There, people die for the iPhone: a trip to Apple's closed city. foxconn. Chinese factories of death
Apple, which is the most expensive brand in the world of electronics, no matter how surprising it may sound, does not have its own production facilities. Cupertino engineers develop "apple" products and create software for them. However, the iPhone and iPad are assembled at factories located in China. This policy of the company is connected with the fact that in China the production of electronics is cheaper, and the production process itself is much easier and faster to organize.
Apple's partners in iPhone components also include Samsung's competitors, which make processors and memory chips, and LG and Sharp, which produce displays, and TSMC, a stand-in for CPUs. However, the final assembly of smartphones is carried out by Foxconn, a Chinese corporation that is the world's largest electronics manufacturer.
Many people think that brand new iPhones are assembled by an automatic computerized line, and people only control the production process, test devices and prepare them for sale. In fact, much of the work at the Foxconn factory is done by hand. The total staff of the corporation is more than a million people! This is comparable to the population of a large city such as Prague or Munich.
Some of these employees are involved in the development, maintenance, marketing of products, and also hold leadership positions. However, the bulk of all workers are employed precisely in production. These people create smartphones, tablets, cameras, game consoles and other electronics, literally, with their own hands.
The Foxconn factory in China is not just an electronics manufacturing facility. It is a real city within a city. In addition to the premises in which the assembly lines are located, the factory has canteens, Internet cafes, sports fields and other places for recreation. Also on the territory of the enterprise there are hostels for nonresident employees. 
Many residents of villages and small towns tend to megacities, as there are often not enough jobs for everyone in their homeland. And the earnings here are higher: at the Foxconn plant, visitors can count on a salary of up to $20 a day, while it is very difficult to earn that kind of money at home. Therefore, an eight-bed dorm room, a 12-hour working day with two breaks, and strict control do not seem to be excessively harsh working conditions for visitors. When a company announces an expansion of staff, huge crowds of job seekers line up in front of the plant. The main part of the applicants are young people aged 16 to 30 years. 
Not only the iPhone is created at the Foxconn plant. The corporation also cooperates with such world-famous companies as Canon, HP, Microsoft, Intel, Nintendo and others.
How the iPhone is made at the Foxconn factory
The production process at the Foxconn plant is continuous. Two shifts of workers working 12-hour days make iPhone cases, install motherboards, connect displays, batteries, cameras and other components. All operations are carried out so quickly that Foxconn's Shenzhen plant produces 10,000 iPhone cases in just an hour. During the whole day, workers can only leave the conveyors twice for meals and a short break.
For the entire time of work, employees perform monotonous work, which boils down to repeated repetition of several manipulations. Each employee is engaged in their own task: some grind the aluminum case, others carve a bullseye on it, others connect displays, and fourth install cameras. 
This goes on all day: during the shift, the worker repeats the same movements several thousand times. This approach allows employees to hone their skills to the level of automatism, but is rather tedious. After working at the assembly line, assembly line workers try to have time not only to have a bite to eat in the canteen, but also to take a nap. 
The main operation in the production of the iPhone, which cannot be done by hand, is the manufacture of printed circuit boards. Special machines are engaged in stamping them, and people only install ready-made modules into cases. This is perhaps the only major manipulation that is performed automatically.
Difficult working conditions lead to suicide
A few years ago, the world spread the news that difficult working conditions lead to suicides of employees whose nervous system cannot withstand constant stress. Indeed, the stress was so strong that in a few months more than 10 people jumped out of the windows of the hostels.
Considering the scale of the Foxconn plant, as well as the fact that in East Asia the suicide rate is twice as high as in Europe, it detracts from the catastrophic news, but the company's management (including under pressure from Apple) took action. The workers' wages were raised (up to $1.78 per hour), a psychological support center was organized, and for the desperate, nets were pulled under the windows. 
However, the number of young Chinese who want to join the production of the iPhone is growing faster than the growth rate of the popularity of Apple technology in the world. Even the news of suicide does not frighten the new arrivals. When the plant announced the recruitment of employees in connection with the growing need for labor, a line of more than 3,000 people gathered in front of the personnel department of the enterprise. Some of these people traveled hundreds of kilometers to take advantage of the chance to land a lucrative (by Chinese standards) vacancy. 
