Foxconn's "AI Odyssey" in Wisconsin
① Investment Finalized: From "Grand Visions" to "Baking the AI Cake"
Foxconn recently secured approval from the Wisconsin Economic Development Corporation (WEDC) to invest an additional $569 million to expand its AI infrastructure operations in Racine County. This plan is expected to create 1,374 new jobs over the next four years, bringing the company's total employment in the state to 2,616 and its cumulative investment to $1.2 billion.
② Strategic Shift: From iPhone Assembly Lines to AI Server Factory
Once best known for assembling iPhones, Foxconn is now actively transforming into a key player in the AI supply chain. The company currently manufactures AI servers for U.S. tech giants like Amazon and NVIDIA. This expansion aims to meet surging demand for data infrastructure from U.S. customers and strengthen domestic supply chains. Jerry Hsiao, Foxconn's Chief Product Officer, stated, "Wisconsin already accounts for nearly a quarter of our U.S. workforce. This investment will help double the scale of our local operations by 2030."
③ Policy Dynamics: Tax Incentives and a "Performance-Based Agreement"
In exchange, Wisconsin will provide Foxconn with up to $16 million in additional tax incentives. If Foxconn meets all investment and job creation targets by 2029, it could receive a cumulative total of $96 million in state tax credits. Notably, the agreement includes a "performance-based" clause—if targets are not met, the state can reclaim the subsidies.
④ Historical Context: From the "$10 Billion Promise" to a "Pragmatic Pivot"
This investment marks the second amendment to Foxconn's contract with Wisconsin. Looking back to 2017, Foxconn had initially pledged a $10 billion investment and 13,000 jobs, but in 2021, it was forced to significantly scale down the plan to $672 million. By the end of 2024, its actual investment reached $717 million, creating 1,242 jobs, for which it has received $62.9 million in tax credits.
⑤ The Reporter's Take
Foxconn's Wisconsin story reads like a business drama: Season 1 was "The Grand Blueprint," Season 2 was "The Reality Check," and now Season 3, "The AI Counterattack," is underway. As AI server demand meets performance-based contract clauses, whether this "pragmatic pivot" can truly drive the supply chain remains to be seen. But for local residents, 1,374 new jobs certainly sound more grounded than that legendary spherical building.