But the company says it continues to develop Wisconsin property and still expects up to 13,000 employees.
Although the new governor Tony Evers has criticized the package, he has not departed from the promises made under the package.
Louis Woo, Special Assistant to Foxconn's CEO Terry Gou, told Reuters that the company is now planning to establish a "technology hub" in Wisconsin instead of the factory. It would largely consist of research equipment along with some packing and assembly operations. Woo said that three-quarters of Foxconn's potential jobs would be in research and development and design, rather than in the blue collar production. He said it would not be a factory.
When asked about comments related to Woo, the Foxconn representative did not contest them.
"We are still committed to the Wisconsin Valley Science and Technology Park project, creating 13,000 jobs and our long-term investment in Wisconsin," the company said. "The world market environment that existed when the project was first announced has changed. Because our plans are driven by our customer plans, it has made it necessary to adjust plans for all projects, including Wisconsin. The Wisconsin project remains our company's priority."
The state stimulus package is ready to give the company up to $ 3 billion in tax credit and break. It is one of the biggest stimulating packages that the company promised to find a factory in the United States. And, according to Wisconsin's estimates, the country will lose tax revenue at least until 2043.
The state stimulus package allows Foxconn to adjust its plans in response to changing business conditions, said Mark Hogan, head of the National Independent Economic Development Authority, who discussed the package. He added that the success of a company depends on its ability to respond to changing customer demand.
Hogan also noted that Foxconn will only receive a full package of incentives if it reaches all the targets for job creation and investment in the country.
"Our ongoing discussions with company officials reflect Foxconn's continued commitment to the Wisconsin State," Hogan said.
However, the governor's office issued a statement stating that Foxconn was surprised by the change in plans.
"More details about the future development of this project will be needed for reviewing and evaluating our team," said Joel Brennan, who has been nominated to oversee the public office. He said the country "will continue to monitor the project to ensure that the company delivers its promises."
Mount Pleasant and the village of Racine County, where the company will be built, have also agreed to provide $ 764 million in tax relief to help get the item, including land acquisition and free delivery from Foxconn. The state expects to spend about $ 400 million on road improvement, including adding two lanes to nearby Interstate 94.
It is not clear whether the focus change of the plant would change the stimulus package based on the number of jobs created and the amount of investment. Foxconn had originally planned to invest $ 10 billion in the factory.
Foxconn is best known for its massive plants in China that produce products such as iPhones for other companies.
"The construction of this facility reflects the return of LCD electronics and electronic production in the United States, the country we love," said Trump at that time. "That's where we want our jobs. To make such an unbelievable investment, President Gou gave his faith and confidence in the future of the American economy – in other words, if I wasn't elected, he would definitely not."
CNN Jeremy Diamond participated in this report.