Foxconn

Foxconn Technology Group
鴻海科技集團
Foxconn 富士康
Public
Traded as TWSE: 2317
SEHK: 2038
LSE: HHPD
Industry Electronics
Founded February 20, 1974 (1974-02-20)
Founder Terry Gou
Headquarters Tucheng District, New Taipei, Taiwan
Area served
 Worldwide
Key people
 Terry Gou
(Chairman and President)
Products Electronics, electronic components
Services Electronics manufacturing services
Revenue Increase US$132.54 billion (2014)[1]
Increase US$4.504 billion (2014)[1]
Increase US$4.106 billion (2014)[1]
Total assets Increase US$77.47 billion (2014)[1]
Total equity Increase US$29.26 billion (2014)[1]
Number of employees
 1.3 million (2015)[2]
Subsidiaries Sharp Corporation
Website www.foxconn.com
Foxconn
Traditional Chinese 鴻海精密工業股份有限公司
Simplified Chinese 鸿海精密工业股份有限公司
Literal meaning Hon Hai Precision Industry Co., Ltd.
Trading name
Traditional Chinese 富士康科技集團
Simplified Chinese 富士康科技集团
Literal meaning Foxconn Technology Group

Hon Hai Precision Industry Co., Ltd., trading as Foxconn Technology Group, is a multinational electronics contract manufacturing company headquartered in New Taipei, Taiwan. Foxconn is the world's largest electronics contractor manufacturer,[3] and the third-largest information technology company by revenue.[4]

Foxconn is primarily a contract manufacturer and its clients include major American, Finnish, Japanese, and Canadian electronics and information technology companies. Notable products that the company manufactures include BlackBerry,[5] iPad,[6] iPhone,[7] Kindle,[8] PlayStation 4, PlayStation 3, Xbox One, Nokia and Wii U.[9]

Foxconn has been involved in several controversies relating to how it manages employees in China. There has been a history of suicides at its factories blamed on working conditions. In January 2012, about 150 Foxconn employees threatened to commit mass-suicide in protest at their working conditions.[10]

History

Foxconn connector box tag in 2014

Hon Hai Precision Industry Co., Ltd. was founded in 1974 by Terry Gou as a manufacturer of electrical components (notably electrical connectors for computer components,[7] which found use in the Atari 2600).[11] Foxconn was originally a trade name of Hon Hai, and a subsidiary later received the name.[7] Hon Hai's first manufacturing plant in mainland China opened in Longhua Town, Shenzhen, in 1988.[7]

In 2001, Intel switched its manufacture of Intel-branded motherboards from Asus to Foxconn.[12]

In November 2007, Foxconn announced plans to build a new US$500 million plant in Huizhou, Southern China.[13]

In January 2012, Foxconn named Tien Chong (Terry) Cheng chief executive;[14] he soon resigned, citing health problems.[15]

In March 2012, Foxconn agreed to acquire a 10 percent stake in the Japanese electronics company Sharp Corporation, for US$806 million, and to purchase up to 50 percent of the LCD displays produced at Sharp's plant in Sakai, Japan.[16]

In September 2012, Foxconn announced plans to invest US$494 million in the construction of five new factories in Itu, Brazil, creating 10,000 jobs.[17]

In 2014, the company purchased Asia Pacific Telecom as well as winning at auction some spectrum licenses allowing it to operate 4G telecommunications equipment in Taiwan.[18]

On February 25, 2016, Sharp accepted the ¥700 billion (US$6.24 billion) takeover bid from Foxconn that acquires over 66 percent of Sharp's voting stock.[19] However, hours later the deal was put on hold after "contingent liabilities... worth perhaps billions of dollars...came to light."[20] A joint press statement released on 30 March 2016 finalised the deal but at a price significantly lower than a month earlier.[21]

Operations

Foxconn has factories in Asia, Brazil, Europe, and Mexico that, as of 2012, together comprise approximately 40 percent of all consumer electronics products sold.[22]

China

Foxconn has 12 factories in nine Chinese cities—more than in any other country.[23]

