Foxconn

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Hon Hai Precision Industry Co., Ltd.
(trading as Foxconn)
Type Public
Traded as TWSE: 2317
SEHK: 2038
LSE: HHPD
NASDAQ: HNHPF
Industry Electronics manufacturing services
Founded 1974
Headquarters Tucheng District, New Taipei, Taiwan
Area served Global
Key people Terry Gou (Chairman and President)
Products Various
Revenue US$59.32 billion (2010)[1]
decrease 4.1% from 2008
Net income US$2.2 billion (2010)[1]
increase 31.1% from 2008
Employees 920,000+ (2010)[2]
Website 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) is a multinational electronics manufacturing company headquartered in Tucheng, New Taipei, Taiwan. It is the world's-largest maker of electronic components[3] including printed circuit boards.[4]

Foxconn clients include American, European and Japanese companies. Notable products which the company manufactures include the Amazon Kindle, iPad,[5] iPhone,[6] PlayStation 3, Wii and Xbox 360. Foxconn is the largest exporter in Greater China and the second-largest in the Czech Republic.[7]

Foxconn has been involved in several controversies – most relating to how it manages employees in China, where it is the largest private employer.[8]

Contents

[edit] History

Hon Hai Precision Industry Co., Ltd. was founded in 1974 as a manufacturer of electrical components (notably electrical connectors for computer components,[6] which found use in the Atari 2600).[9] Foxconn originated as a trade name of Hon Hai, later becoming a Hon Hai subsidiary.[6]

Hon Hai's first manufacturing plant in mainland China opened in Longhua, Shenzhen, in 1988.[6]

In 2011, Foxconn and Amazon formed a joint-design and manufacturing company, with the declared intention of producing an Amazon-branded smartphone sometime in 2012.[10]

[edit] Operations

Foxconn currently has factories in Asia, Europe and South America, which together assemble around 40 percent of consumer electronics products in the world.[11]

[edit] China

Foxconn has 13 factories in nine Chinese cities, more than in any other country.[12]

Foxconn's largest factory worldwide is in Longhua, Shenzhen, where hundreds of thousands of workers (varying counts include 230,000,[11] 300,000,[13] and 450,000[2]) are employed at the Longhua Science & Technology Park, a walled campus[6] sometimes referred to as "Foxconn City"[14] or "iPod City".[15] Covering about 1.16 square miles (3 square km),[16] it includes 15 factories,[14] worker dormitories, a swimming pool,[17] a fire brigade,[6] its own television network (Foxconn TV),[6] and a downtown complete with a grocery store, bank, restaurants, bookstore, and hospital.[6] While some workers live in surrounding towns and villages, others live and work inside the complex;[18] a quarter of the employees live in the dormitories, and many of them work 12-hour days for 6 days each week.[11]

Foxconn continues to expand and planned factory sites include at Chengdu in Sichuan province, Wuhan in Hubei province, and Zhengzhou in Henan province.[12]

Apple contracts with Chinese industry such as Foxconn because it has easy access to the Chinese supply chain[11] within a well developed industrial cluster.[19] In addition, employees at Chinese companies are thought to be more flexible, diligent, and skilled than American workers.[11]

[edit] Europe

A Foxconn factory in the Czech Republic

Foxconn currently has factories in Slovakia[8] and the Czech Republic.[7]

[edit] India

Foxconn has an operation in the Special Economic Zone of Chennai, Tamil Nadu.[20]

[edit] Mexico

Foxconn has a facility in San Jerónimo, Chihuahua which assembles computers,[21] and two facilities in Juárez  – a former Motorola production base which manufactures mobile phones,[22] and a set-top box factory acquired from Cisco Systems.[23] LCD televisions are also made in the country by Foxconn.[24]

[edit] Brazil

All existing and currently planned company facilities in South America are located in Brazil,[25] including mobile-phone factories in Manaus and Indaiatuba as well as production bases in Jundiai, Sorocaba, and Santa Rita do Sapucaí.[26] The company is considering more investments in Brazil.[8]

[edit] Major customers

Foxconn manufactures products for companies including:

(country of headquarters in parentheses)

[edit] Controversies

[edit] Allegations of employee mistreatment

Allegations of employee mistreatment have been made on a number of occasions. News reports highlight the long working hours,[14][16] discrimination against mainland Chinese workers by their Taiwanese co-workers,[40] and lack of working relationships at the company.[41]

In 2006, the Daily Mail accused it of abusive employment practices.[42] Although Foxconn was found to be compliant in the majority of areas when Apple audited the maker of its iPods and iPhones,[6] the audit did substantiate a few of the allegations.[43]

