Foxconn – a Taiwanese electronics giant – scales back its investment in a $10 billion LCD screen factory in Wisconsin.

The initial investment plan was based on the production of large LCD pannels, largely for use in TVs. However, Foxconn has recently announced that it would instead produce small to medium pannels at the Wisconsin facility.

The change comes as a result of the increased supply of large LCD pannels from China, as well as a lack of capacity among suppliers in Wisconsin (given that the large glass pannels are difficult to transport). Therefore, small and medium screens are a more feasable and cheaper option. Yet, it is not yet clear whether this change will alter the planned 13,000 jobs to be created or the $10 billion proposed investment.

Foxconn’s investment plan is strongly supported the President Trump, as part of his “Made in America” campaign. However, the deal has come under fire for the $3 billion in corporate incentives offered to Foxconn by the federal and state government.

In addition, Foxconn has a poor track record with its investments in the US and has also broken promises in India, Vietnam, Brazil and Indonesia, throwing into question the deal’s predicted benefits. The downsizing of the investemnt plan may also undermine the predicted indirect local and national economic benefits of the investment.

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