Foxconn's largest factory worldwide is in Longhua Town, Shenzhen, where hundreds of thousands of workers (varying counts include 230,000,[22] 300,000,[24] and 450,000[25]) are employed at the Longhua Science & Technology Park, a walled campus[7] sometimes referred to as “Foxconn City”.[26] Covering about 1.16 square miles (3 square km),[27] it includes 15 factories,[26] worker dormitories, 4 swimming pools,[28] a fire brigade,[7] its own television network (Foxconn TV),[7] and a city centre with a grocery store, bank, restaurants, bookstore, and hospital.[7] While some workers live in surrounding towns and villages, others live and work inside the complex;[29] a quarter of the employees live in the dormitories, and many of them work up to 12 hours a day for 6 days each week.[22] Another of Foxconn's factory "cities" is Zhengzhou Technology Park in Zhengzhou, Henan province, where a reported 120,000 workers are employed as of 2012.[30]

Foxconn continues to expand, and planned factories include sites at Wuhan in Hubei province, Haizhow, Kunshan in Shanhai, Tianjin, Beijing, and Guangdong in Guangzhou, China.[23]

Brazil

All company facilities in South America are located in Brazil,[31] and these include mobile phone factories in Manaus and Indaiatuba as well as production bases in Jundiai, Sorocaba, and Santa Rita do Sapucaí.[32] The company is considering more investments in Brazil.[33]

Europe

A Foxconn factory in the Czech Republic

Foxconn has factories in Hungary,[34] Slovakia,[33] Turkey[35] and the Czech Republic.[36] Foxconn factories are strategically located in Europe to ensure rapid fulfillment for its customers. It is the second-largest exporter in the Czech Republic.[36]

India

Foxconn has had operational units since 2006 in the Special Economic Zone of Chennai, Tamil Nadu.[37] This unit is closed as of December 24, 2014. This affected 22,000 employees.[38] As of mid 2015 Foxconn Technology was in talks to manufacture Apple's iPhone in India.[39] In 2015 Foxconn announced it would be setting up twelve factories in India and would create around one million jobs.[40] Foxconn will invest in India in manufacturing, energy and e-commerce sectors in 2015. Foxconn will also bring supply chain companies in India. India will work with Adani for more efficient expansion of Foxconn in the country. On August 8, 2015, Foxconn signed MOU with Government Of Maharashtra to set up electronic manufacturing plant in Maharashtra with the investment of $5 billion within the 5-year period.[41] Recently, it started manufacturing products of OnePlus and Gionee.

Japan

Foxconn and Sharp Corporation jointly run two plants manufacturing large-screen televisions in Sakai, Osaka. In August 2012, it was reported that Sharp, while doing corporate restructuring and downsizing, was considering selling the plants to Foxconn, which was believed to be receptive to the plan.[42]

Foxconn likely acquired these plants when it purchased Sharp in 2016.

Malaysia

As of 2011, Foxconn had at least seven factories in Johor state,[43] possibly at Kulai, where it is developing an industrial park that will include four factories once completed.[44]

Mexico

Foxconn has a facility in San Jerónimo, Chihuahua, that assembles computers,[45] and two facilities in Juárez – a former Motorola production base that manufactures mobile phones,[46] and a set-top box factory acquired from Cisco Systems.[47] LCD televisions are also made in the country by Foxconn, in a plant acquired from Sony.[48]

South Korea

The company invested $377 million in June 2014 to pick up a 4.9 percent shareholding in South Korean IT services provider SK C&C.[49]

United States

In December 2013, Foxconn announced plans to invest $30 million, over two years, to build a manufacturing facility in Pennsylvania, as well as to invest $10 million into R&D at Carnegie Mellon University. The new facility, to be located in Harrisburg, will develop robotic equipment.[50][51] As of November 2015, the investments had not been made.

