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Foxconn

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Hon Hai Precision Industry Co., Ltd.
Company typePublic
TWSE: 2317
SEHK: 2038
IndustryElectronics manufacturing services
Founded1974
Headquarters
Tucheng District, New Taipei City
,
Taiwan
Area served
Global
Key people
Terry Gou (Chairman and President)
ProductsVarious
RevenueUS$59.3 billion (2010)[1]
Decrease 4.1% from 2008
US$2.2 billion (2010)[1]
Increase 31.1% from 2008
Number of employees
920,000+ (2010)[2]
Websitefoxconn.com

Foxconn International Holdings Ltd (TWSE: 2317, SEHK: 2038) (traditional Chinese: 富士康科技集團; simplified Chinese: 富士康科技集团; pinyin: Fùshìkāng Kējì Jítuán) is a multinational subsidiary of Hon Hai Precision Industry Co Ltd (LSE: HHPD) (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; pinyin: Hónghǎi Jīngmì Gōngyè Gǔfèn Yǒuxiàngōngsī), a Taiwanese company that is the world's largest maker of electronic components[3] including printed circuit boards.[4]

A large, secretive[5][6][7] contract manufacturer, some of the most renowned products Foxconn makes include the iPod,[7][8] iPad,[9] and the iPhone.[7][10]

Foxconn has been involved in several controversies, most relating to how it manages employees.

History

Hon Hai Precision Industry Co Ltd was founded in 1974 as a manufacturer of electrical components (notably electrical connectors for computer components[7] -- which found use in the Atari 2600,[11] etc.) by Terry Gou.[7] Foxconn was first a trade name of Hon Hai before becoming a subsidiary of the company in 2000.[7]

Foxconn City

A Foxconn factory in the Czech Republic

Hon Hai's first manufacturing plant in mainland China opened in Shenzhen in 1988.[7] Now the company's largest operation, 300,000[12][13] to 450,000[2] workers are employed at the Longhua Science & Technology Park, a cramped, walled campus[14][7] sometimes referred to as "Foxconn City"[6] or "iPod City".[15] Covering about 1.16 square miles (3 square km),[16] it includes 15 factories,[6] worker dormitories, a fire brigade,[7] as well as a downtown complete 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,[17] which broadcasts its own television network, Foxconn TV.[7]

Activities

A planned acquisition of majority ownership in a Hitachi liquid crystal display production based in Japan means Foxconn will greatly increase its access to small and medium-sized LCD screens.[18]

Clients

Foxconn makes consumer electronics for a number of famous-name companies. The following is an incomplete list.

Controversies

This major manufacturer sees public scrutiny every day.

Allegations of employee mistreatment

Allegations of employee mistreatment have been made on a number of occasions. News reports highlight the long working hours,[6][16] discrimination of mainland Chinese workers by their Taiwanese co-workers,[22] and lack of working relationships at the company.[23]

In 2006 a UK newspaper accused it of abusive employment practices.[24] Although Foxconn was found to be compliant in the majority of areas when Apple audited the maker of its iPods and iPhones,[7] the audit did substantiate a few of the allegations.[8]

2010 suicides

Main article: 2010 Foxconn suicides

In October, 2010, a report by 20 Chinese universities described Foxconn factories as labour camps and detailed widespread worker abuse and illegal overtime.[25]

The report was a huge reaction to a spate of worker suicides where fourteen died in 2010.[20]

In response to the suicides, Foxconn installed suicide-prevention netting at some facilities,[24] and it promised to offer substantially higher wages at its Shenzhen production bases.[10][16][26]

Missing iPhone death

Sun Danyong, a 25-year-old male, committed suicide in July, 2009, after reporting the loss of an iPhone 4[27] prototype in his possession.[13]

Imprisoned Indian workers

In October, 2010, over 300 employees of an Indian operation in the Special Economic Zone of Chennai were arrested and jailed by Indian authorities for taking part in a strike.[28]

All but a dozen of the arrested were soon granted bail.[28]

LCD Price Fixing

In December, 2010, Chimei Innolux, a maker of LCD screens in which Foxconn has 24% ownership,[29] was fined by the EU for price fixing.[30]

Production bases

Most Foxconn factories are inside China.

