Foxconn released a statement saying that the company's need to be responsive to the global market environment necessitated a reconsideration of which technology will best suit the needs of its customers.
"We remain committed to ensuring that Foxconn's investment in our community will bring unparalleled economic development, job growth and enhanced quality of life for those in Racine County and throughout Wisconsin".
Trump also suggested that Foxconn hire military veterans to meet the demand for tech workers, Gou said, adding that he thinks it is a feasible proposal.
But Foxconn has repeatedly revised its plans for what will be made in Wisconsin and who will work there, causing confusion in the state and leading critics of the project this week to accuse Foxconn of a "bait and switch".
Foxconn says after productive discussions with the White House, and a personal conversation between President Trump and Foxconn chairman Terry Gou, it plans to proceed with the smaller manufacturing facility.
The company said it was looking forward to continuing its expansion of investment in American talent in Wisconsin and the U.S.
Foxconn had said it was considering a high-tech research hub for the site, earlier planned for making LCD panels.
"When the jobs and the manufacturing equipment shows up", he said, "we'll believe it".
September 18, 2017: Republican Gov. Scott Walker signs an unprecedented $3 billion state incentives package for the plant, brushing aside critics who warn the package is too expensive. Trump has touted the $4 billion project as the "eighth wonder of the world" and attended the groundbreaking ceremony in-person.
Foxconn Technology Group said Friday it will go ahead with plans to manufacture liquid-crystal displays in Wisconsin after an intervention from President Donald Trump.
Foxconn's planned factory is slated to provide 13,000 jobs in the state.
Instead of hiring factory workers, Foxconn said that it hoped to hire engineers and researchers.
Wisconsin state and local governments promised roughly $4 billion to Foxconn, the richest incentive package in state history and the biggest pledged by a state to a foreign corporation in US history. Governor Tony Evers' team has denied reports that he is trying to renegotiate the Foxconn contract.
At a Foxconn company party, Gou confirmed that he spoke with Trump on Friday, and that the president wanted him to hire veterans and bring talent from US coastal areas to the Midwest.
"They're offering this commitment that if the village gets into trouble, (state officials) will do everything they can to ask the Legislature to appropriate monies to pay the debt service", said Moody's lead analyst Josh Grundleger.
"There's no limit, frankly, to skepticism if the messaging isn't coherent", Evers told reporters. "This is distressing news for Wisconsin taxpayers", said State Representative Mark Spreitzer.