Major customers

Major customers of Foxconn include or have included:

(headquarters location in parentheses)

Controversies

Foxconn has been involved in several controversies all relating to employee grievances or treatment. Foxconn has more than a million employees.[67] In China, it employs more people than any other private company as of 2011.[33]

Working conditions

Allegations of poor working conditions have been made on several occasions.[68] News reports highlight the long working hours,[26][27] discrimination against mainland Chinese workers by their Taiwanese co-workers,[69] and lack of working relationships at the company.[70] Although Foxconn was found to be compliant in the majority of areas when Apple Inc. audited the maker of its iPods and iPhones in 2007,[7] the audit did substantiate a few of the allegations.[71] Despite the suicide crisis which took place from January to May 2010, Steve Jobs defended Foxconn in June 2010 as being "pretty nice" and "not a sweatshop".[72]

Concerns increased in early 2012 due to an article published in The New York Times.[73] Substantiating some of the article's claims, a 2012 audit performed by the Fair Labor Association at the request of Apple Inc. found that workers routinely received insufficient overtime pay and suggested that workplace accidents may be common.[74][75]

A Hong Kong non-profit organisation, Students and Scholars Against Corporate Misbehavior, has written numerous negative reports on Foxconn's treatment of its employees.[76] These typically find far worse conditions than the 2012 Fair Labor Association audit did, but they rely on a far smaller number of employee informants—100 to 170.[77] The Fair Labor Association audit in 2012 used interviews with 35,000 Foxconn employees.[74]

In September 2012, a fight at worker dormitories in Taiyuan, Shanxi, escalated into a riot involving 2,000 people and was quelled by security.[78][79]

In October 2012, the company admitted that 14-year-old children had worked for a short time at a facility in Yantai, Shandong Province.[80] Foxconn said that the workers involved were part of an internship program.[80] Individuals as young as 16 can legally work in China.[80]

Also in October 2012, a young worker, Zhang Tingzhen, was threatened to have Hon-Hai medical support canceled when doctors remonstrated against moving him for treatment in Huizhou from the hospital in Shenzhen. He suffered an electrical shock, fell, and was injured to the extent that doctors needed to remove nearly half of his brain. This left him in no condition to travel to Huizhou, the city where he was initially hired, 43 miles away. The company stated that it was acting within labor laws.[81][82][83][84]

Suicides

Main article: Foxconn suicides

Suicides among Foxconn workers have attracted media attention. One was the high-profile death of a worker after the loss of a prototype and the other, a series of suicides linked to low pay in 2010. Suicides of Foxconn workers continued into 2012, with one in June 2012.[85]

Sun Danyong, a 25-year-old man, committed suicide in July 2009 after reporting the loss of an iPhone 4[86] prototype in his possession.[87]

In reaction to a spate of worker suicides in which 14 people died in 2010,[88] a report from 20 Chinese universities described Foxconn factories as labor camps and detailed widespread worker abuse and illegal overtime.[89] In response, Foxconn installed suicide-prevention netting at the base of buildings in some facilities,[68] and it promised to offer substantially higher wages at its Shenzhen production bases.[90] Workers were also forced to sign a legally binding document guaranteeing they and their descendants would not sue the company as a result of unexpected death, self-injury or suicide.[91]

