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Hon Hai Precision Industry Co., Ltd.
Company typePublic
TWSE: 2317
SEHK: 2038
LSE: HHPD
Nasdaq: HNHPF
IndustryElectronics manufacturing services
Founded1974
Headquarters
Tucheng District, New Taipei City
,
Taiwan (Republic of China)
Area served
Global
Key people
Terry Gou (Chairman and President)
ProductsVarious
RevenueUS$ 110 billion (2011)[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

The Foxconn Technology Group (traditional Chinese: 富士康科技集團; simplified Chinese: 富士康科技集团) is a multinational business group anchored by the Hon Hai Precision Industry Co., Ltd. (Chinese: 鴻海精密工業股份有限公司; LSE: HHPD), a Taiwan-registered corporation headquartered in Tucheng, Taiwan. Foxconn is the world's largest maker of electronic components[3] including printed circuit boards.[4]

Due to its dominance in this specialized outsourcing sector, it is popular with European, Japanese and American companies wishing to reduce labor costs without sacrificing quality. Better known products Foxconn manufactures include the iPhone[5] and the iPad.[6] It is the largest exporter in Greater China and the second largest exporter 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]

History

Hon Hai Precision Industry Co Ltd was founded in 1974 as a manufacturer of electrical components (notably electrical connectors for computer components,[5] which found use in the Atari 2600,[9] etc.) by Terry Gou.[5] Foxconn was first a trade name of Hon Hai and is now named a Hon Hai subsidiary.[5]

Foxconn City

A Foxconn factory in the Czech Republic

Hon Hai's first manufacturing plant in Mainland China opened in Longhua, Shenzhen in 1988.[5] Now the company's largest operation, 300,000[10] to 450,000[2] workers are employed in Shenzhen at the Longhua Science & Technology Park, a cramped, walled campus[5] sometimes referred to as "Foxconn City"[11] or "iPod City".[12] Covering about 1.16 square miles (3 square km),[13] it includes 15 factories,[11] worker dormitories, a swimming pool,[14] a fire brigade,[5] and a downtown complete with a grocery store, bank, restaurants, bookstore, and hospital.[5] While some workers live in surrounding towns and villages, others live and work inside the complex,[15] which broadcasts its own television network, Foxconn TV.[5]

Clients

Foxconn makes consumer electronics for a number of well-known companies, including:

In 2011, Amazon and Foxconn formed a joint-design manufacturing company. The move was meant to produce an Amazon branded smartphone sometime in 2012.[17]

Controversies

Allegations of employee mistreatment

Allegations of employee mistreatment have been made on a number of occasions. News reports highlight the long working hours,[11][13] discrimination of mainland Chinese workers by their Taiwanese co-workers,[21] and lack of working relationships at the company.[22]

Chen Long, a 23 year old assembly worker, died from overwork. He worked 60 hours a week and was often encouraged by his parents to resign from Foxconn, alarmed with the epidemic of suicides and general misfortune surrounding the company. Chen Long was also required to work increasing increments over a year and once fainted in the street months prior to his death. He joined the company in 2010.[23]

In 2006 the Daily Mail 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,[5] the audit did substantiate a few of the allegations.[25]

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[26] prototype in his possession.[27]

In reaction to a spate of worker suicides where fourteen died in 2010,[20] a report by 20 Chinese universities described Foxconn factories as labour camps and detailed widespread worker abuse and illegal overtime.[28] 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.[29] Workers were also forced to sign a legally binding document guaranteeing that they would not kill themselves.[30]

Accident

Chengdu

Main article: 2011 Chengdu Foxconn explosion incident

On May 20, 2011 an explosion and fire broke out at a factory in Chengdu. The incident caused three deaths and injured 15 workers, and affected the iPad 2 assembly line.

Shandong

A fire broke out at the Foxconn Yantai complex in Shandong province at around 10am on September 27, 2011. No casualties were reported and production was not impacted. The fire occurred at the Yantai economic technology development zone where nearly 80,000 worked.[31][32] The fire started due to improper operation of workmanship with color paint chemicals.[33]

Production bases

Foxconn factories, making consumer electronics, are scattered throughout the world.

