Foxconn is one of Apple's primary iPhone assemblers in China, but in Wisconsin, the company is initially looking at producing display panels that can be used in large-screen electronics like televisions, according to the report.
The report, citing two people allegedly familiar with the plans, said Foxconn is also looking in the Detroit area for a possible factory.
Last month, Foxconn chairman Terry Gou confirmed that Foxconn is interested in investing at least $10 billion towards U.S. manufacturing in seven states: Ohio, Pennsylvania, Michigan, Illinois, Wisconsin, Indiana, and Texas.
Foxconn's display factory in Wisconsin will reportedly cost at least $7 billion. Gou said it could create tens of thousands of American jobs.
Earlier, Gou confirmed Apple is willing to invest in the facility, suggesting the Wisconsin plant could eventually also be used to manufacture smaller displays for products like iPhones, iPads, and MacBooks.
Foxconn has reportedly been in talks with U.S. government officials for several months over the facility, including House Speaker Paul Ryan, a Republican who represents a district in southeastern Wisconsin.
Gou said Foxconn will work closely with Japanese display maker Sharp, which it acquired last year, on its U.S. investment plans.
Rumors suggesting Foxconn might open its first U.S. factory began circulating last November, after Apple reportedly asked its suppliers Foxconn and Pegatron to look into the feasibility of producing iPhones in the United States.