Foxconn (TPE: 2354) , one of the largest contract electronics manufacturers, recently announced plans to build its first American factory in the state of Wisconsin. A Taiwanese supplier that primarily makes electronics parts for well-known technology companies like Apple (AAPL  ), Foxconn's promise to introduce a factory has the potential to add industry jobs that the American economy currently needs. In doing so, Foxconn's future factory may play a key role in President Trump's desires to increase domestic manufacturing in the United States.

Over the course of three years, Foxconn reportedly will spend approximately $10 billion on a 20,000 square-foot-plant. Nevertheless, Foxconn's new factory won't be built from the company's funds alone: Foxconn will be allowed to save $150 million through tax breaks on building goods, along with an estimate of $5.7 billion of the amount will be invested by Wisconsin businesses. On a smaller scale, this means that supporting the construction of the factory would cost the state of Wisconsin $230,000 per worker. While Foxconn plans to hire about 3,000 employees upon opening its plant, the electronics supplier may ultimately employ about 13,000 people in Wisconsin, according to the Trump administration. The capability of Wisconsin to provide that amount of workers towards a factory remains unknown. Beyond Wisconsin, however, the investment may inspire other similar factory plans in states like Illinois, Indiana and Michigan.

© Prachatai / Flickr.com

Although the Taiwanese company is known for their work with Apple, the announced factory for Wisconsin will initially produce LCD screens for the Japanese electronic company Sharp (TYO: 6753). Sharp's largest market already lies in the U.S, and domestic manufacturing in the states would allow the TV supplier to save money on shipping costs. Foxconn Founder and Chairman Terry Gou expanded on the benefits of the new factory, stating that he and the company are "thrilled to build a state-of-the art display fabrication plant in America's heartland, which will be the first of a series of facilities we are building in several US states. Wisconsin offers a talented, hardworking workforce, and a long track record in advanced manufacturing, all of which presents an extraordinary opportunity."

While Foxconn's announcement would be a positive for the state of Wisconsin and the greater United States, its dedication to building a factory has come and gone before. In 2013, the company promised to create a plant in Pennsylvania for 500 workers, with an hefty investment of $30 million. Later abandoning plans for the plant, Foxconn induced some distrust from those left behind. "Foxconn has a history of talking big and not necessarily delivering on their commitments," said President of the Alliance for American Manufacturing Scott Paul.

© Steve Jurvetson / Flickr.com

Gou's plans to shift from Taiwan to the United States to manufacture electronics is not an anomaly in the tech world. Tesla's (TSLA  ) gigafactory, a site currently under construction, will create lithium-ion batteries in Nevada. Likewise, the electronics company Samsung (KRX: 005930) plans to create a new factory in South Carolina, while the technology company Intel (INTC  ) desires to invest $7 billion into a computer-chip factory in Arizona.

There appears to be a trend of companies looking to manufacture in the States, the benefits of which include tax breaks, lower shipping costs, and new jobs. We may see another industrial boom in the U.S. yet.