What attracts people to the Foxconn plant?
Perhaps, to a European resident, the working conditions at the plant will seem terrible, and the work shift too long. However, for the youth of China, this is a good chance to earn money. Some come here, leaving their families to feed not only themselves but also their relatives, others to earn money for their own business, others to gain valuable experience, and others simply because there is no normal work at all in their homeland. In the provinces, things are so grim that young Chinese see employment at the Foxconn plant as attractive prospects for themselves. 
Foxconn is the largest manufacturer and developer of computer, case and household appliances, which has been operating in the market of many countries for about 30 years.
The company's main factory is located in Taiwan, and subsidiaries are located in China, the United States, Great Britain, Japan, Poland, Mexico, Hungary, the Czech Republic, Russia and other countries.
History of Foxconn
The company began its activity with the production of plastic products in 1974.
1988 is the time when the very first Foxconn factory was opened in China. The acquisition of new plants and enterprises in Japan and the USA begins in 1994. In subsequent years, the company creates additional plants in the UK, the Czech Republic, Mexico, Vietnam and other countries, and in 2010 a branch is opened in the Russian Federation.
Today, Foxconn is one of the leading companies in terms of turnover and net profit per year ($2.36 billion).
What products does Foxconn manufacture and for whom?
Foxconn's activities are diverse and are based on:
1. Production of computer components for the world famous company Intel, which fully comply with modern standards and requirements for quality and technical performance.
These are system and motherboards, video cards, fans, case spare parts for servers and computers, cable systems.
2. The manufacture of mobile communication devices - these are cell phones for companies such as Amazon Kindle, Cisco and Mo
torola".
3. Foxconn produces modern computer devices - iPhones, iPads, Mac mini and other electronic devices for the world-famous Apple brand and a number of other corporations.
4. Fulfillment of special orders for US organizations "Hewlett-Packard" and "Dell".
5. Foxconn has recently begun to sell its own products (cases and motherboards) under its own brand. For example, the company's novelty - a small compact case RS-506 L will allow you to assemble a small, but not devoid of its functionality, system.
Interesting facts about Foxconn
Foxconn is the largest private enterprise in Taiwan.
Foxconn employs over 1.3 million people worldwide. Moreover, more than 800 thousand people work at factories in China.
The minimum wage for employees at Foxconn factories in China is about 1,500 yuan.
Foxconn has about 1.5 thousand intellectual property patents in China, Taiwan, America, which gives the company the 9th position in the entire list of patents for computer activities.
In 2003, Foxconn was awarded the Platinum Award as the best and most reliable manufacturer of computer electronics.
Foxconn is the number one supplier of computer components worldwide and the second largest supplier of heat dissipation systems.
Foxconn is the first subcontractor of organizations such as Intel, Nokia, Sony, Apple, Motorola and other reputable firms.
Global Importance of Foxconn
Foxconn products play an important role not only in the development of the world's technogenic corporations, but also in the prosperity of the electronics industry around the world.
The company's equipment is certified by the relevant authorities in different countries and receives approximately 19 certificates of quality and conformity. The firmware installed on the company's electronic equipment corresponds to 36 languages, which allows almost any country to sell the product.
In addition, the company's products are imported to many countries, including Australia, Vietnam, Korea. In the future for 2014 - the conquest of the market in Eastern Europe and Russia.
Foxconn's production is aimed at providing high-quality and high-tech equipment to both large and retail consumers.
Today, the development of Foxconn does not stand still - every year it develops and releases more and more innovations that combine environmentally and human-friendly use and ease of use.
The vc.ru observer studied the history of the Asian company Foxconn, which produces components for the world's largest players in the high-tech market and is regularly criticized for difficult working conditions in its factories.
It all started with plastic TV buttons
The largest companies in the world, as a rule, do not manufacture their products themselves. For most of these brands, this is a method to reduce the cost of production. This is also useful from the point of view of the economic situation in the world: leaders provide jobs for residents of less developed countries. Thus, companies with billions of dollars of turnover appear where, as it seems to many, there is no developed business.
