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Foxconn Information

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][4]

Foxconn is primarily an original design manufacturer and its clients include American, European and Japanese companies. Notable products which the company manufactures include the iPad,[5] iPhone,[6] Kindle, PlayStation 3, Wii and Xbox 360. It is the largest exporter in Greater China and the largest private-sector employer in China.[7][8]

Foxconn has been involved in several controversies, mostly relating to how it manages employees in China, where it is the largest private employer.[9] In 2012, the Fair Labor Association was hired by Apple to audit working conditions at Foxconn.[10]

Contents

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).[11] Foxconn originated as a trade name of Hon Hai, later becoming a Hon Hai subsidiary.[6]

In 2001 Intel concentrated on its core competency of chip making and began using Chinese contract manufacturers such as Foxconn to make Intel-branded motherboards.[12] Hon Hai's first manufacturing plant in mainland China opened in Longhua, Shenzhen, in 1988.[6]

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

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.[14]

Operations

Foxconn has factories in Asia, Europe and Latin America, which together assemble around 40 percent of consumer electronics products in the world.[15]

China

Workers at a Foxconn factory in Shenzhen

Foxconn has 13 factories in nine Chinese cities, more than in any other country.[16]

Foxconn's largest factory worldwide is in Longhua, Shenzhen, where hundreds of thousands of workers (varying counts include 230,000,[15] 300,000,[17] and 450,000[18]) are employed at the Longhua Science & Technology Park, a walled campus[6] sometimes referred to as "Foxconn City"[19] or "iPod City".[20] Covering about 1.16 square miles (3 square km),[21] it includes 15 factories,[19] worker dormitories, a swimming pool,[22] a fire brigade,[6] its own television network (Foxconn TV),[6] and a city centre 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;[23] a quarter of the employees live in the dormitories, and many of them work 12-hour days for 6 days each week.[15]

Another of Foxconn's factory 'cites' is Zhengzhou Technology Park in Henan province where it is reported 120,000 employees work. [24]

Foxconn continues to expand and planned factory sites include at Chengdu in Sichuan province and Wuhan in Hubei province.[16]

Apple contracts with Chinese industry such as Foxconn because it has easy access to the Chinese supply chain[15] within a well developed industrial cluster.[25] In addition, employees at overseas companies are thought to be more flexible, diligent, and skilled than American workers.[15]

Brazil

All company facilities in South America are located in Brazil,[26] including mobile-phone factories in Manaus and Indaiatuba as well as production bases in Jundiai, Sorocaba, and Santa Rita do Sapucaí.[27] The company is considering more investments in Brazil.[9]

Europe

A Foxconn factory in the Czech Republic

Foxconn has factories in Hungary[28], Poland[9], Slovakia[9], and the Czech Republic.[8] It is the second-largest exporter in the Czech Republic.[8]

India

Foxconn has an operation in the Special Economic Zone of Chennai, Tamil Nadu.[29]

Malaysia

As of 2011, Foxconn had at least one factory in Johor state,[30] possibly at Kulaijaya, where it is developing an industrial park that will include four factories once completed.[31]

Mexico

Foxconn has a facility in San Jerónimo, Chihuahua which assembles computers,[32] and two facilities in Juárez – a former Motorola production base which manufactures mobile phones,[33] and a set-top box factory acquired from Cisco Systems.[34] LCD televisions are also made in the country by Foxconn.[35]

Major customers

Foxconn manufactures products for companies including:

(country of headquarters in parentheses)

Controversies

Allegations of poor working conditions

Allegations of poor working conditions have been made on a number of occasions.[49] News reports highlight the long working hours,[19][21] discrimination against mainland Chinese workers by their Taiwanese co-workers,[50] and lack of working relationships at the company.[51] 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.[52] Concerns increased in early 2012 due to a theatrical monologue purportedly based on factual accounts of working conditions at Foxconn,[53] but much of the source material was later shown to be fictional.[54]

Suicides

Main article: Foxconn suicides

There are two suicide events associated with Foxconn. One is 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.

Sun Danyong, a 25-year-old male, committed suicide in July 2009 after reporting the loss of an iPhone 4[55] prototype in his possession.[56][57]

In reaction to a spate of worker suicides where fourteen died in 2010,[58] a report by twenty Chinese universities described Foxconn factories as labour camps and detailed widespread worker abuse and illegal overtime.[59] In response to the suicides, Foxconn installed suicide-prevention netting at some facilities,[49] and it promised to offer substantially higher wages at its Shenzhen production bases.[60] Workers were also forced to sign a legally binding document guaranteeing that they and their descendants would not sue the company as a result of unexpected death, self-injury, or suicide.[61]

ABC News[62] and The Economist[63] both reported that the suicide rate of Foxconn employees is lower than the country's overall suicide rate.

