It was supposed to be the "eighth wonder of the world." That’s what the talk was back in 2017 when the golden shovels hit the dirt in Mount Pleasant. If you’re asking what did Wisconsin do during that era, the answer usually starts and ends with a $10 billion promise that fundamentally reshaped how states look at corporate subsidies.
The deal was massive. It was unprecedented. Honestly, it was a bit of a gamble that didn't pay out the way anyone expected. When the Taiwanese electronics giant Foxconn pledged to build a "Generation 10.5" liquid crystal display (LCD) plant, the numbers being tossed around were staggering. We're talking 13,000 jobs. We're talking a facility so big it would be visible from space. But if you drive past that site today, you aren't seeing a sprawling city of tech workers churning out giant TV screens. You're seeing something much, much smaller.
The Massive Subsidy Package That Started It All
So, let's get into the weeds. What did Wisconsin do to lure them in? They put a historic amount of taxpayer money on the line. Under then-Governor Scott Walker, the state legislature approved a package of tax breaks and incentives totaling roughly $3 billion. Later, with local infrastructure costs and utility upgrades factored in, that number crept closer to $4 billion.
It was a staggering sum.
Critics at the time, like those from the nonpartisan Legislative Fiscal Bureau, warned that it would take decades—specifically until 2043—for the state to break even on the investment. Proponents argued it was a "once-in-a-century" opportunity to turn the Midwest into the "Wisconn Valley." They wanted to move away from the "Rust Belt" label. They wanted high-tech manufacturing.
The state essentially rewrote its environmental rules for the project too. They allowed Foxconn to discharge materials into wetlands and divert water without the usual rigorous permitting processes that apply to basically everyone else. It was a "whatever it takes" approach.
The Land Grab and the "Blighted" Label
To make room for the factory, the village of Mount Pleasant had to get aggressive. This is where things got personal for a lot of residents. The local government used eminent domain to acquire properties. In some cases, they declared perfectly fine, well-maintained homes as "blighted" just to legally clear the way for the development.
Imagine living in a house your family has owned for generations, only to be told it's technically a "blight" so a foreign corporation can build a factory. It was a mess. Families were displaced. Farms that had been in operation since the 1800s were razed.
What Actually Got Built vs. The Original Dream
By 2019, the cracks were showing. It became clear that the "Generation 10.5" plant—the one that makes those massive 75-inch TV panels—wasn't happening. The market had changed. Prices for LCDs had cratered.
Foxconn pivoted.
They said they’d build a smaller "Generation 6" plant instead. Then they talked about making coffee kiosks. Then ventilators during the pandemic. At one point, there was talk of electric vehicles with Fisker, but that didn't really materialize into a massive production line either.
Today, the site has a few large buildings, including a distinctive glass globe, but the workforce is a fraction of that 13,000 goal. According to state records from the Wisconsin Economic Development Corporation (WEDC), the company has only qualified for a small portion of the original incentives because they simply haven't hit the hiring or investment targets.
The 2021 Contract Reset
When Governor Tony Evers took office, his administration had to clean up the mess. They couldn't just cancel the deal without massive legal headaches, so they renegotiated. In 2021, a new deal was struck.
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- The potential tax credits were slashed from nearly $3 billion down to about $80 million.
- The job requirement was dropped from 13,000 to 1,454.
- The investment requirement went from $10 billion to $672 million.
This was a massive "right-sizing" of the project. It protected taxpayers from paying out billions for jobs that didn't exist, but it also confirmed that the original dream was officially dead.
The Arrival of Microsoft: A New Chapter
If you look at the site now, the story is changing again. In a weird twist of fate, the very land that was cleared for Foxconn is now becoming a hub for something else entirely: Data centers.
Microsoft stepped in.
In 2023 and 2024, Microsoft began buying up hundreds of acres of that "blighted" land. They aren't building a factory to make gadgets; they are building massive server farms to power AI and cloud computing. They've already committed billions of dollars to the area. Unlike the Foxconn deal, the Microsoft project focuses more on massive capital investment and less on a 13,000-person headcount, which is a bit more realistic for the modern economy.
It’s a bit of a "lesson learned" moment for the state. They realized that chasing a massive number of manufacturing jobs in an era of automation is risky. Data centers provide a steady tax base, even if they don't employ an entire city's worth of people.
Why This Still Matters for Economic Development
The question of what did Wisconsin do is now a case study taught in business schools and public policy classes. It’s the ultimate cautionary tale about "mega-deals."
When a state offers billions to a single company, it puts all its eggs in one basket. If that company's global strategy changes—as Foxconn's did—the state is left holding the bag. It also creates an uneven playing field. Small businesses in Racine or Milwaukee didn't get billions in tax breaks; they just had to watch as a global giant got the red carpet treatment.
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Key Takeaways from the Wisconsin Experience
- Clawbacks are essential. Wisconsin's original deal had some protections, but the renegotiated deal proved that you need rigid, performance-based milestones before a single cent of taxpayer money leaves the treasury.
- Infrastructure stays, even if the company leaves. The roads and power upgrades built for Foxconn are exactly what made the site attractive to Microsoft later on. Even a failed deal can leave behind "bones" that someone else can use.
- Transparency is a requirement. Much of the early Foxconn negotiations happened behind closed doors. This led to distrust and a lack of public buy-in.
- Market agility beats long-term promises. You can't predict what the tech market will look like in five years, let alone twenty. Any deal that spans decades needs to be flexible.
Moving Forward: Actionable Insights for Taxpayers and Leaders
If you’re a resident or a local leader looking at the aftermath, there are actual steps to take to ensure this doesn't happen again. It’s not just about complaining; it’s about changing the framework of economic development.
Scrutinize the "Cost Per Job"
Whenever a new deal is announced, ignore the big "total investment" number. Instead, divide the total subsidy by the number of guaranteed jobs. In the original Foxconn deal, the state was effectively subsidizing each job at over $200,000. That’s rarely a good ROI for the public.
Demand Diversification
Instead of one $10 billion plant, many economists argue that investing $100 million into 100 different mid-sized companies creates a more resilient economy. If one fails, the whole region doesn't collapse.
Prioritize Land Rights
The "blight" designation used in Mount Pleasant was a legal loophole that hurt real people. Supporting local legislation that tightens the definition of eminent domain can prevent the "taking" of private property for the benefit of other private corporations.
Wisconsin's journey with Foxconn was a wild ride of political ambition and economic reality. It serves as a reminder that in the world of big business, a signed contract is often just the beginning of the negotiation, not the end. The state has moved from the "LCD capital" to a "Data Center hub," proving that while the original plan failed, the land and the people remain ready for whatever comes next.
The most important thing now is to keep the pressure on for transparency in these deals. Taxpayer money is an investment, and as any investor knows, you have to watch the books. Don't let the shiny renderings of "future cities" distract from the hard numbers of the present. Keep an eye on the WEDC reports and hold local officials accountable for the actual job numbers, not the promised ones. This is the only way to ensure that the next time someone asks "what did the state do," the answer is "they made a smart, sustainable investment."