As a result of this approach, several global manufacturers have already appeared on the market, among which one of the first places is occupied by Foxconn, a Taiwanese company that produces most of the products of Apple, Microsoft, Sony, Cisco and other well-known corporations.
Foxconn's history begins with an unusually active founder named Terry Gow. His father, of Chinese origin, was forced to flee to Taiwan for political reasons: he was a member of the Kuomintang party and fought on the side of Chiang Kai-shek. Terry, whose real name was Guo Taiming, was born in this country. He first went to college and later went to work as a petty clerk. Soon, the uninteresting work bored the future entrepreneur, and in the late 1960s he went to the United States.
There is very little information on the web about what Gou did in the States, but most sources agree that the future entrepreneur was interested in the computer revolution that was taking place and the American approach to doing business.
Be that as it may, in 1974 Terry returned to his homeland and, having taken about $ 7.5 thousand from his parents, together with his brother opened a company for the production of plastic components, called Hon-Hai. At first, about 10 people worked here, and the orders they carried out looked little like the production of new iPhones - these were plastic buttons for TVs (according to some reports, Philips was one of their first customers).
More than an ordinary manufacturer from Taiwan
Terry expected to make the company something more than an ordinary manufacturer from Taiwan, and began to look for ways to strengthen its position. One of the most common legends says that the case brought Gou to the head of Taiwan named Jiang Jiang, who dreamed of the unification of China. Terry offered him another option - economic reunification: if a Taiwanese businessman opens several factories in China, this will allow two parts of one people to unite in labor. So Hon-Hai received good investments and the opportunity to open factories both in Taiwan and in China. This version looks fantastic, but the possibility that it was so cannot be ruled out.
The real breakthrough for the brand came in 1980. At this time, the company received a major customer in the form of Atari, which placed an order for connectors. Then Gou went to the US, where, as a sales agent, he began to walk around the offices of large brands, offering them Hon-Hai services. Due to his perseverance, he returned to Taiwan with a large list of clients. Companies ordered motherboard connectors, cases and other components. This had a positive effect on the brand's income and finally convinced Terry Godu that outsourcing production is a fairly profitable business.
At the same time, the entrepreneur changed the company's trade name to the word Foxconn, which is more sonorous for foreign customers.
In 1983, the company's first factory opened in Taipei City. Order volumes began to rise, which allowed Foxconn to think about integrating into other countries where there would be enough labor. The first was China, where the brand entered in 1988 - this was done either by influencing the government of Taiwan, as described above, or, according to other sources, taking advantage of a temporary relaxation of the PRC's closeness policy in the late 1980s.
In 1991, Foxconn's first public offering on the Taiwan Stock Exchange took place. Despite the growth of the company, Gow avoided the attention of the press and rarely gave interviews, commenting on events in a neutral manner.
In 1994, Terry began to think about realizing his new goal - deeper integration into the flagship markets of the United States and Japan, which needed cheap and high-quality components. To do this, the entrepreneur used a proven method, thanks to which he successfully integrated into China: the opening of research centers and production facilities in the countries. The idea turned out to be correct: companies began to trust the brand more, having the opportunity to directly communicate with a part of the developers, instead of maintaining contact with a company in Taiwan.
The "dictator" does not require from workers what he does not do himself
Another important element of Foxconn's future success was the attitude to work. From the very beginning of the company, Gou emphasized that employees should do their job well, because there are many manufacturers from third world countries and only those who provide customers with a high level of products can achieve success. In addition, Terry was ready to fulfill any order, regardless of its complexity.
Along with the growth of the scale of the company, the corporate culture also developed. Many progressive media considered Gow a kind of dictator who brutally exploits workers, forcing them to work for 14 hours and demanding absolute quality in every detail. Such accusations were not without merit, but had little to do with what was really going on inside Foxconn.
The company has a special set of principles created by Gou himself.
Every person working in a corporation must know them by heart. It expresses all the key rules and requirements from each employee, calling, first of all, to do their job honestly and well. In addition, it is forbidden to talk, listen to music and smoke in the workplace. The punishment for breaking the rules is washing the factory toilets. It is true that workers spend more than 12 hours at the factory, but this also applies to the head of the company. Gou in his interviews has repeatedly emphasized that a strong leader does not require from his employees what he does not do himself.
