Hon Hai Precision Industry Co., Ltd., trading as Foxconn Technology Group and better known as Foxconn, is a Taiwanese multinational electronics contract manufacturing company with its headquarters in Tucheng, New Taipei, Taiwan. Today, it 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 Taiwan and one of the largest employers worldwide. Its founder and chairman is Terry Gou.
Foxconn manufactures electronic products for major American, Canadian, Chinese, Finnish and Japanese companies. Notable products manufactured by Foxconn include the BlackBerry, iPad, iPhone, iPod, Kindle, Nintendo 3DS, Nokia devices, Xiaomi devices, PlayStation 3, PlayStation 4, Wii U, Xbox 360, Xbox One, and the TR4 CPU socket on some motherboards. As of 2012, Foxconn factories manufactured an estimated 40% of all consumer electronics sold worldwide.
Foxconn has been involved in several controversies. In 2010, following a series of employee suicides at its factory in Shenzhen, Foxconn was criticized by labour activists, who accused the company of providing low wages and allowing employees to work past legal overtime limits.
|Hon Hai Precision Industry Co. Ltd.|
|Foxconn Technology Group 富士康|
|Traded as||TWSE: 2317|
|Founded||February 20, 1974 (as Hon Hai Precision Industry Co., Ltd.)|
(Chairman and President)
|Products||Electronics, electronic components, PCBs, PCB components, computer chips.|
|Services||Electronics manufacturing services|
|Revenue||NT$4.706 trillion (2017)|
|NT$112.6 billion (2017)|
|NT$135.4 billion (2017)|
|Total assets||NT$3.407 trillion (2017)|
|Total equity||NT$1.171 trillion (2017)|
Number of employees
|Literal meaning||Hon Hai Precision Industry Co., Ltd.|
|Literal meaning||Foxconn Technology Group|
Terry Gou established Hon Hai Precision Industry Co., Ltd. as an electrical components manufacturer in 1974. Foxconn's first manufacturing plant in China opened in Longhua Town, Shenzhen, in 1988.
One of the important milestones for Foxconn occurred in 2001 when Intel tapped the company to manufacture its Intel-branded motherboards instead of Asus. By November 2007, Foxconn further expanded with an announced plan to build a new US$500 million plant in Huizhou, Southern China.
In January 2012, Foxconn named Tien Chong (Terry) Cheng chief executive of its subsidiary FIH Mobile Limited. He resigned the same year, citing health problems. At this time, Foxconn made up approximately forty percent of worldwide consumer electronics production.
Expansion was further pursued after a March 2012 acquisition of 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. In September 2012, Foxconn announced plans to invest US$494 million in the construction of five new factories in Itu, Brazil, creating 10,000 jobs.
In February 25, 2016, Sharp accepted a ¥700 billion (US$6.24 billion) takeover bid from Foxconn to acquire 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" were discovered. A month later, on March 30, 2016, the deal was announced as finalized in a joint press statement, but at a significantly lower price than before. (US$2.66 billion)
In 2016, Foxconn, together with Tencent and luxury-car dealer Harmony New Energy Auto, founded Future Mobility, a car start up that aims to sell all-electric fully autonomous premium cars by 2020. A Foxconn unit, Foxconn Interconnect Technology, announced its intent to acquire Belkin International for $866m on March 26, 2018.
The majority of Foxconn's factories are located in Asia, with others in Brazil, Europe, and Mexico.
Foxconn has 12 factories in nine Chinese cities—more than in any other country.
The largest Foxconn factory is located 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". The park produces the bulk of Apple's iPhone line.
Covering about 1.16 square miles (3 square km), the park 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, book store 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.
Foxconn's future expansion include sites at Wuhan in Hubei province, Haizhow, Kunshan in Jiangsu province, Tianjin, Beijing, and Guangzhou in Guangdong province, China. A Foxconn branch that primarily manufactures Apple products is Hongfujin.
On May 25, 2016, the BBC reported that Foxconn fired 60,000 employees because it had automated "many of the manufacturing tasks associated with their operations". The organization later confirmed those claims.
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 Jundiaí, 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. It is the second-largest exporter in the Czech Republic. The Turkey facility is located 100 km west of Istanbul within European Free Trade Zone in the Corlu district. It was established in 2010. It covers 14,300 sq. meters.