Protests

In January 2012, 150 workers in Wuhan threatened to commit mass suicide because of worsening work conditions.[64] 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.[65]

See also

Companies portal
Electronics portal
Taiwan portal

References

This article uses bare URLs for citations. Please consider adding full citations so that the article remains verifiable. and the Reflinks tool are available to assist in formatting. (Reflinks documentation) (January 2012)
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  2. ^ Alexander, Ruth (19 March 2012). "Which is the world's biggest employer?". BBC. http://www.bbc.co.uk/news/magazine-17429786. Retrieved 03/20/2012.
  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. ^ "DemocracyNow.org". Apple, Accustomed to Profits and Praise, Faces Outcry for Labor Practices at Chinese Factories.
  8. ^ a b c "About Foxconn: Group Profile". Foxconn Technology Group.
  9. ^ a b c d "Foxconn Says Looking at Investment Opportunities in Brazil". Reuters. 2011-04-13.
  10. ^ Bonnington, Christina, "Apple’s Foxconn Auditing Group ‘Surrounded With Controversy,’ Critics Say", Wired magazine, February 13, 2012
  11. ^ Balfour, Frederik; Culpan, Tim (2010-09-09)."Everything Is Made by Foxconn in Future Evoked by Gou's Empire". Bloomberg News.
  12. ^ UPGRADING AND REPAIRING PCS, 20th Edition, Scott Mueller, page 24,ISBN 978-0-7897-4710-3 ISBN 0-7897-4710-5 Copyright © 2012 by Pearson Education, Inc.
  13. ^ "Foxconn Int'l plans new $500 mln south China plant". Reuters. 22 November 2007. http://www.reuters.com/article/2007/11/22/idUSHKG30408220071122. Retrieved 17 February 2012.
  14. ^ "Foxconn owner Hon Hai buying 10 percent stake in Japanese electronics giant Sharp for $806M". The Washington Post. 27 March 2012. http://www.washingtonpost.com/business/industries/foxconn-owner-hon-hai-buying-10-percent-stake-in-japanese-electronics-giant-sharp/2012/03/27/gIQAvlBFeS_story.html. Retrieved 27 March 2012.
  15. ^ 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.
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  26. ^ "Global Distribution". Foxconn Technology Group.
  27. ^ 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.
  28. ^ "Foxconn to lay off 1,500 in Hungary as orders drop". reuters.com. 2012-03-30.
  29. ^ "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.
  30. ^ "柔古来富士康集团 低调办非正式剪彩" (in Chinese). MCIL Multimedia Sdn Bhd. 09/27/2011. http://nanyang.com/node/385829?tid=460. Retrieved 02/16/2012.
  31. ^ Oleh Mahanum, Abdul Aziz (2011/09/03). "Hon Hai cadang bina 4 kilang di Malaysia" (in Malay). The New Straits Times Press (Malaysia). http://www.bharian.com.my/articles/HonHaicadangbina4kilangdiMalaysia/Article/. Retrieved 02/16/2012.
  32. ^ Business Weekly. http://www.bizjournals.com/albuquerque/print-edition/2011/12/09/foxconn-spinoff-effect-has-santa.html?page=all.
  33. ^ "Foxconn: Arson at Mexico Plant Work of Angry Ex-Employee". PC World. 2010-02-22.
  34. ^ "Citigroup Likes Hon Hai's Purchase of Set-Top Box Plant". Taipei Times. 2011-07-20.
  35. ^ "Foxconn Denies Plans To Acquire Sony LCD TV Factory in Spain". Ninelu Tu; Adam Hwang. DigiTimes. 2010-07-09.
  36. ^ "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.
  37. ^ "Kindle Screen Maker Will Increase Capacity To Meet Demand". Computer World. 2010-07-28.
  38. ^ 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.
  39. ^ "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.
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  41. ^ Buetow, Mike (April 2005). "Foxconn, HP Extend Contract Relationship". Circuits Assembly. Vol. 16, Iss. 4; p. 10, 1 pgs.
  42. ^ "Intel/Foxconn alliance could cripple Asus". The Inquirer. http://www.theinquirer.net/inquirer/opinion/1405863/intel-foxconn-alliance-cripple-asus. Retrieved 2012-02-01.
  43. ^ 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.
  44. ^ "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.
  45. ^ "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.
  46. ^ "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.
  47. ^ "The Dilemma of Cheap Electronics". The New York Times. http://pogue.blogs.nytimes.com/2012/02/09/the-dilemma-of-cheap-electronics/. Retrieved 2012-02-10.
  48. ^ 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.
  49. ^ a b Mail Foreign Service (2006-08-18). "The Stark Reality of iPod's Chinese Factories". Daily Mail (London). http://www.dailymail.co.uk/news/article-401234/The-stark-reality-iPods-Chinese-factories.html. Retrieved 2011-05-27.
  50. ^ 富士康管治双重标准 员工有冤上诉无门.
  51. ^ 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.
  52. ^ "Inside Apple's iPod Factories". Macorld UK. 2006-06-12.
  53. ^ "Moral Issues Behind iPhone and Its Makers". The New York Times 2012-03-28.
  54. ^ "Retraction". This American Life. 2012-03-28.
  55. ^ "Apple Confirms Death of iPhone Worker in China". CNET. 2009-07-21.
  56. ^ "IPhone Maker in China Is Under Fire After a Suicide". The New York Times. 2009-07-26.
  57. ^ Chang, Chris, "The Real Truth Behind Foxconn’s Suicide Cluster", M.I.C., May 19, 2010 (abstracted from a newspaper article in the Southern Weekly)
  58. ^ Pomfret, James (2010-11-05). "Foxconn Worker Plunges to Death at China Plant: Report". Reuters. http://www.reuters.com/article/idUSTRE6A41M920101105.
  59. ^
  60. ^ "Foxconn To Raise Wages Again at China Plant". Reuters. 2010-10-01.
  61. ^ 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.
  62. ^ A Trip to The iFactory: 'Nightline' Gets an Unprecedented Glimpse Inside Apple's Chinese Core, ABC News, page 3
  63. ^ Suicides at Foxconn, The Economist, May 27, 2010
  64. ^ "'Mass Suicide' Protest at Apple Manufacturer Foxconn Factory". The Daily Telegraph.
  65. ^ "Indignant Workers Threaten Suicide at Foxconn Park in Wuhan". Want China Times, Taiwan, 2012-01-10.

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