Something else that needs to be mentioned when talking about the managerial approach of the Taiwanese entrepreneur is the desire to keep everything under control. Gou can't stand things being left to chance, and constantly monitors the situation at each of the company's plants to make sure his orders are being followed. Gou is also merciless to rivals Foxconn. In addition to competition, he uses lawsuits in the fight if one of the rivals crosses the line.
70% of components: the principle "from and to"
In 1995, when the company's research laboratories began operating in the US, Foxconn began to modernize various computer components. Things quickly took off, and by the end of the decade, the brand had patented over 2,000 inventions, which allowed it to enter the list of the most innovative companies in the world. One of the main discoveries attributed to the brand, the semi-assembled Barebone computers, caused a new wave of orders from corporations with big names like IBM and allowed the giant to strengthen its position. In addition, Foxconn has been a market leader in connector manufacturers.
The high growth rate of the company influenced its further plans to enter other countries of the world. Goe, who did not want to place all his production facilities in one country, in 1998 began to open enterprises in England and Scotland. A year later, such branches will appear in the United States.
At the same time, Foxconn received a new strategic partner in the face of Dell, which became the customer of computer cases. The head of the American company personally met with Gow and called him one of the best salesmen he had ever met. By the way, there is often information that the purchase of the American plant was forced for Foxconn: this was one of the conditions of the deal with Dell, which promised serious prospects for the Taiwanese company.
At the same time, Businessweek included the company in the list of 100 leading manufacturers of the IT industry. Foxconn was ending the decade as one of the world's most famous electronics manufacturers and with $1.5 billion in revenue. The company already employed more than a million people, signed contracts with a number of major brands, including IBM, HP and Compaq, and cooperation with Apple was also expanded.
Before moving on to the eventful 2000s, it's worth pointing out why the brand ended up being such an all-out success. Unlike many other manufacturers, Foxconn does not buy parts made by other companies. This means that the market giants, turning to Gou, get a partner who assembles almost all the “stuffing” at their own factories (some sources indicate that this is 70% of the components). This approach allows you to control every aspect of the production of a particular gadget.
Apple: cloudless partnership?
The beginning of the 2000s in the company is associated with two important events: the increase in the number of enterprises in other countries and the expansion of cooperation with Apple, which began in 1986.
Thus, before the return of Jobs, the companies had already managed to cooperate. When, in 1998, Apple's CEO needed a quality manufacturer to launch the iMac on a massive scale, he continued to work with Foxconn, although he backed away from many of the previous executives' decisions. As a result, Gou's company, having proven itself well in front of Jobs, will gradually become one of the giant's key partners, first producing the aforementioned iMacs at its factories, and later the iPhone, iPad and other Apple products.
The entrepreneurs got along well, later Terry said in an interview that he took a business card from Steve as a keepsake. In addition, Gou repeatedly emphasized the greatness of Jobs and said that he really changes the world with his products. The Taiwanese businessman praised other Apple figures as well. Gou was aware of the opportunities that such contracts opened up for his company, and did everything to fulfill them as best as possible. He purchased equipment for the production of iPhone for tens of millions of dollars and tried his best to fulfill orders on time and at the proper level.
Naturally, not everything was rosy: during the cooperation of the companies there were both crises and scandals. The Taiwanese manufacturer is known for keeping its customers' trade secrets, but this system has failed on several occasions. For example, in 2009, due to the fault of the worker San Danien, information about the iPhone 3GS appeared in the press ahead of time. As a result, the young man - either out of desperation or fear - which led to attacks on Apple and Foxconn in the press. Brands got out of the situation by paying compensation to relatives and giving them MacBooks.
Since 2012, there has been much more news about leaks from Foxconn factories. Some of them were confirmed, others turned out to be lies, but it began to seem to many that the security service at the manufacturer's factories did worse.
There have also been production disruptions when part of the iPhone 5 went on sale with a scratch on the case, which caused dissatisfaction among buyers. At the plant, a strike of workers almost began, who disagreed with the fact that the blame was placed on them, but they were stopped in time.
According to many analysts, Apple would not have been able to reach its current level without Foxconn being such a comprehensive supplier. The efficiency and quality work of the Taiwanese manufacturer helped the Jobs company achieve resounding success.