Foxconn had an operational unit starting in 2006 in the Special Economic Zone of Chennai, Tamil Nadu. This unit closed on December 24, 2014, affecting 25,000 employees. As of mid-2015, Foxconn was in talks to manufacture Apple's iPhone in India. In 2015, Foxconn announced that it would be setting up twelve factories in India and would create around one million jobs. It also discussed its intent to work with the Adani group for expansion in the country. However, as of December 2017, no significant factories have materialized. In August 2015, Foxconn invested in Snapdeal. They also signed an MOU with the state government of Maharashtra to set up an electronics manufacturing plant in Maharashtra with an investment of $5 billion within a 5-year period. Recently, it started manufacturing products for Xiaomi, OnePlus, and Gionee.
Foxconn and Sharp Corporation jointly operate two manufacturing plants specializing in 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. The company was believed to be receptive to the plan.
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 in Tijuana at a plant acquired from Sony.
Foxconn announced on July 26, 2017 that it would set up a $10 billion TV manufacturing plant in southeastern Wisconsin and would initially employ 3,000 workers (set to increase to 13,000). As part of the agreement, Foxconn was set to receive subsidies ranging from $3 billion to $4.8 billion (paid in increments if Foxconn met certain targets), which would be by far the largest subsidy ever given to a foreign firm in U.S. history. Some estimate that Foxconn is expected to contribute $51.5 billion to Wisconsin's GDP over the next 15 years, which is $3.4 billion annually. However, numerous economists have also expressed skepticism that the benefits would exceed the costs of the deal. Others have noted that Foxconn has made similar claims about job creation in the past which did not come to fruition.
Foxconn was also exempted by Governor Walker from filing an environmental impact statement, drawing criticism from environmentalists. The plant was estimated to contribute significantly to air pollution in the region. Environmentalists criticized the decision to allow Foxconn to draw 7 million US gallons (26,000 m3) of water per day from Lake Michigan. Given water concerns, Foxconn is spending $30 million on zero liquid discharge technology. Foxconn is also required to replace wetlands at a higher ratio than other companies; Foxconn must restore 2 acres of wetland for every 1 acre disturbed instead of the ratio of 1.2 to 1 for other companies.
As of October 4, 2017, Foxconn agreed to locate their plant at Mount Pleasant, Wisconsin, and broke ground for the plant June 28, 2018. President Trump was in attendance to promote American manufacturing.
The following list consists of Foxconn's present or past major customers.
Their country of origin or base of operations is in parentheses.
On 18 May 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 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. In May 2010, Shanghaiist reported that security guards had been caught beating factory workers.
In reaction to a spate of negative press, particularly that involving worker suicides in which 14 people died from January to May 2010, Steve Jobs defended Apple's relationship with the company in June 2010, citing that its Chinese partner is "pretty nice" and is "not a sweatshop". During this time, however, a report from 20 Chinese universities described Foxconn factories as labor camps with widespread worker abuse and illegal overtime similar to the Mongolian Government, which nationalized foreign and local company shares by force. In an article published in 2010, the South China Morning Post branded Foxconn factories as "labour camps".
Concerns increased in early 2012 due to an article published in The New York Times in October 2011. It reported evidences that substantiated some of the criticisms. The 2012 audit commissioned by Apple Inc. and performed by the Fair Labor Association found that workers routinely subjected to inhumane bouts of overtime up to 34 hours without a hike in pay and suggested that debilitating workplace accidents and suicides 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, for example in 2010 and 2011. These typically find far worse conditions than the 2012 Fair Labour Association audit did, but they rely on a far smaller number of employee informants, circa 100 to 170. The Fair Labour 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. One worker said the protest resulted from 600 workers being moved into a new "unbearable" factory location. In September 2012, a fight at worker dormitories in Taiyuan, Shanxi, where a guard allegedly was beating a worker, 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 as part of an internship programme, in violation of the 16 year age limit for legal workers. Foxconn said that the workers had been brought in to help deal with a labour shortage, and Xinhua quoted an official saying that 56 underage interns would be returned to their schools. Reuters quoted Foxconn saying that 2.7 percent of its workforce in China were long or short-term interns. In response to the scrutiny, Foxconn said it would cut overtime from the current 20 hours per week to less than nine hours a week.
