The "Eighth Wonder of the World" became a laughing stock
In 2018, in front of all Americans, Trump proudly announced a "eighth wonder of the world" level of bombshell news - Taiwan's Foxconn Group will invest $10 billion in Wisconsin to build a super-large-scale LCD panel factory and create 13,000 jobs.
At that time, Guo Taiming could be said to be proud, and he confidently made a grand promise to the world. And Trump is tirelessly building momentum for this "miracle project", nagging almost every once in a while.
No one expected that five years later, this high-profile factory had not started construction except for a hastily excavated pit, and it had become an abandoned "10 billion pit". Terry Gou's bold words and Trump's return have all become a huge laughing stock.
Microsoft's $3.2 billion takeover of unfinished projects?
Just when the outside world was in an uproar about Foxconn's 10 billion investment, a hot news once again ignited the heat of public opinion - the original "10 billion pit" is about to be replaced and taken over, and the takeover man turned out to be the technology giant Microsoft!
According to reports, Microsoft plans to invest $3.2 billion in Wisconsin to build a new large-scale data center on the plot where Foxconn was originally scheduled to build an LCD panel factory. In addition to the data center, Microsoft is also planning to establish an artificial intelligence innovation lab here, as well as a data center academy to train relevant talents for the local area.
The U.S. has high hopes that the investment will create more than 2,000 local jobs. Biden could not hide his sarcasm for Trump, pointing out that because of Foxconn's failure to contract, the 13,000 jobs promised in Weizhou ended without a problem.
For a while, discussions about whether Microsoft can turn the situation around and revitalize this "ownerless land" have been flooding. Public opinion also began to speculate about why Foxconn made a desperate bet back then, but in the end it fell short? What role does the Trump administration play in this?
Some people believe that the Sino-US trade war has hindered the progress of the project, while others point the finger at Gou's bluff and image engineering. But it is undeniable that Foxconn's big investment has now come to naught, and this is a heavy lesson.
The investment motive is suspicious, and Fuxiang's gamble is exposed
Back at the beginning of the project, Terry Gou was very interested in investing in the United States, and even vowed to move all production capacity to the United States.
But those familiar with the manufacturing industry know that Foxconn's investment motives are actually very questionable.
First, the upstream and downstream supporting facilities are extremely imperfect. The LCD panel production chain presents a typical "two ends outside" pattern, with upstream materials and equipment concentrated in Japan, South Korea, Taiwan and the mainland, and downstream terminal brands such as Apple also staying away from the United States. As a result, building a factory in an inland hinterland, such as Wisconsin, presents significant supply chain and logistical challenges.
Second, the shortage of blue-collar workers in the United States is well known. Since the 80s of the 20th century, the manufacturing industry has continued to shrink in the United States, and in addition to the restrictions on wages, the work discipline and culture of workers are also quite different from Foxconn's strict production model.
Third, it is not possible to get the tax subsidies it deserves. Foxconn's courage to take a gamble back then was largely tempted by the Trump administration's $4 billion tax credit. However, after Trump left office, Biden did not fulfill this promise, resulting in Foxconn being stretched thin in terms of financial support.
I have to say that Foxconn's investment is actually an all-or-nothing gamble, full of all kinds of hidden dangers. But Gou wants to gamble tens of billions of dollars in the United States, and seems to have no other intentions than to please the Trump administration.
Trump's trade policy bluff?
When it comes to Trump's role in the Foxconn project, it's shameful.
At the beginning, Trump used the banner of "reshoring of manufacturing" to exert pressure on foreign capital without danger. For Guo Taiming, he is even more moved by the reputation of "the greatest businessman", and brags that this is the "eighth wonder of the world" project.
However, it now seems that Trump's bluff back then was probably just to harvest votes in Wisconsin and win the support of local voters with a "cheating" industrial promise.
Of course, all this has passed, and we don't know if Guo Taiming regrets it, but we must be mindful of cooperating with the United States, and if you are not careful, you will be burned.