Gou also had a normal relationship with Tim Cook, who called the Taiwanese entrepreneur an excellent leader and purposeful person. The current CEO of Apple really has nothing to complain about: his partner does an enormous amount of work at the best price. For example, the release of the iPhone 5S for some time was carried out in batches of 500 thousand per day, and some analysts estimate the cost of one phone of this model at $ 199-210 - which, in comparison with the prices of the gadget, looks extremely positive for Apple.
Cook, by the way, personally visited one of the Foxconn factories, after which he suggested methods for softening the work schedule to partners. In the future, he will continue to visit production from time to time.
In 2013, it became known that Apple, in order to reduce its dependence on Foxconn, agreed to cooperate with another manufacturer, Pegatron. Gou did not publicly react to this decision, and his factories still fulfill most of the orders of the Cupertino company.
Coverage: almost every gadget in the world
Not only cooperation with Apple led to the total growth of the Taiwanese manufacturer. During its existence, the company entered into agreements with such giants as Amazon (releasing Kinddle and PocketBook) and Sony (Sony Playstation). In addition, Foxconn makes parts for Dell and Intel, the X-Box 360, Nokia and Motorola phones, as well as a huge number of other gadgets and components, including, for example, GeForce video cards. Foxconn continues to increase the number of customers even now: for example, in 2013 the company signed a five-year contract for the production of Blackberry products.
It would take half a screen to list all of Foxconn's customers and still run the risk of missing out.
Almost every gadget in the world was either completely produced at the factories of a Taiwanese company, or some part of it was created there. Many may argue that this is only confirmation that Asia does not create anything itself, but only produces, but this is not entirely true either. As mentioned earlier, Foxconn regularly patents its own high-tech inventions. We are not talking about cool gadgets yet, but even the smallest detail is a movement towards a further breakthrough.
The Taiwanese manufacturer not only receives large contracts from well-known corporations, but also actively expands the geography of production. It has already been said about the placement of the company's plants in a number of countries in Europe and Asia. In mid-2011, it became known about the giant's plans for more active production in Brazil, where at that time it already had two factories. According to the media, this became possible due to the fact that the labor of Chinese workers becomes more and more expensive every year. The company promised to invest about $ 9 billion in Brazil. In 2013, it turned out that part of Apple's production would move to this country, and later it was announced that Xiaomi smartphones would be manufactured here.
Another new Foxconn plant has appeared in India. The company started operating here in 2007. In 2015, information appeared that the brand would continue to be introduced into this country. Plans were announced to invest $1 billion in local startups and Gou's intention to build a bank and factories here for a total of $5 billion. By the way, part of Xiaomi's production is also located in this country.
It is necessary to say a few words about the factories of the company. They are described as huge assembly lines where workers are required to operate with surgical precision. Various operations with gadgets are performed here, from the casting of the case to the creation of the last element. According to those who visited the production, this spectacle is impressive, although it makes one think about total globalization.
Scandals: Difficult working conditions and screens on the windows “from suicides”
Speaking of Foxconn, one cannot ignore the topic of scandals. The greatest damage to the reputation of the manufacturer and its customers was caused by rumors about difficult working conditions at the factories of the brand, which appeared back in 2006. Apple then conducted its own inspection, the results of which made it clear that if there are problems, they are minimal and typical for the entire region, and not just for Gou. In the future, due to the escalation of problems, Apple will introduce a special commission that monitors the activities of the company's Asian suppliers and manufacturers and publishes the results of the audits annually.
The next reason for the scandal was a series of suicides at Foxconn Chinese factories in 2010. 14 people committed suicide. The public reacted violently, demanding that the company where people work in unbearable conditions be punished, but as a result of several inspections, no open violations were found.
People were shocked by Terry Gow's statement that he allegedly thought about the real existence of the problem only after the third suicide. Such cynical statements are constantly attributed to the entrepreneur, but most of them are caused by the desire to create a reputation for him as a cruel enslaver.
Steve Jobs also commented on the situation: he called the incident a tragedy and again pointed out that not only Apple's strategic partner, but also the region as a whole, has problems.