Also in October 2012, there was a crisis concerning an injured worker, when 26-year-old Zhang Tingzhen was electrocuted and fell in a factory accident a year earlier. His doctors did immediate surgery to remove part of his brain, "[after which] he lost his memory and can neither speak, walk". When his father attempted to get compensation in 2012, Reuters reported that Foxconn told the family that if they did not transport and submit him for a disability assessment in Huizhou 43 miles away, they would cut off funding for his treatment. His doctors protested the move for fear of a brain haemorrhage en route, and the company stated that it was acting within labour laws. His family later sued Foxconn in 2012, arguing in court that Tingzhen had been summoned to the wrong city. In 2014, a court ruled that he did have to be assessed in Huizhou to receive compensation, with Foxconn offering a settlement for the father to recant his criticisms, which was refused.
In February 2015, Beijing News reported that an official with the All China Federation of Trade Union (ACFTU), Guo Jun, said that Foxconn allegedly forced employees to work overtime, resulting in occasional death by karōshi or suicide. Jun also said that the illegal overtime resulted from a lack of investigation and light punishments. Foxconn in return issued a statement questioning Guo's allegations, arguing workers wanted to work overtime to earn more money.
In November 2017, the Financial Times reported that it had found several students working 11 hour days at the iPhone X plant in Henan province, in violation of the 40-hour-per week mandate for children. In response, Foxconn announced that it has stopped the interns' illegal overtime work at the factory, where 3,000 students had been hired that September.
Suicides among Foxconn workers have attracted the media's attention. Among the first cases to attract attention in the press was the death of Sun Danyong, a 25-year-old man who committed suicide in July 2009 after reporting the loss of an iPhone 4 prototype in his possession. According to The Telegraph, Sun Danyong had been beaten by security guards.
There was also a series of suicides which were linked to low pay in 2010. In reaction to a spate of worker suicides in which 14 people died in 2010, Foxconn installed suicide-prevention netting at the base of buildings in some facilities and promised to offer substantially higher wages at its Shenzhen production bases. By 2011, 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. In 2011, Foxconn also hired the PR firm Burson-Marsteller to help deal with the negative publicity from the suicides. That year, the nets seemed to help lower the death rate, although at least four employees died by throwing themselves off buildings.
In January 2012, there was a protest by workers about conditions in Wuhan, with 150 workers threatening to commit mass suicide if factory conditions were not improved. In 2012 and into 2013, three young Foxconn employees were reported to have died by jumping off buildings. In January 2018, another suicide was reported by a factory worker, after 31-year old Li Ming jumped to his death off a building in Zhengzhou, where the iPhone X was being manufactured.
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The 2010 Chinese labour unrest was a series of labour disputes, strike actions, and protests in the south of the People's Republic of China that saw striking workers successfully receive higher pay packages.Among the incidents were a string of employee suicides at Taiwan-owned electronics manufacturer Foxconn and strike actions at Honda factories in Guangdong province, both of which resulted in wage increases.The Economist stated that wages were merely rising to make up for lost ground due to wage freezes, and China's inflationary monetary environment at the time made regular pay rises a necessity for workers concerned with maintaining a high quality of life. Reuters quoted Toyota CEO Akio Toyoda, as saying, "this has both good and bad elements. A wage increase is not necessarily bad if properly managed. The experience of the past 100 years shows that auto workers become auto consumers also."The events at Honda and Foxconn were followed by a string of labour-related protests and strikes at foreign-owned factories, mostly in the south of the country.2011 Chengdu Foxconn explosion
The 2011 Chengdu Foxconn explosion occurred on May 13, 2011 in Chengdu, Sichuan province, People’s Republic of China.Apple Wireless Keyboard
The Apple Wireless Keyboard is a wireless keyboard built for Macintosh computers and compatible with iOS devices. It interacts over Bluetooth wireless technology and unlike its wired version, it has no USB connectors or ports. Both generations have low-power features when not in use.
