Trump announces $10 billion Foxconn plant in Wisconsin

Factory to initially create 3,000 jobs

July 27, 2017 at 5:05 a.m. | Updated July 27, 2017 at 12:24 p.m.

FILE - In this Feb. 4, 2016, file photo, employees enter and exit the headquarters of Taiwan's Hon Hai Precision Industry Co., also known as Foxconn, in New Taipei City, Taiwan. Wisconsin Gov. Scott Walker says President Donald Trump plans to make a "major jobs announcement for Wisconsin" as anticipation builds it will be about electronics giant Foxconn locating in the state. Taiwan-based Foxconn is best known as the assembler of the iPhone. Wisconsin is among seven states, mostly in the Midwest, that the company has named as possible locations to build the its first liquid-crystal display factory that could mean tens of thousands of jobs. (AP Photo/Wally Santana, File)
FILE - In this Feb. 4, 2016, file photo, employees enter and exit the headquarters of Taiwan's Hon Hai Precision Industry Co., also known as Foxconn, in New Taipei City, Taiwan. Wisconsin Gov. Scott Walker says President Donald Trump plans to make a "major jobs announcement for Wisconsin" as anticipation builds it will be about electronics giant Foxconn locating in the state. Taiwan-based Foxconn is best known as the assembler of the iPhone. Wisconsin is among seven states, mostly in the Midwest, that the company has named as possible locations to build the its first liquid-crystal display factory that could mean tens of thousands of jobs. (AP Photo/Wally Santana, File)

WASHINGTON (AP) - President Donald Trump said Wednesday that electronics giant Foxconn will build a $10 billion factory in Wisconsin that's expected to initially create 3,000 jobs.

The announcement comes at a critical juncture for a Trump administration that pledged to generate manufacturing jobs but has struggled to deliver results as quickly as the president promised. Trump's plans for health care and tax cuts face a murky future in Congress, while his administration is bogged down by an investigation into Russia's possible ties with his presidential campaign.

In a White House speech, Trump said the financial commitment by Foxconn CEO Terry Guo was a direct result of his electoral win.

"If I didn't get elected, he definitely would not be spending $10 billion," Trump said. "We are going to have some very, very magnificent decades."

However, the decision to build the plant in Wisconsin also stemmed from $3 billion in state economic incentives over 15 years if Foxconn invests $10 billion in the state and ultimately adds 13,000 jobs. The incentives would only be awarded if Foxconn creates the jobs and pays an average salary of nearly $54,000.

The Wisconsin factory will produce liquid-crystal display panels, or LCDs, that are used in televisions and computer screens. It will be located in the congressional district of House Speaker Paul Ryan. It would mark a substantial gain for a state that currently has 472,000 manufacturing jobs and is still recovering from factory layoffs - including the closure of a General Motors plant in Ryan's hometown - that hit after the 2008 financial crisis.

Taiwan-based Foxconn is perhaps best known for assembling Apple iPhones in China.

Inside the White House, discussions with Foxconn about opening a U.S. plant were led over several months by Jared Kushner, a senior adviser and the president's son-in-law, and Reed Cordish, an assistant to the president on technology initiatives. The president had met personally with Gou, who on Wednesday complimented Trump's leadership at the event by saying, "Mr. President, the eagle flies."

Seven states had competed for the Foxconn plant. By awarding the plant to Wisconsin, Foxconn would appear to be giving a victory to both Trump and the state's Republican governor, Scott Walker, who is up for re-election next year.

Other states that vied for the plant are Michigan, Illinois, Indiana, Ohio, Pennsylvania and Texas.