At the same time, Foxconn is one of the best companies in the region: it consistently pays workers wages and provides them with housing, although not the most comfortable. Nevertheless, articles often appear in the media about inhuman working conditions at work and that workers who do not fulfill the plan are forced to work overtime. After a series of suicides, workers' wages were raised from 900 yuan to 1,800 yuan (approximately $143 and $286). In addition, the workers had the opportunity to receive psychological support, and special nets were installed under the windows of the factories, designed to prevent suicide attempts.
By the way, after all these problems, Gou seriously thought about replacing people with robots, which could be more cost-effective.
In 2012, information appeared that the company. According to rumors, 14-year-olds are actively working in factories (in China, you can work from 16). The company reacted to this with restraint, protesting the allegation that they were just trainees sent by schools during the holidays. It was also clarified that they did not produce Apple equipment, and in general, Foxconn is launching an internal investigation to find those responsible for what happened. On the other hand, there are rumors that the company itself is putting pressure on the government to organize school practice in its factories.
In 2013, a new wave of suicides swept through the company's production: this time, three people committed suicide. Information appeared on the network that it was not stress at all that prompted them, but the desire to provide for loved ones, because last time Foxconn paid substantial compensation to the families of the victims. There was a rumor that the company itself stated this, but no one could officially confirm it.
In 2014, Foxconn got into another scandal, but this time the company was only indirectly involved in it. The company told the government that it suspects three top executives of taking bribes from suppliers of iPhone parts. Foxconn representatives stressed through the media that they consider such actions unacceptable and have already begun to check other employees.
"Soon there will be only two companies left in the world"
At the moment, Foxconn factories employ more than a million people, and its annual turnover exceeds $130 billion, and the company is not going to stop and continues to increase production capacity. Many large corporations are still interested in its services, which are satisfied with the quality and quantity of components produced.
The company has reached such heights that Western publications joke that soon there will be only two companies left in the world, Foxconn and Wal-Mart: one of them will produce everything, and the other will sell. Statements like these confirm that Terry Gow has managed to build the corporation of her dreams by offering potential clients a willingness to do well on any given assignment.
$37.8 billion (2016)
$145.3 billion (2016)
$5.8 billion (2016)
$5.03 billion (2016)
$86.4 billion (2016)
$4.6 billion (08/09/2017)
foxconn(富士康) is the trade name of a Taiwanese company Hong Hai Precision Industry Co., Ltd.. Since 2005, it has been holding the status of the largest company in Taiwan, it employs over a million people, of which more than 700,000 are in Taiwan. It is the world's largest contract manufacturer of electronics, producing components (connectors and cases) and assembling high-tech products for other companies, which, in turn, sell products under their own brands. One of the ten largest employers in the world. Since its founding in 1974, the company has been headed by Terry Gou, he is also its largest shareholder.
Story
The company was founded by Terry Gou in 1974 in Taipei's Tucheng Industrial Zone. Initially, it produced plastic parts for televisions and was called Hon Hai Plastics Corporation. The very next year, the product range began to expand, and the name was changed to Hon Hai Industrial Corporation. In the late 1970s, computer companies in the US and Europe began to move production to Asian countries, in particular Taiwan, to reduce costs, and Gou decided to subcontract his company to the production of computer components. In 1981, Hon Hai, taking the trade name Foxconn, began to produce connectors for computer equipment, and in 1982, the production of cables was also mastered. By the end of the 1980s, most of the leading computer manufacturers had become Foxconn's customers. In 1988, Hon Hai became the first Taiwanese company to open a factory in China (wages in Taiwan were getting higher, and the competitiveness of products was decreasing accordingly). In 1991, the company went public by listing its shares on the Taiwan Stock Exchange, with Gou retaining 25% of the shares. The proceeds from the placement of shares were used for the international expansion of Hon Hai - in 1993, two more plants were opened in China, in Shenzhen and Kunshan. In 1994, Foxconn opened R&D centers in the United States and Japan. In 1996, the company launched the production of cases for personal computers, and the very next year, Foxconn became one of the world leaders in this field, customers were such companies as IBM, Dell, Apple and Compaq. In 1998, Foxconn opened factories in the UK, in 1999 - in the US and Ireland. In 2000, a factory was opened in the Czech Republic for the manufacture of cases for Apple computers, the company also bought an Intel motherboard factory in Puerto Rico and began assembling PlayStation 2 game consoles for Sony. In 2001, the production of components for mobile phones was started, in 2003 the Motorola plant in Mexico was bought.
