A Foxconn factory in the Czech Republic
|Foxconn Technology Group 富士康|
|Traded as||TWSE: 2317|
|Founded||February 20, 1974(as Hon Hai Precision Industry Co., Ltd.)|
|Headquarters||Tucheng District, New Taipei, Republic of China (Taiwan)|
(Chairman and President)
|Products||Electronics, electronic components, PCBs, PCB components, computer chips.|
|Services||Electronics manufacturing services|
|Revenue||US$ 131.82 billion (2016)|
|US$ 5.99 billion (2016)|
|US$ 4.58 billion (2016)|
|Total assets||US$ 58.4 billion (2016)|
|Total equity||US$ 34.29 billion (2016)|
Number of employees
|1.3 million (2015)|
FIH Mobile Ltd.
|Literal meaning||Hon Hai Precision Industry Co., Ltd.|
|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 Tucheng, New Taipei, Republic of China (Taiwan). Foxconn is the world's largest contract electronics manufacturer and the fourth-largest information technology company by revenue. The company is the largest private employer in China and one of the largest employers worldwide. Its founder and chairman is Terry Gou.
Foxconn is primarily a contract manufacturer; clients include major American, Canadian, Chinese, Finnish, and Japanese electronics and information technology companies. Notable customers and products the company manufactures for include BlackBerry, iPad, iPhone, iPod, Kindle, Nintendo 3DS, Nokia, PlayStation 3, PlayStation 4, Wii U, and Xbox One.
Foxconn has been involved in several controversies, including a spate of suicides in 2010 at its Chinese factories, blamed on its treatment of employees and working conditions.
- 1 History
- 2 International operations
- 3 Major customers
- 4 FIH Mobile
- 5 Controversies
- 6 See also
- 7 References
- 8 Further reading
- 9 External links
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, which found use in the Atari 2600). Foxconn was originally a trade name of Hon Hai, and a subsidiary later received the name. Hon Hai's first manufacturing plant in mainland China opened in Longhua Town, Shenzhen, in 1988.
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 LCDs produced at Sharp's plant in Sakai, Japan.
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. However, hours later the deal was put on hold after "contingent liabilities... worth perhaps billions of dollars...came to light." A joint press statement released on 30 March 2016 finalised the deal but at a price significantly lower than a month earlier.
Foxconn has factories in Asia, Brazil, Europe, and Mexico that, as of 2012, manufacture approximately 40 percent of all consumer electronics products sold.
Foxconn has 12 factories in nine Chinese cities—more than in any other country.
Foxconn's largest factory worldwide is in Longhua Town, Shenzhen, where hundreds of thousands of workers (varying counts include 230,000, 300,000, and 450,000) are employed at the Longhua Science & Technology Park, a walled campus sometimes referred to as “Foxconn City”. Covering about 1.16 square miles (3 square km), it includes 15 factories, worker dormitories, 4 swimming pools, a fire brigade, its own television network (Foxconn TV), and a city centre with a grocery store, bank, restaurants, bookstore, and hospital. While some workers live in surrounding towns and villages, others live and work inside the complex; 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.
All company facilities in South America are located in Brazil, and these include mobile phone factories in Manaus and Indaiatuba as well as production bases in Jundiai, Sorocaba, and Santa Rita do Sapucaí. The company is considering more investments in Brazil.
Foxconn has factories in Hungary, Slovakia, Turkey and the Czech Republic. Foxconn factories are strategically located in Europe to ensure rapid fulfillment for its customers. It is the second-largest exporter in the Czech Republic.
Foxconn has had operational units since 2006 in the Special Economic Zone of Chennai, Tamil Nadu. This unit closed as of December 24, 2014. This affected 25,000 employees. As of mid 2015, Foxconn Technology was in talks to manufacture Apple's iPhone in India. In 2015, Foxconn announced it would be setting up twelve factories in India and would create around one million jobs. 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[clarification needed] for more efficient expansion of Foxconn in the country. In August 2015, Foxconn invested in Snapdeal. On August 8, 2015, Foxconn signed a MOU with the Government Of Maharashtra to set up an electronics manufacturing plant in Maharashtra with the investment of $5 billion within a 5-year period. Recently, it started manufacturing products for Xiaomi, OnePlus and Gionee.
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.
