BEIJING—Electronics manufacturer Foxconn Technology Group is considering investing $7 billion to build a flat-panel screen factory in the U.S., but the company founder says incentives will be needed to make the deal happen.

Speaking at a Foxconn company event in Taiwan on Sunday, founder and chairman Terry Gou said the factory could create 30,000 to 50,000 jobs in the U.S., and discussions were already under way with state and local officials in Pennsylvania and other states.

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