In 2006, Hon Hai took over Premier Image Technology Corporation, a Hong Kong-based camera company. In 2007, new Foxconn factories appeared in the Czech Republic, Hungary, Mexico, Brazil, India and Vietnam.
In 2010, the opening of a plant in Russia took place. In 2012, the plant occupied rented space in Shushary, the construction of its own building was suspended for a number of reasons.
In 2016, Foxconn acquired a 66% stake in Japanese Sharp for 388.8 billion yen ($3.47 billion).
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Activity
Foxconn manufactures such well-known products as:
In addition, the company produces motherboards, cases and nettops under its own brand. foxconn.
The geographical distribution of revenue is dominated by Ireland (NT$1.45 trillion out of NT$4.36 trillion in 2016) and the US (NT$1.37 trillion); followed by Singapore (NT$374 billion), China (NT$319 billion), Japan (NT$125 billion); the home market accounts for less than 1% of revenue (NT$32 billion) .
The main products of the company:
- input and output connectors;
- connectors for motherboards (processors, memory modules, video cards);
- adapters and splitters;
- cables for local networks and computer peripherals;
- fiber optic cables and connectors to them;
- connectors with built-in microcircuits;
- housings for system units, radiators and other precision components made of metal and plastic;
- assembly of memory cards;
- assembly of mobile phones, equipment for wired and wireless local networks.
R&D spending in 2016 was NT$52 billion ($1.7 billion) .
The number of employees of the company in Taiwan in 2015 was 830 thousand, in 2016 - 727 thousand, at the end of the first quarter of 2017 - 618 thousand; thus the company carries out production automation with a radical reduction in the number of personnel. A significant part of the production capacity is located in China, in particular, in the suburbs of Shenzhen, there is a whole “Foxconn city” with an area of about 3 km², including 9 factories, dormitories, 4 swimming pools, a fire station and its own TV channel. There are also Foxconn factories in Brazil, Mexico, the USA, Turkey, the Czech Republic and some other countries.
Note. The Taiwan dollar exchange rate is approximately NT$30-32 per US$1.
Criticism
Working conditions
Accusations that the company's factories have poor working conditions have been made repeatedly. News reports reported irregular working hours, discrimination against Chinese workers by Taiwanese colleagues, and a lack of business relationships within the company. While Apple's 2007 audit found that Foxconn complied with the law in most cases, several allegations have been substantiated.
Anxiety increased in early 2012 due to a newspaper article The New York Times. Some of the allegations made in the article were confirmed during an audit conducted by the Fair Labor Association at the request of Apple. Workers were found to be consistently underpaid overtime, and there was also a high rate of occupational injury.
The Hong Kong-based non-profit organization Students and Scholars Against Corporate Misbehavior has issued a number of critical reports on how Foxconn treats its employees. The organization found much worse conditions than the Fair Labor Association's 2012 audit, however, relying on a much smaller number of respondents, between 100 and 170. The 2012 Fair Labor Association audit is based on interviews with 35,000 Foxconn employees.
In September 2012, a brawl in workers' dormitories in Taiyuan City, Shanxi Province, escalated into a riot involving 2,000 people. The riots were put down with the help of guards.
In October 2012, the company acknowledged that 14-year-old children had been working at the plant in Yantai City, Shandong Province for some time, but noted that these workers were participating in an internship program. In China, the law allows citizens to work after reaching the age of 16.
Shareholders
Affiliated companies
Links
| foxconn at Wikimedia Commons | |
| foxconn at Wikinews |
- Foxconn Worldwide official website
- Foxconn official website Russia (rus.)
Notes
- Annual Report 2016 (English) . Hon Hai Precision Industry Co., Ltd. Retrieved July 30, 2017.
- Foxconn Technology Co Ltd (2354.TW) - Quote . Reuters. Retrieved 9 August 2017.