Foxconn likely acquired these plants when it purchased Sharp in 2016.
Foxconn has a facility in San Jerónimo, Chihuahua, that assembles computers, and two facilities in Juárez – a former Motorola production base that manufactures mobile phones, and a set-top box factory acquired from Cisco Systems. LCD televisions are also made in the country by Foxconn, in a plant acquired from Sony.
The deal is being criticized for the $3 billion in tax-payer funded incentives given to Foxconn. The state of Wisconsin would have to pay a subsidy to Foxconn of up to $250 million each year for fifteen years. An analysis by the Wisconsin State Legislature's nonpartisan budget office determined that state taxpayers would recoup their investment in 2043.
In return, the deal would return an estimated $181 million each year. This loss, according to economics professor Michael Hicks, amounts to a payment of $1,200 from each household to Foxconn.
Foxconn would also be exempt from an environmental impact statement and be able to avoid several other environmental protection rules that other companies must comply with.
Major customers of Foxconn include or have included:
- Acer Inc. (ROC)
- Amazon.com (United States)
- Apple Inc. (United States)
- BlackBerry Ltd. (Canada)
- Cisco (United States)
- Dell (United States)
- Google (United States)
- Hewlett-Packard (United States)
- Huawei (PRC)
- InFocus (United States)
- Intel (United States)
- Microsoft Corp. (United States)
- Motorola Mobility (United States)
- Nintendo (Japan)
- HMD Global (Finland)
- Sony (Japan)
- Toshiba (Japan)
- Vizio (United States)
- Xiaomi (PRC)
- Nextbit Robin (United States)
(headquarters location in parentheses)
On May 18, 2016, FIH Mobile announced the purchase of Microsoft Mobile's feature phone business. Microsoft Mobile Vietnam is also part of the sale to FIH Mobile, which consists of the Hanoi, Vietnam manufacturing facility. The rest of the business has been sold to a new Finland-based company HMD Global, who started developing and selling new Nokia-branded devices from early 2017. The total sale to both companies amounted to US$350 million. FIH Mobile is now manufacturing new Nokia-branded devices developed by HMD.
Foxconn has been involved in several controversies relating to employee grievances or treatment. Foxconn has more than a million employees. In China, it employs more people than any other private company as of 2011.
Allegations of poor working conditions have been made on several occasions. News reports highlight the long working hours, discrimination against mainland Chinese workers by their Taiwanese co-workers, and lack of working relationships at the company. 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, the audit did substantiate several of the allegations. 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".
Concerns increased in early 2012 due to an article published in The New York Times. 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.
A Hong Kong non-profit organisation, Students and Scholars Against Corporate Misbehavior, has written numerous negative reports on Foxconn's treatment of its employees. 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. The Fair Labor Association audit in 2012 used interviews with 35,000 Foxconn employees.
In January 2012, about 150 Foxconn employees threatened to commit mass-suicide in protest of their working conditions. In September 2012, a fight at worker dormitories in Taiyuan, Shanxi, escalated into a riot involving 2,000 people and was quelled by security.
In October 2012, the company admitted that 14-year-old children had worked for a short time at a facility in Yantai, Shandong Province. Foxconn said that the workers involved were part of an internship program. Individuals as young as 16 can legally work in China.
Also in October 2012, a young worker, Zhang Tingzhen, was threatened to have Hon-Hai medical support canceled when doctors protested against moving him ("Zhang’s doctors fear he is at risk of a brain hemorrhage en route") for treatment in Huizhou from the hospital in Shenzhen. His doctors did "surgery to remove nearly half his brain, [after which] he lost his memory and can neither speak, walk" after a factory accident where he suffered an electrical shock and fell. 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.
In November 2017, Foxconn announced that it has stopped the interns' illegal overtime work at its iPhone X factory in Henan province, China.
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.
In reaction to a spate of worker suicides in which 14 people died in 2010, a report from 20 Chinese universities described Foxconn factories as labor camps and detailed widespread worker abuse and illegal overtime. In response, Foxconn installed suicide-prevention netting at the base of buildings in some facilities, and it promised to offer substantially higher wages at its Shenzhen production bases. Workers were also forced to sign a legally binding document guaranteeing that neither they nor their descendants would sue the company as a result of unexpected death, self-injury or suicide.
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