Foxconn Chairman Terry Gou announced Foxconn is looking to transition 10,000 jobs to automated production this year.

Innolux Chairman Tuan Hsing-Chien confirmed the desire to transition 10,000 jobs which should be enforced this year.

Foxconn is the world’s largest contract electronic manufacturer with factories in several countries. Foxconn works to produce devices like iPad, iPhone, Kindle, PlayStation, and XBox. Hsing-Chien told reporters that pink slips will soon be handed out at its Innolux display company.

Innolux manufactures displays for Apple iPhones, in addition to other TV and monitor companies. The company plans to replace about 75 percent of their current capabilities with automation by the end of the year. The manual workforce will be cut by about 16 percent by the close of 2018, reports the Inquirer.

“We will reduce our total workforce to less than 50,000 people by the end of this year, from some 60,000 staff at the end of 2017,” said Hsing-Chien at a press conference.

Gou’s announcement came on the heels of a previous confirmation of an investment in artificial intellegence (AI) processes. The company will invest $342 million in implementing AI processes into their factories.

The AI will reportedly help speed up future developments––one of which is a new display called active matrix mini-LED.

Executive Vice President of Innolux, Ting Chin-lung says the new screens will outperform their predecessors––OLED screens. The new matrix screens are being proposed for use within vehicles, and feature a foldable design. Innolux is reportedly in the process of speaking to multiple car manufacturers about the screens.

Meanwhile, companies continue to invest money in the previous OLED screens, featured on the iPhone X, MacBook Pro, and newer Dell monitors.

The Foxconn announcement is stirring controversy in Wisconsin, where a $4.5 billion Foxconn manufacturing facility is preparing to be built. Taxpayers worry that this move to automated production could threaten the possibility of the facility generating jobs.

Former state representative David Bowen stated, “There is no telling what Foxconn might do at a future Wisconsin plant, because the agreement Governor Walker signed offered no protections for our enormous investment against automation.”

“All we can do is hope Foxconn will indeed employ humans for the entire length of the deal,” Bowen said. “Preferably ones who live in Wisconsin, in exchange for the exorbitant amount of money the next few decades of Wisconsin taxpayers will be handing them.” The company’s decision to transition 10,000 jobs will undoubtedly have a substantial effect on the local economy.

Read more about AI here.