDot ( 207849 ) on Saturday December 19, 2020 @10:53AM (#60848292)

      the entire deal was set up by a corrupt Republican governor and legislature. It would have been full of get out of jail free cards and slush. It would be nice if the voters would learn this time, but I suspect they'll be building a Simpson's style escalator to nowhere in 20 years while some other politician lines their pockets. People never learn.

      I don't know that it's correct even from a legal standpoint.

      They say they were to build a "transformational and sustainable high-tech manufacturing and technology ecosystem in Wisconsin that brings long-term investment and jobs".

      Their warehouse is not:
      Transformational
      Sustainable
      High-tech
      Manufacturing
      A technology ecosystem
      Bringing long-term investment
      Bringing jobs

      At least it's in Wisconsin, I guess.

  • these types of factories and projects in the US anymore. There's just too much politics and special interests pulling in every direction that make an enterprise like this functionally impossible.
    • Re:You can't build (Score:5, Insightful)

      by kot-begemot-uk ( 6104030 ) on Saturday December 19, 2020 @10:02AM (#60848188) Homepage

      these types of factories and projects in the US anymore. There's just too much politics and special interests pulling in every direction that make an enterprise like this functionally impossible.

      This is not different from any country and it is not different from USA of old.

      What is different in USA in the last few years is that it is now an U(sa)kraine - change of the guard every 4 years or less and the new lot coming with Fire and Brimstone to burn anything and everything set up by the predecessor. Even an occasional Maidan here and there. Lovely Eastern European picture.

      You do not do long term investment in such climate. So no surprise in what Foxconn did.

      There are pockets of stability like f.e. California remains resolutely greenie even when run by Judgement Day Governators and Texas which is always a bit to the right of Atilla the Hun. They are also big enough to compensate and oppose any change of the guard orders coming from Wash DC. The rest of USA however... Forget it. There will be no long term investment anywhere for the foreseeable future. Nobody invests in a country where there was a Maidan in the last few years. It has to become properly politically stable when long term projects transcend administrations and are not ripped out every 4 years.

      • Ripped out? We can't even get to the stage of building shit first. There's nothing to rip out but their bank accounts and tax subsidies.

      • What is different in USA in the last few years is that it is now an U(sa)kraine - change of the guard every 4 years or less and the new lot coming with Fire and Brimstone to burn anything and everything set up by the predecessor. Even an occasional Maidan here and there. Lovely Eastern European picture.

        Posting this for those who are as confused at the term 'Maidan' [britannica.com] as I was.

      • and Texas which is always a bit to the right of Atilla the Hun.

        Don't worry, California is sending people to turn the state blue.

        Texas used to be a purple state.

    • Re: You can't build (Score:5, Informative)

      by mcgett ( 891257 ) on Saturday December 19, 2020 @10:19AM (#60848220)
      Have you even read any of the many articles on the project? The state and local governments have spent hundreds of millions buying land through eminent domain, removing existing houses and have built multi lane highways, water and sewer lines to the site that sits empty except for the small building that is being used for "storage". Wisconsin wants to have this factory built else Foxconn just wants to get more in tax credits than they actually spend on building a business and hiring workers.
    • by hey! ( 33014 )

      So you don't think being a high wage country has *anything* to do with the fact that the US is unattractive for a high volume, low skill assembly operation?

      Here's a fun fact -- on a dollar basis, US manufacturing has actually *grown* in the past 30 years. It's just that it's no longer a source of high paid, low skill jobs.

      • Maybe because the dollar is worth less than 30 years ago?

        • by hey! ( 33014 )

          That's true of most currencies; central banks usually manage currencies so there is slight inflation. It's true that the dollar is weaker against the yuan than it was 30 years ago, but that shouldn't surprise anyone. China is still a lower wage country than the US; the median Chinese salary is about 1/4 the US median salary.

    • by gweihir ( 88907 )

      But you can still make a nice profit pretending to do such a project!

    • by sjames ( 1099 )

      That falls a bit flat given the way Wisconsin bent over backwards and grabbed it's ankles to make it possible.

  • >was actually a "material" part of the contract. ("Material" is a legal term that means relevant or significant.)

    Are Verge readers idiots or did the submitter include this bit of "help"? My question is material to understanding where the superiority complex comes from.

    • by Ksevio ( 865461 )

      I'm not a lawyer and don't work with contracts so while I'm familiar with "material" in that context, I didn't know the specific legal definition. But I guess not everyone is as smart as the great "awwshit"

      • >while I'm familiar with "material" in that context

        Right, exactly, and that is enough to understand what is happening in the story. No 'as smart as the great "awwshit"' required, whatever that means.

  • by gavron ( 1300111 ) on Saturday December 19, 2020 @05:03PM (#60849214)

    Foxconn is apparently correctly named.

    They conned Wisconsin.
    They conned the governor.
    They conned the orange clown.

    I'm sorry for the taxpayers of Wisconsin who now will foot the bill. ...just as I'm sorry for the rest of us footing the bill for the orange clown's con.

    E

  • People who trust big business are their own best punishment. People who trust their elected leadership are their own best punishment. They DESERVE to be hurt, badly, for being so cretinous, gullible and craven.

    Many techies knew this was a scam but who listens to us?

    Remember Foxconn then contemplate why the US wastes billions defending our Taiwanese parasite for zero benefit to the American people.

  • what a crock.

  • ... but in the US, if you rock into court with a contract that contains a vague aspirational statement, alongside a specific and concrete description of a factory, then claim that the former is the actual consideration agreed upon, you better hope that your judge has a gavel made of Nerf and a big stylized 'S' on the back of his robe. Seriously, they could otherwise just toss up a small lemonade-stand-style cardboard box where a lone homeless man connects USB cables to chargers that he then tosses into a li

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