It was discontinued on October 13, 2015, and was succeeded by the new Magic Keyboard.Belkin
Belkin International, Inc., is an American manufacturer of consumer electronics that specializes in connectivity devices. Headquartered in Playa Vista, Los Angeles, California, it sells various consumer and commercial product lines, including routers, iPod and iPhone accessories, mobile computing accessories, surge protectors, network switches, hubs, (USB and computer network) cables, KVM switches, racks and enclosures, and other peripherals. Belkin International is the parent company for Belkin, Linksys and Wemo branded products and services, as well as the smart home water management company, Phyn.Clarion (company)
Clarion Co., Ltd. (クラリオン株式会社, Kurarion Kabushiki-gaisha) is a Japanese manufacturer of car audio, automotive navigation systems, AutoPCs, visual equipment, bus equipment, and communication equipment. It is majority owned by Hitachi and joined by Foxconn.
Up until the end of 2005, products in Japan were marketed under the brand name AddZest, while outside Japan the same product typically carried the Clarion name brand. This was changed in 2006, and the brand "Clarion" along with a redesigned logo are now used worldwide. It is known for its close relationship with Nissan, who uses Clarion products almost exclusively in its vehicles, and owned a 6.25% share in them until 2002.Clarion has an OEM relationship with many automotive companies, providing car headunits and components to them for their production vehicles. Clients include Saab Automobile, Suzuki, Ford, Volkswagen, Proton, Toyota, Subaru, and Peugeot.A contest is held annually to select the Clarion Girl, who is chosen to represent Clarion's car audio equipment in television and print advertising campaigns during the following year. The contest was started in 1975, and is now co-sponsored by Fuji TV.Criticism of Apple Inc.
Apple Inc. is a multinational American technology company which sells consumer electronics that have been claimed by critics to combine stolen and/or purchased designs that it claims are its own original creations. Criticism of Apple includes unethical business practices such as anti-competitive behavior, rash litigation, and dubious tax tactics, their production methods involving the use of sweatshop labor, customer service issues involving misleading warranties and insufficient data security, and concerns about environmental destruction. Additionally, it has been criticized for its alleged collaboration with U.S. surveillance program, PRISM.
Allegations against the company are varied, including:
Thwarting smaller competitors
Dishonest corporate policy
E-waste and environmental destruction
Harsh labor conditions and child labor accusations
Collaborations with the U.S. government and the NSAEnTourage eDGe
The enTourage eDGe is a dual-panel personal device, combining a tablet computer on one screen and an e-book reader on the other. Since 2011 it has been developed by Pleiades Publishing, Ltd.
The device runs Google's Android OS. At present Foxconn is engaged in mass manufacturing of the enTourage eDGe v2.5. Production volume is growing in line with demand (especially in scholastics), and the device is being geared to the high requirements for modern tablets.Foxconn's Wisconsin plant
The Foxconn plant in southeastern Wisconsin was a project to build a US$10 billion flat screen TV manufacturing plant in southeastern Wisconsin that would employ 13,000 people. The state of Wisconsin had made an agreement with Foxconn whereby the company would receive subsidies ranging from $3 billion to $4.8 billion (paid in increments if Foxconn met certain targets), which would have been by far the largest subsidy ever given to a foreign firm in U.S. history.Foxconn suicides
The Foxconn Suicides were a spate of suicides linked to low pay at the so-called "Foxconn City" industrial park in Shenzhen, China, that occurred alongside several additional suicides at various other Foxconn-owned locations and facilities in Mainland China. Within 2010, there were 18 attempted suicides by Foxconn employees resulting in 14 deaths in the same year. The series of suicides drew media attention, and employment practices at Foxconn—one of the world’s largest contract electronics manufacturers—were investigated by several of its customers, including Apple and Hewlett-Packard (HP).Labor relations in China
As the Economy of China has rapidly developed, issues of labor relations have also developed.Mount Pleasant, Wisconsin
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An original equipment manufacturer (OEM) is a company that produces parts and equipment that may be marketed by another manufacturer. For example, Foxconn, a Taiwanese electronics contract manufacturing company, which produces a variety of parts and equipment for companies such as Apple Inc., Dell, Google, Huawei, Nintendo, Xiaomi, etc., is the largest OEM company in the world by both scale and revenue.