See also

References

  1. 1 2 3 4 5 "HON HAI PRECISION INDUSTRY (2317:Taiwan Stock Exchange): Financial Statements - Businessweek". FT. Retrieved 5 January 2015.
  2. ↑ http://www.foxconn.com/Files/annual_rpt_e/2014_annual_rpt_e.pdf
  3. ↑ "Strikes End at Two Chinese Automotive Suppliers". Reuters. 2010-07-22.
  4. ↑ "Top 50 Global Technology Companies". Datamonitor.
  5. ↑ Molina, Brett (2013-12-20). "BlackBerry shares surge 15.5% on Foxconn deal". USA Today.
  6. ↑ "Apple Adding More iPad Production Lines To Meet Holiday and 2011 Demand". San Francisco Chronicle. 2010-11-23.
  7. 1 2 3 4 5 6 7 8 9 "The Forbidden City of Terry Gou". The Wall Street Journal. 2007-08-11.
  8. 1 2 "Kindle Screen Maker Will Increase Capacity To Meet Demand". Computer World. 2010-07-28.
  9. ↑ "iPhone, Wii U Manufacturer Admits to Employing Children". IGN. October 17, 2012. Retrieved October 17, 2012.
  10. ↑ "'Mass Suicide' Protest at Apple Manufacturer Foxconn Factory". The Daily Telegraph. 11 Jan 2012.
  11. ↑ Balfour, Frederik & Culpan, Tim (September 9, 2010). "Everything Is Made by Foxconn in Future Evoked by Gou's Empire". Bloomberg News.
  12. ↑ Mueller, Scott (2012). Upgrading and Repairing PCs (20th ed.). Indianapolis: Que. p. 24. ISBN 978-0-7897-4710-5.
  13. ↑ "Foxconn International plans new $500 million South China plant". Reuters. 22 November 2007. Retrieved 17 February 2012.
  14. ↑ "Executive Profile: Tien Chong Cheng". foxconn international hldgs (2038:Hong Kong). Bloomberg Businessweek. Retrieved 20 November 2012.
  15. ↑ Buetow, Mike (5 July 2012). "Foxconn CEO to Resign". Circuits Assembly. UP Media Group. Retrieved 20 November 2012.
  16. ↑ "Foxconn owner Hon Hai buying 10 percent stake in Japanese electronics giant Sharp for $806M". The Washington Post. 27 March 2012. Retrieved 27 March 2012.
  17. ↑ "Foxconn invests more in Brazil". Taipei Times. 20 September 2012. Retrieved 1 December 2012.
  18. ↑ FAITH HUNG AND MICHAEL GOLD (26 May 2014). "Foxconn to buy $390 million stake in Taiwan telecom operator in 4G push". reuters.com. Thomson Reuters. Retrieved 10 April 2016.
  19. ↑ "Sharp accepts $6.24 billion takeover bid from Foxconn". The Verge. Retrieved 26 February 2016.
  20. ↑ "Why would Foxconn buy Sharp? It’s all about the iPhone". Quartz. Retrieved 3 March 2016.
  21. ↑ |url=http://www.sharp-world.com/corporate/news/160330.pdf
  22. 1 2 3 Duhigg, Charles; Keith Bradsher (January 21, 2012). "How the U.S. Lost Out on iPhone Work". New York Times. Retrieved January 24, 2012.
  23. 1 2 Lau, Mimi (December 15, 2010). "Struggle for Foxconn Girl Who Wanted To Die". South China Morning Post. Retrieved April 27, 2012.
  24. ↑ "Firm Shaken by Suicides". Los Angeles Times. May 26, 2010.
  25. ↑ "Foxcon Plans To Increase China Workforce to 1.3 Million". Focus Taiwan News Channel. 2010-08-19. Retrieved 2010-08-19.
  26. 1 2 3 "Suicides at Foxconn: Light and Death". The Economist. May 27, 2010.
  27. 1 2 "Foxconn Workers in China Say 'Meaningless' Life Sparks Suicides". BusinessWeek. June 2, 2010.
  28. ↑ "Apple, Dell, and HP comment on suicides as Foxconn CEO shows off the pool". Engadget. Retrieved 2012-02-10.
  29. ↑ "A Night at the Electronics Factory". The New York Times. June 19, 2010.
  30. ↑ "Apple CEO visits Foxconn's iPhone plant in China". reuters.com. Thomson Reuters. 12 Oct 2012. Retrieved 10 April 2016.
  31. ↑ "Global Distribution". Foxconn Technology Group.
  32. ↑ Fávaro, Tatiana (2011-04-24). "Filial no Brasil acusada de pressão no trabalho" [Subsidiary in Brazil accused of pressure at work] (in Portuguese). Retrieved 2011-06-06.
