Trump’s big Hon Hai deal: 5 things you need to know

The China Post

TAIPEI, Taiwan — U.S. President Donald Trump and Hon Hai chief Terry Gou announced Wednesday that the Taiwanese tech giant would build a massive new display plant in Wisconsin. Here are five things to know about the deal:

1. The factory is big in a lot of ways
Trump promised during his campaign to bring the manufacturing bases of companies like Apple to the U.S. This is almost like that — Hon Hai is a key part of the Apple supply chain, but this factory will make parts for non-Apple products — but it is still a symbolic victory.

But it’s even more of a victory in real terms. Here it is in sheer numbers:

• The total investment is worth US$10 billion over four years (the plant should open in 2020)
• Initially employing 3,000 people, the plant is estimated to ultimately create as many as 13,000 jobs
• Up to 150 supply firms supporting the plant will set up shop in the same area
• It’s estimated the facility will create 22,000 more indirect jobs and another 10,000 construction jobs
According to Wisconsin Governor Scott Walker, the average salaries of the 13,000 factory jobs will be US$53,000 a year, plus benefits
• The factory will cover 1.86 million square meters

2. Trump got the idea to put it in Wisconsin while he was flying over the state

The factory has been in the planning for years, and competition to land it has been fierce. Various states in the running — including Michigan, Ohio and Pennsylvania — have been offering subsidies and other incentives to try to attract the investment.

But Trump was apparently the decisive factor.

The president’s chief of staff Reince Priebus, who along with House speaker Paul Ryan is from the state, said Trump was flying over the state in April when he spotted vacant land that previously housed a Chrysler Motors plant, AP reports.

“He said, ‘That land should be used,'” Priebus was quoted as saying. “So when Foxconn came into the White House, into the Oval Office, the president said, ‘I know a good spot that you should go to, that place in Kenosha.'”

Trump then suggested the location to Gou during one of the Hon Hai chief’s previous visits to the White House.

That said, the land is an ideal location. As AP notes, it is close to Lake Michigan, which will ensure it a steady water supply, which is integral to the plant’s operation.