[edit] Suicides

Main article: Foxconn suicides

Sun Danyong, a 25-year-old male, committed suicide in July 2009 after reporting the loss of an iPhone 4[44] prototype in his possession.[45]

In reaction to a spate of worker suicides where fourteen died in 2010,[38] a report by twenty Chinese universities described Foxconn factories as labour camps and detailed widespread worker abuse and illegal overtime.[46] In response to the suicides, Foxconn installed suicide-prevention netting at some facilities,[42] and it promised to offer substantially higher wages at its Shenzhen production bases.[47] Workers were also forced to sign a legally binding document guaranteeing that they would not sue the company as a result of self-injury or suicide.[48]

[edit] Protests

In January 2012, 150 workers in Wuhan threatened to commit mass suicide because of worsening work conditions.[49] The employees had asked for a raise but were told they could either quit with compensation or keep their jobs with no raise. The employees quit, but did not receive their compensation.[50]

[edit] See also

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[edit] References

 This article uses bare URLs for citations. Please consider adding full citations so that the article remains verifiable. Several templates and the Reflinks tool are available to assist in formatting. (Reflinks documentation) (January 2012)
  1. ^ a b "Fortune Global 500 2010: The World's Biggest Companies – Hon Hai Precision Industry" Fortune. 2010.
  2. ^ a b "Foxcon Plans To Increase China Workforce to 1.3 Million". Focus Taiwan News Channel. 2010-8-19. http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?ID=201008190012&Type=aECO. Retrieved 2010-8-19. 
  3. ^
  4. ^ Buetow, Mike (March 2010). "The Trials of 2009". circuitsassembly.com.
  5. ^ "Apple Adding More iPad Production Lines To Meet Holiday and 2011 Demand". San Francisco Chronicle. 2010-11-23.
  6. ^ a b c d e f g h i "The Forbidden City of Terry Gou". The Wall Street Journal. 2007-08-11.
  7. ^ a b "About Foxconn: Group Profile". Foxconn Technology Group.
  8. ^ a b c "Foxconn Says Looking at Investment Opportunities in Brazil". Reuters. 2011-04-13.
  9. ^ Balfour, Frederik; Culpan, Tim (2010-09-09)."Everything Is Made by Foxconn in Future Evoked by Gou's Empire". Bloomberg News.
  10. ^ Clarke, Peter (2011-11-21)."Report: Amazon Asks Foxconn for Smartphone Help". EE Times. Retrieved 2011-11-21.
  11. ^ a b c d e Duhigg, Charles; Keith Bradsher (January 21, 2012). "How the U.S. Lost Out on iPhone Work". New York Times. http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html. Retrieved January 24, 2012. 
  12. ^ a b "Struggle for Foxconn Girl Who Wanted To Die". Mimi Lau in Wuhan, Hubei. South China Morning Post. 2010-12-15.
  13. ^ "Firm Shaken by Suicides". Los Angeles Times. 2010-05-26.
  14. ^ a b c "Suicides at Foxconn: Light and Death". The Economist. 2010-05-27.
  15. ^ *"iPod City: Apple Criticized for Factory Conditions". arstechnica.com. 2006-06-12.
  16. ^ a b "Foxconn Workers in China Say 'Meaningless' Life Sparks Suicides". BusinessWeek. 2010-06-02.
  17. ^ http://www.engadget.com/2010/05/26/apple-and-dell-comment-as-foxconn-ceo-shows-off-the-pool/
  18. ^ "A Night at the Electronics Factory". The New York Times. 2010-06-19.
  19. ^ Krugman, Paul (January 24, 2012). "Chinese Manufacturing and the Auto Bailout". New York Times. http://krugman.blogs.nytimes.com/2012/01/24/chinese-manufacturing-and-the-auto-bailout/. Retrieved January 27, 2012. 
  20. ^ "Trade Union Leaders and Workers at Foxconn India Imprisoned". 2010-10-22. http://www.ituc-csi.org/trade-union-leaders-and-workers-at,7862.html?lang=en. Retrieved 2010-11-04. 
  21. ^ Business Weekly. http://www.bizjournals.com/albuquerque/print-edition/2011/12/09/foxconn-spinoff-effect-has-santa.html?page=all. 
  22. ^ "Foxconn: Arson at Mexico Plant Work of Angry Ex-Employee". PC World. 2010-02-22.