  33. 1 2 3 "Foxconn Says Looking at Investment Opportunities in Brazil". Reuters. April 13, 2011.
  34. ↑ "Foxconn to lay off 1,500 in Hungary as orders drop". Reuters. March 30, 2012.
  35. ↑ "Foxconn Turkey". foxconn.com. 2015-01-13.
  36. 1 2 "About Foxconn: Group Profile". Foxconn Technology Group.
  37. ↑ "Trade Union Leaders and Workers at Foxconn India Imprisoned". 2010-10-22. Retrieved 2010-11-04.
  38. ↑ "FIH Mobile to close Chennai plant on 24 December". Retrieved 5 January 2015.
  39. ↑ "Make in India: iPhone maker Foxconn in talks to build first Apple plant in India - The Economic Times". The Times Of India.
  40. ↑ Crabtree, James. "Foxconn to setup 12 factories in India". Financial TImes. Retrieved 13 July 2015.
  41. ↑ "International". mtsindia.in.
  42. ↑ "Sharp to transfer 3,000 overseas workers to Hon Hai". The Daily Yomiuri. August 22, 2012. Retrieved August 22, 2012.
  43. ↑ 柔古来富士康集团 低调办非正式剪彩 [Foxconn Group to do a low-key ribbon-cutting] (in Chinese). MCIL Multimedia Sdn Bhd. 2011-09-27. Retrieved 2012-02-16.
  44. ↑ Oleh Mahanum, Abdul Aziz (2011-09-03). "Hon Hai cadang bina 4 kilang di Malaysia" [Hon Hai proposed to build four plants in Malaysia] (in Malay). The New Straits Times Press (Malaysia). Retrieved 2012-02-16.
  45. ↑ Robinson-Avila, Kevin (December 9, 2011). "Foxconn spinoff effect has Santa Teresa flourishing". Business Weekly. Retrieved 2012-05-29.
  46. ↑ "Foxconn: Arson at Mexico Plant Work of Angry Ex-Employee". PC World. February 22, 2010.
  47. ↑ "Citigroup Likes Hon Hai's Purchase of Set-Top Box Plant". Taipei Times. July 20, 2011.
  48. ↑ "Sony sells LCD plant to Foxconn". Evertiq. September 1, 2009. Retrieved May 6, 2015.
  49. ↑ "Foxconn diversifies with stake purchase in SK C&C". South Korea News.Net. Retrieved July 2, 2014.
  50. ↑ "Foxconn set for US with $40M investment in Pennsylvania". CNET. CBS Interactive. Retrieved 5 January 2015.
  51. ↑ "Apple Supplier Foxconn to Invest Millions in Pennsylvania". Bloomberg.
  52. ↑ "Foxconn Making Acer Android Phones". Phandroid.com. 2009-12-22. Retrieved 2012-02-01.
  53. 1 2 "Foxconn Option for Henan's Migrating Millions: A New Factory in Zhengzhou. He Huifeng. South China Morning Post. 2010-09-15. p. 8.
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  55. ↑ "Cisco signs over Mexico manufacturing facility to Foxconn". ZDNet. 2011-07-18. Retrieved 2012-02-01.
  56. 1 2 Foxconn by the Numbers . Huffington Post. 2012-01-27.
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  58. ↑ Buetow, Mike (April 2005). "Foxconn, HP Extend Contract Relationship". Circuits Assembly. Vol. 16, Iss. 4; p. 10, 1 pgs.
  59. ↑ Kan, Michael (October 24, 2012). "Foxconn builds products for many vendors, but its mud sticks to Apple". Computerworld.com. Retrieved March 4, 2015.
  60. ↑ E.D. Kain. "Chinese Foxconn Workers Threaten Mass Suicide Over Xbox Pay Dispute". Forbes. Retrieved 2012-02-01.
  61. ↑ "Nintendo to probe Foxconn conditions: report". MarketWatch. Retrieved 2012-02-01.
  62. ↑ Duhigg, Charles; Barboza, David (2012-01-25). "In China, Human Costs Are Built Into an iPad". New York Times. Retrieved 2012-01-26.
  63. ↑ "Sony Sources Foxconn to Help Manufacture PS3". DailyTech. Retrieved 2012-02-01.
  64. ↑ "The Dilemma of Cheap Electronics". The New York Times. 2012-02-09. Retrieved 2012-02-10.
  65. ↑ Budi Putra (2006-10-05). "Foxconn to make smartphones for Vizio". SlashPhone. Retrieved 2012-02-01.
  66. ↑ "China's Xiaomi Technology to become Foxconn's major client: reports | Economics | FOCUS TAIWAN - CNA ENGLISH NEWS". Focustaiwan.tw. 2013-03-22. Retrieved 2013-08-25.