Mainland China

Foxconn has 12 mainland factories in nine cities.[31] Planned factories include sites at Chengdu in Sichuan province, Wuhan in Hubei province, and Zhengzhou in Henan province.[31]

Indian Subcontinent

The company has an operation in the Special Economic Zone of Chennai, Tamil Nadu.[28]

See also

References

  1. ^ a b "Fortune Global 500 2010: The World's Biggest Companies - Hon Hai Precision Industry", Fortune, 2010
  2. ^ a b "Foxconn plans to increase China workforce to 1.3 million". Focus Taiwan News Channel. 2010-08-19. Retrieved 2010-08-19.
  3. ^
  4. ^ Mike Buetow, "The Trials of 2009," Circuits Assembly, March 2010
  5. ^ "For Apple suppliers, loose lips can sink contracts" Reuters, Wed Feb 17, 2010]
  6. ^ a b c d Suicides at Foxconn: Light and Death economist.com, May 27, 2010
  7. ^ a b c d e f g h i j k l m The Forbidden City of Terry Gou, The Wall Street Journal, 11 August 2007
  8. ^ a b "Inside Apple's iPod Factories", MacWorld website, June 12, 2006
  9. ^ Apple Adding More iPad Production Lines To Meet Holiday And 2011 Demand sfgate.com, Tuesday, November 23, 2010
  10. ^ a b Foxconn suspends operation at a facility in India reuters.com, Mon Jul 26, 2010 9:12pm EDT
  11. ^ Everything Is Made by Foxconn in Future Evoked by Gou's Empire bloomberg.com, Sep 9, 2010 2:00 PM PT
  12. ^ Firm shaken by suicides latimes.com, May 26, 2010
  13. ^ a b IPhone Maker in China Is Under Fire After a Suicide nytimes.com, July 26, 2009
  14. ^
  15. ^
  16. ^ a b c Foxconn Workers in China Say ‘Meaningless’ Life Sparks Suicides businessweek.com, June 02, 2010, 8:00 PM EDT
  17. ^ A Night at the Electronics Factory nytime.com, June 19, 2010
  18. ^ Foxconn to invest $1.2 billion in Hitachi LCD unit peopledaily.com.cn, December 28, 2010
  19. ^ a b Foxconn option for Henan's migrating millions: A new factory in Zhengzhou. He Huifeng. South China Morning Post. Hong Kong: Sep 15, 2010. pg. 8
  20. ^ a b c d Pomfret, James (2010-11-05). "Foxconn worker plunges to death at China plant: report". Reuters.
  21. ^ Mike Buetow. Foxconn, HP Extend Contract Relationship. Circuits Assembly. San Francisco: Apr 2005. Vol. 16, Iss. 4; pg. 10, 1 pgs
  22. ^ 富士康管治双重标准 员工有冤上诉无门
  23. ^ Moore, Malcolm (2010-05-16). "What has triggered the suicide cluster at Foxconn? – Telegraph Blogs". London: Blogs.telegraph.co.uk. Retrieved 2010-07-09.
  24. ^ a b Mail Foreign Service (2010-05-28). "China Foxconn iPhone factory in crisis after 13th suicide bid by employee | Mail Online". London: Dailymail.co.uk. Retrieved 2010-05-30.
  25. ^
  26. ^
  27. ^ Apple confirms death of iPhone worker in China cnet.com, July 21, 2009 9:28 AM PDT
  28. ^ a b c "Trade union leaders and workers at Foxconn India imprisoned". 22 October 2010. Retrieved 4 November 2010.
  29. ^ "Foxconn's Innolux to acquire Chi Mei for $5 billion". Market Watch. 2009-11-14. Retrieved 2010-12-11.
  30. ^
  31. ^ a b Struggle for Foxconn girl who wanted to die. Mimi Lau in Wuhan, Hubei. South China Morning Post. Hong Kong: Dec 15, 2010.
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