  23. ^ "Citigroup Likes Hon Hai's Purchase of Set-Top Box Plant". Taipei Times. 2011-07-20.
  24. ^ "Foxconn Denies Plans To Acquire Sony LCD TV Factory in Spain". Ninelu Tu; Adam Hwang. DigiTimes. 2010-07-09.
  25. ^ "Global Distribution". Foxconn Technology Group.
  26. ^[clarification needed] Fávaro, Tatiana (2011-04-24). "Filial no Brasil acusada de pressão no trabalho" (in Portuguese). http://www.estadao.com.br/estadaodehoje/20110424/not_imp710000,0.php. Retrieved 2011-06-06. 
  27. ^ "Foxconn Making Acer Android Phones". Phandroid.com. 2009-12-22. http://phandroid.com/2009/12/22/foxconn-making-acer-android-phones/. Retrieved 2012-02-01. 
  28. ^ "Kindle Screen Maker Will Increase Capacity To Meet Demand". Computer World. 2010-07-28.
  29. ^ a b "Foxconn Option for Henan's Migrating Millions: A New Factory in Zhengzhou. He Huifeng. South China Morning Post. 2010-09-15. p. 8.
  30. ^ "Cisco signs over Mexico manufacturing facility to Foxconn". ZDNet. 2011-07-18. http://www.zdnet.com/blog/btl/cisco-signs-over-mexico-manufacturing-facility-to-foxconn/52610. Retrieved 2012-02-01. 
  31. ^ a b Foxconn by the Numbers . Huffington Post. 2012-01-27.
  32. ^ Buetow, Mike (April 2005). "Foxconn, HP Extend Contract Relationship". Circuits Assembly. Vol. 16, Iss. 4; p. 10, 1 pgs.
  33. ^ "Intel/Foxconn alliance could cripple Asus". The Inquirer. http://www.theinquirer.net/inquirer/opinion/1405863/intel-foxconn-alliance-cripple-asus. Retrieved 2012-02-01. 
  34. ^ E.D. Kain. "Chinese Foxconn Workers Threaten Mass Suicide Over Xbox Pay Dispute". Forbes. http://www.forbes.com/sites/erikkain/2012/01/12/chinese-foxconn-workers-threaten-mass-suicide-over-xbox-pay-dispute/. Retrieved 2012-02-01. 
  35. ^ "Nintendo to probe Foxconn conditions: report". MarketWatch. http://www.marketwatch.com/story/nintendo-to-probe-foxconn-conditions-report-2010-05-28. Retrieved 2012-02-01. 
  36. ^ "In China, Human Costs Are Built Into an iPad". New York Times. 2012-01-25. http://www.nytimes.com/2012/01/26/business/ieconomy-apples-ipad-and-the-human-costs-for-workers-in-china.html?_r=1&pagewanted=all. 
  37. ^ "Sony Sources Foxconn to Help Manufacture PS3". DailyTech. http://www.dailytech.com/Sony+Sources+Foxconn+to+Help+Manufacture+PS3/article8894.htm. Retrieved 2012-02-01. 
  38. ^ a b Pomfret, James (2010-11-05). "Foxconn Worker Plunges to Death at China Plant: Report". Reuters. http://www.reuters.com/article/idUSTRE6A41M920101105. 
  39. ^ Budi Putra (2006-10-05). "Foxconn to make smartphones for Vizio". SlashPhone. http://www.slashphone.com/foxconn-to-make-smartphones-for-vizio-0414711. Retrieved 2012-02-01. 
  40. ^ 富士康管治双重标准 员工有冤上诉无门.
  41. ^ Moore, Malcolm (2010-05-16). "What Has Triggered the Suicide Cluster at Foxconn?". The Daily Telegraph (London). http://blogs.telegraph.co.uk/news/malcolmmoore/100039883/what-has-triggered-the-suicide-cluster-at-foxconn/. Retrieved 2010-07-09. 
  42. ^ a b Mail Foreign Service (2006-08-18). "The Stark Reality of iPod's Chinese Cactories". Daily Mail (London). http://www.dailymail.co.uk/news/article-401234/The-stark-reality-iPods-Chinese-factories.html. Retrieved 2011-05-27. 
  43. ^ "Inside Apple's iPod Factories". MacWorld UK. 2006-06-12.
  44. ^ "Apple Confirms Death of iPhone Worker in China". CNET. 2009-07-21.
  45. ^ "IPhone Maker in China Is Under Fire After a Suicide". The New York Times. 2009-07-26.
  46. ^
  47. ^ "Foxconn To Raise Wages Again at China Plant". Reuters. 2010-10-01.
  48. ^ 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). http://www.dailymail.co.uk/news/article-1285980/Revealed-Inside-Chinese-suicide-sweatshop-workers-toil-34-hour-shifts-make-iPod.html. Retrieved 2011-10-07. 
  49. ^ "'Mass Suicide' Protest at Apple Manufacturer Foxconn Factory". The Daily Telegraph.
  50. ^ "Indignant Workers Threaten Suicide at Foxconn Park in Wuhan". Want China Times. 2012-01-10.

[edit] Further reading

[edit] External links

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