  67. ↑ Beckett, Lois (Jan 27, 2012). "By the Numbers: Life and Death at Foxconn". propublica.org. ProPublica. Retrieved 14 May 2014.
  68. 1 2 Mail Foreign Service (2006-08-18). "The Stark Reality of iPod's Chinese Factories". Daily Mail (London). Retrieved 2011-05-27.
  69. ↑ "Foxconn called to account for another employee suicide". WantChinaTimes.com. 26 November 2011. Retrieved 8 December 2012.
  70. ↑ Moore, Malcolm (2010-05-16). "What Has Triggered the Suicide Cluster at Foxconn?". The Daily Telegraph (London). Retrieved 2010-07-09.
  71. ↑ Macworld staff, Macworld. “Inside Apple's iPod factories.” June 12, 2006. Retrieved January 29, 2016.
  72. ↑ Xu, Kaibin (October 26, 2012). "An Ethical Stakeholder Approach to Crisis Communication: A Case Study of Foxconn's 2010 Employee Suicide Crisis". Springer.com. Springer Media. Retrieved November 16, 2010.
  73. ↑ "Moral Issues Behind iPhone and Its Makers". The New York Times 2012-03-28.
  74. 1 2 Williams, Matt (29 March 2012). "Foxconn audit finds illegal overtime and unpaid wages at Apple factory". guardian.co.uk (London: Guardian News and Media Ltd). Retrieved 2012-05-29.
  75. ↑ Bonnington, Christina, "Apple’s Foxconn Auditing Group ‘Surrounded With Controversy,’ Critics Say", Wired magazine, February 13, 2012
  76. ↑ For 2010 reports, see "Publications: 2010". Students and Scholars Against Corporate Misbehavior. Retrieved June 24, 2012.
    • For 2011 reports, see "Publications: 2011". Students and Scholars Against Corporate Misbehavior. Retrieved June 24, 2012.
    • For 2012 reports, see "Publications: 2012". Students and Scholars Against Corporate Misbehavior. Retrieved June 24, 2012.
  77. ↑ For report relying on 100 worker informants, see "WORKERS AS MACHINES: MILITARY MANAGEMENT IN FOXCONN" (PDF). Students and Scholars Against Corporate Misbehavior. 13 Oct 2010. Retrieved June 24, 2012.
  78. ↑ "Foxconn Workers Labor Under Guard After Riot Shuts Plant". bloomberg.com (Bloomberg). Sep 26, 2012. Retrieved November 21, 2012.
  79. ↑ 2,000 Foxconn staff riot at iPhone 5 'sweatshop' in China after 'guard beats up worker' | Mail Online. Dailymail.co.uk (2012-09-24). Retrieved on 2013-07-26.
  80. 1 2 3 Ben Blanchard, Mark Bendeich, Ron Popeski (Oct 17, 2012). "Foxconn says underage workers used in China plant". reuters.com (Thompson Reuters). Retrieved 2013-06-03.
  81. ↑ Ron Dicker (2012-10-15). "Zhang Tingzhen, Foxconn Employee Who Lost Half His Brain, Ordered To Leave Hospital (UPDATE)". The Huffington Post.
  82. ↑ Tan Ee Lyn (Oct 10, 2012). "Worker's injury casts harsh new light on Foxconn and China". Reuters.
  83. ↑ "ZHANG TINGZHEN, LE MARTYR DE FOXCONN". Paris Match.
  84. ↑ Tan Ee Lyn (2012-10-30). "Family Of Zhang Tingzhen, Brain-Damaged Foxconn Worker, Takes Company To Court". Reuters.
  85. ↑ http://www.cnet.com/news/riots-suicides-and-other-issues-in-foxconns-iphone-factories/. CNET. 2012-09-25.
  86. ↑ "Apple Confirms Death of iPhone Worker in China". CNET. 2009-07-21.
  87. ↑ "IPhone Maker in China Is Under Fire After a Suicide". The New York Times. 2009-07-26.
  88. ↑ Pomfret, James (2010-11-05). "Foxconn Worker Plunges to Death at China Plant: Report". Reuters.
  89. ↑
  90. ↑ "Foxconn To Raise Wages Again at China Plant". Reuters. 2010-10-01.
  91. ↑ Malone, Andrew; Jones, Richard (2010-12-06). "Revealed: Inside the Chinese Suicide Sweatshop Where Workers Toil in 34-Hour Shifts To Make Your iPod". Daily Mail (London). Retrieved 2011-10-07.

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