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Foxconn logs $259 million in Wisconsin supply chain spend for 2020

Foxconn Technology Group reported $259 million in spending across 254 Wisconsin-based suppliers last year, according to a report Foxconn recently filed with the Wisconsin Economic Development Corporation. Most of its supply chain spend was construction-related…


Foxconn Technology Group reported $259 million in spending across 254 Wisconsin-based suppliers last year, according to a report Foxconn recently filed with the Wisconsin Economic Development Corporation.

Most of its supply chain spend was construction-related with Foxconn building its 300,000 square-foot smart manufacturing center and its data center globe, two of four facilities currently on Foxconn’s 1,000-acre campus in Mount Pleasant.

About $224 million of Foxconn’s in-state supply chain spend was for construction while about $35 million was spent with suppliers supporting the company’s operations.

Within that spending, the largest portion, nearly $152.6 million, went to wholesale suppliers of appliances, housewares and consumer electronics. Electronic component manufactures accounted for nearly $78 million in spend while manufacturers of printed circuit assemblies accounted for about $6 million. Another $23 million was spent on real estate services, according to the report.

On average, the Wisconsin companies in Foxconn’s supply chain report provided the company an average of around $1 million in good and services last year. That figure is skewed by two venders that accounted for $151 million and $61 million each. Excluding those, the average is a little less than $188,000.

Foxconn had projected to make approximately $1.4 billion in supply purchases in Wisconsin annually once its LCD panel campus was fully operational. However, it’s unclear how much Foxconn will spend with Wisconsin suppliers annually moving forward – the company’s plans have evolved several times and while Foxconn has reached a new agreement with the state, the specifics of its operations have not yet been made public.

The company’s contract with the state does not include specific targets for supply chain spending with Wisconsin companies, but Foxconn is required to report on its spending to WEDC.

Foxconn also reported spending about $262.3 million in capital investment for its Wisconsin facilities last year. It estimates that about 3,200 people worked a construction job between 2018 and 2020, according to the report.

Foxconn did report that it began producing products for data infrastructure in 2020 and that in 2021, the company would soon add more production lines within its smart manufacturing center in response to customer demand.

Foxconn also reported assembling over 13 million face masks in response to the coronavirus pandemic. The contract manufacturer also worked with Medtronic to produce ventilators.

In a letter accompanying the report, Foxconn leadership said the company’s business pursuits are not limited to just data infrastructure and that subject to market demand, could include “electric vehicles, digital health, robotics, semiconductor and 5G technologies.”

Foxconn leadership also said the company’s future in Wisconsin “remains bright” and that “exciting times are to come,” according to the letter accompanying the report.

“Despite challenging circumstances, Foxconn’s Wisconsin operation may soon become a top manufacturer of data infrastructure in the United States,” Foxconn chairman Young Lieu and vice-chairman Jay Lee said in a letter that accompanied the report. “As a contract manufacturer, Foxconn has found business opportunities with companies interested in purchasing product made in the United States with supply chain security peace of mind.”

Earlier this year, Foxconn and California car maker Fisker Inc. announced a partnership for Fisker’s Project PEAR, an initiative whereby both companies would build parts for electric vehicles including chipsets and semiconductors.

BizTimes received the following statement in response to a request for information regarding the development of electric vehicles in Wisconsin.

“Public disclosure of records relating to pending or potential opportunities impedes WEDC’s ability to productively negotiate with companies about potential projects that will create jobs, increase investment in the state and generate additional state revenue for state and local governments,” WEDC said in a letter Monday.

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