China

Foxconn has 13 factories in nine cities, more than in any other country.[34] Planned factories include sites at Chengdu in Sichuan province, Wuhan in Hubei province, and Zhengzhou in Henan province.[34]

Europe

It has factories in Slovakia,[8] Poland[8] and Czech Republic.[7]

India

The company has an operation in the Special Economic Zone of Chennai, Tamil Nadu.[35]

Mexico

Facilities in Mexico include a site in San Jerónimo, Chihuahua, which assembles computers,[citation needed] and two Juárez facilities–a former Motorola production base that makes mobile phones,[36] and a set-top box factory purchased from Cisco Systems.[37] LCD televisions are also made in the country by Foxconn.[38]

Brazil

All existing and currently planned Foxconn facilities in the South American continent are located in Brazil,[39] including mobile phone factories in Manaus and Indaiatuba as well as production bases in Jundiai, Sorocaba, and Santa Rita do Sapucaí.[40] The company is considering more investments in Brazil.[8]

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. ^ a b c d e f g h i j The Forbidden City of Terry Gou, The Wall Street Journal, 11 August 2007
  6. ^ Apple Adding More iPad Production Lines To Meet Holiday And 2011 Demand sfgate.com, Tuesday, November 23, 2010
  7. ^ a b About Foxconn: Group Profile Foxconn Technology Group official site
  8. ^ a b c d Foxconn says looking at investment opportunities in Brazil reuters.com, Wed Apr 13, 2011 8:29am EDT
  9. ^ Everything Is Made by Foxconn in Future Evoked by Gou's Empire bloomberg.com, Sep 9, 2010 2:00 PM PT
  10. ^ Firm shaken by suicides latimes.com, May 26, 2010
  11. ^ a b c Suicides at Foxconn: Light and Death economist.com, May 27, 2010
  12. ^
  13. ^ a b Foxconn Workers in China Say ‘Meaningless’ Life Sparks Suicides businessweek.com, June 02, 2010, 8:00 PM EDT
  14. ^ http://www.engadget.com/2010/05/26/apple-and-dell-comment-as-foxconn-ceo-shows-off-the-pool/
  15. ^ A Night at the Electronics Factory nytime.com, June 19, 2010
  16. ^ Kindle screen maker will increase capacity to meet demand, Computer World, July 28, 2010
  17. ^ Peter Clarke, EE Times. "Report: Amazon asks Foxconn for smartphone help." November 21, 2011. Retrieved November 21, 2011.
  18. ^ 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
  19. ^ Mike Buetow. Foxconn, HP Extend Contract Relationship. Circuits Assembly. San Francisco: Apr 2005. Vol. 16, Iss. 4; pg. 10, 1 pgs
  20. ^ a b Pomfret, James (2010-11-05). "Foxconn worker plunges to death at China plant: report". Reuters.
  21. ^ 富士康管治双重标准 员工有冤上诉无门
  22. ^ Moore, Malcolm (2010-05-16). "What has triggered the suicide cluster at Foxconn? – Telegraph Blogs". London: Blogs.telegraph.co.uk. Retrieved 2010-07-09.
  23. ^ http://micgadget.com/13379/foxconn-worker-died-in-the-bath-after-working-60-hours-a-week/
  24. ^ a b Mail Foreign Service (2006-08-18). "The stark reality of iPod's Chinese factories". London: Dailymail.co.uk. Retrieved 2011-05-27.
  25. ^ "Inside Apple's iPod Factories", MacWorld website, June 12, 2006
  26. ^ Apple confirms death of iPhone worker in China cnet.com, July 21, 2009 9:28 AM PDT
  27. ^ IPhone Maker in China Is Under Fire After a Suicide nytimes.com, July 26, 2009
  28. ^
  29. ^ Foxconn to raise wages again at China plant reuters.com, Fri Oct 1, 2010 8:42am EDT
  30. ^ "Revealed: Inside the Chinese suicide sweatshop where workers toil in 34-hour shifts to make your iPod | Mail Online". Dailymail.co.uk. 2010-12-06. Retrieved 2011-10-07.
  31. ^ [1]
  32. ^ [2]
  33. ^ [3]
  34. ^ a b Struggle for Foxconn girl who wanted to die. Mimi Lau in Wuhan, Hubei. South China Morning Post. Hong Kong: Dec 15, 2010.
  35. ^ "Trade union leaders and workers at Foxconn India imprisoned". 22 October 2010. Retrieved 4 November 2010.
  36. ^ Foxconn: Arson at Mexico Plant Work of Angry Ex-employee pcworld.com, Feb 22, 2010 7:50 pm
  37. ^ Citigroup likes Hon Hai’s purchase of set-top box plant Taipei Times, Wed, Jul 20, 2011
  38. ^ Foxconn denies plans to acquire Sony LCD TV factory in Spain Ninelu Tu, Adam Hwang. digitimes.com, Friday 9 July 2010
  39. ^ Global Distribution Foxconn Technology Group
  40. ^ Fávaro, Tatiana (April 24, 2011), Filial no Brasil acusada de pressão no trabalho (in Portuguese), retrieved June 6, 2011
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