The term is also used in several other ways, which causes ambiguity. It sometimes means the maker of a system that includes other companies' subsystems, an end-product producer, an automotive part that is manufactured by the same company that produced the original part used in the automobile's assembly, or a value-added reseller.PocketBook International
PocketBook is a multinational company which produces e-book readers based on E Ink technology (an electronic paper technology) under the PocketBook brand.
The company was founded in 2007 in Kyiv, Ukraine by Oleg Naumenko. Its headquarters is located at Lugano in Switzerland.Scott Walker (politician)
Scott Kevin Walker (born November 2, 1967) is an American politician who served as the 45th Governor of Wisconsin from 2011 to 2019.
Born in Colorado Springs, Colorado, Walker was raised in Iowa and in Delavan, Wisconsin. He was elected to the Wisconsin State Assembly in 1992, representing a district in western Milwaukee County. In 2002, Walker was elected Milwaukee County Executive in a special election following the resignation of F. Thomas Ament; he was elected for a full term in 2004 and was re-elected in 2008.
Walker ran for Governor of Wisconsin in 2006, but dropped out of the race before the primary election. He ran again in 2010 and won. Shortly after his inauguration in 2011, Walker gained national attention by introducing the Wisconsin Budget Repair Bill; the legislation proposed to limit collective bargaining for most Wisconsin public employees. In response, opponents of the bill protested at the Wisconsin State Capitol and Senate Democrats left the state in an effort to prevent the bill from being passed. Nevertheless, the Wisconsin Budget Repair Bill became law in March 2011. Opposition to the law led to an attempt to recall Walker from office in 2012. Walker prevailed in the recall election, becoming the first governor in the history of the United States to survive a recall effort.
In 2014, Walker defeated his Democratic challenger, businesswoman and Madison School Board member Mary Burke. For a brief period in 2015, Walker was a candidate for his party's nomination in the 2016 presidential election. Walker sought a third term as governor in 2018, but was defeated by Democrat Tony Evers.Sharp Corporation
Sharp Corporation (シャープ株式会社, Shāpu Kabushiki-gaisha) is a Japanese multinational corporation that designs and manufactures electronic products, headquartered in Sakai-ku, Sakai. Since 2016 it has been a subsidiary of Taiwan-based Foxconn Group. Sharp employs more than 50,000 people worldwide. The company was founded in September 1912 in Tokyo and takes its name from one of its founder’s first inventions, the Ever-Sharp mechanical pencil, which was invented by Tokuji Hayakawa in 1915.
As of 2013, Sharp Corporation is the tenth-largest, by market share, television manufacturer in the world. In Japan it has been a long-time leader. Sharp has at times also been the most popular mobile phone brand in the Japanese market, but is currently third biggest.Terry Gou
Terry Gou (Chinese: 郭台銘; pinyin: Guō Táimíng; born 8 October 1950) is a Taiwanese tycoon who is the founder and chairman of Foxconn, the world's largest contract manufacturer of electronics, with factories in several countries, mostly in mainland China where it employs 1.2 million people and is its largest private employer and exporter.Tom Merritt
Thomas Andrew Merritt (born June 28, 1970) is a technology journalist, writer, and broadcaster best known as the host of several podcasts. He is the former co-host of Tech News Today on the TWiT.tv Network, and was previously an Executive Editor for CNET and developer and co-host of the daily podcast Buzz Out Loud.
He currently hosts Daily Tech News Show, Cordkillers, and Sword and Laser, among other shows.Ultra ATX
Ultra ATX is an 14.4 × 9.6 in (366 × 244 mm) motherboard form factor proposed by Foxconn during CES in January 2008. In principle, it is simply an oversized version of ATX that supports 10 expansion slots, as opposed to the seven slots of ATX, and it requires a full-tower computer case to support the added height of the motherboard. Using the same 9.625 in (244 mm) reference width of ATX, the Ultra ATX form factor expands its length to 14.4 in (366 mm).Xiaomi Mi Pad
The Xiaomi Mi Pad is a tablet computer produced by Xiaomi. It is Xiaomi's first tablet, manufactured by Foxconn. The device is available in two storage sizes, 16 GB and 64 GB.