The Wisconsin Economic Development Corporation approved up to $16 million in new incentives for Foxconn as the United States intensifies efforts to build a more resilient semiconductor supply chain amid rising security concerns involving China and Taiwan. The award, announced November 25, supports the Taiwanese manufacturer's plan to invest an additional $569 million in Racine County and create 1,374 jobs over four years, expanding Foxconn's role in America's semiconductor and electronics manufacturing footprint.
WEDC deputy secretary and chief operating officer Sam Rikkers said the agency sees the contract amendment as validation of Foxconn's long-term commitment to the state. "WEDC has been committed to ensuring Foxconn's success and growth in our state. This new amendment reflects Foxconn's status as one of the many leading global manufacturers that have chosen to grow in Wisconsin," Rikkers said, framing the expansion as part of a broader push to anchor high-tech production in the Midwest.
The decision comes as policymakers confront ongoing strategic risks surrounding Taiwan, home to the world's most advanced chipmakers. Beijing continues to insist Taiwan is a breakaway province, while treating Taiwanese independence as a criminal offense. Washington, which recognizes the People's Republic of China diplomatically but supports Taiwan's democracy and self-defense capabilities, has sought to reduce its vulnerability to supply disruptions should a future conflict occur.
Taiwan's importance to the U.S. economy is significant: exports account for roughly 70% of its GDP, and Taiwanese firms remain central to global electronics supply chains. Unofficial diplomatic relations operate through the American Institute in Taiwan, which manages cooperation in areas including health, technology, investment and semiconductors, even as formal diplomatic ties remain absent.
U.S. officials have repeatedly identified overreliance on Taiwanese manufacturing as a strategic liability-one addressed through the CHIPS and Science Act, signed in 2022. The legislation aims to boost domestic semiconductor fabrication and strengthen research capacity to ensure the United States maintains leadership in advanced technologies.
In Taipei, senior officials continue to warn that China's posture leaves little room for complacency. Deputy Foreign Minister Chen Ming-chi said in an interview that "China cannot peacefully coexist with democracies," arguing that Taiwan cannot rely on assurances alone. Chen referenced the distinction between immediate invasion threats and daily pressure, noting that U.S. weapons remain essential to Taiwan's defense strategy.
President Lai Ching-te reinforced those concerns on November 26, announcing a special $40 billion budget dedicated to arms purchases, enhanced air-defense systems and development of a Taiwan Dome protection project. Lai warned that "China's threats to Taiwan and the Indo-Pacific region are escalating. Recently, various types of military intrusions, maritime gray zones, and disinformation campaigns have been occurring in Japan, the Philippines, and around the Taiwan Strait, causing deep unease and distress to all parties in the region."