- Jess Macy Yu. Asian tech shares boosted by Apple's robust earnings (English). Reuters (2 August 2017). Retrieved 9 August 2017.
A journalist for the Chinese newspaper Shanghai Evening Post, who worked for ten days as a simple worker on the iPhone 5 assembly line at the Foxconn factory in Taiyuan, shared his impressions of working and living conditions in a Chinese company.
An English translation of the material appeared on the pages of the micgadget.com website, and from there it was already distributed to the world media - just in time for the presentation of the iPhone 5 on Wednesday this week.
Initially, the investigator's goal was to tell about the iPhone 5, but then he decided to give a more detailed picture of the life of workers in a Chinese enterprise based on a diary he kept while working "undercover". True, the reporter was allowed directly to the production of the iPhone only on the eighth day.
The first week was spent on training and briefing, which also included signing a document stating that there was no environmental hazard at the plant. In addition, all newcomers were forced to sign an employment contract that emphasized four things that were forbidden to be revealed: secrecy concerns all technical information, sales figures, human resources, and production statistics.
Finally, the workers were introduced to the list of thirteen incentives provided for at the plant and more than seven dozen penalties. Someone raised the issue of a series of suicides at the Foxconn factories, and the management, in principle, did not refuse to discuss this unpleasant moment, but tried not to go into details.
The last two days were already spent by him at the conveyor, and the journalist could not stand it any longer. Nevertheless, he managed to find out something, writes the journalist of the British newspaper The Daily Mail Eddie Wren, quoted by the site InoPressa.ru.
"After we were trained, we were quickly sent to work, although it was already night. We were only allowed to rest during the daytime," says the brave reporter. "We reached the entrance to the production area with a warning sign: 'Secret Area'. We were told that if someone walked through the metal detector with any metal object on their body ... an alarm would sound and we would be immediately fired. Our the head warned us: "Once you sit down, you will only do what they say," the newspaper writes.
“I was instructed to mark the connections on the end cap of the iPhone 5 with a brush. The caps drove up to me on a conveyor belt every three seconds,” the author describes working conditions at the factory.
"The new worker who was sitting opposite me was exhausted and lay down for a while. The boss noticed this and punished him by putting him in a corner for 10 minutes, like in the good old school days," the Shanghai Evening Post journalist ironically.
"According to my calculations, I had to mark at least 5 covers every minute. For every ten hours of work, I was involved in the production of 3,000 iPhone 5," reports reporter Eddie Renn. The brigadier explained that this work was meant for women with nimble fingers, but because of the lack of personnel, it was also necessary to entrust it to rough male hands.
In total, as a Chinese journalist calculated, 48 workers are involved in the process of manufacturing the back cover, 12 people each on 4 assembly lines. In half a day they produce 36,000 panels. At the same time, shop supervisors literally force workers to spend two overtime hours at the assembly line, for which they will be paid an additional $ 4.
“While there is no guarantee of the authenticity of this report, we still feel that Apple fans should appreciate the hard work of Chinese workers who worked overtime to meet the target date for the release of the new iPhone,” the author of the article quotes the words of the editor who posted this material on the micgadget website. .com.
Foxconn is a trademark of Hon Hai Precision Industry Co., founded in 1973 in Taipei City, the capital of Taiwan; the company produces computer, communications and consumer electronics, as well as motherboards, cooling systems, graphics video adapters, PC cases and more. Foxconn is a world leader in electronics OEM manufacturing, directly contracting with other companies, which in turn sell products under their own brand names. Foxconn's main customers are Apple, Canon, Cisco, Dell, Intel, Nokia, Motorola, Sony and Nintendo. In total, Foxconn employs more than 1 million people in production.
Foxconn's manufacturing sites, in addition to Taiwan, are located in China, the US, the UK, Japan, Hungary, the Czech Republic, Mexico, Brazil, India, and Vietnam. The manufacturer is known for its closed technology campuses, on the territory of which there are production buildings and dormitories for employees, as well as all the necessary infrastructure. The largest of them is located in the Chinese city of Shenzhen, where about 300 thousand people work.
Foxconn and "baseless accusations"
Recall that in recent years, Hon Hai has repeatedly been criticized for the brutal exploitation of workers at its enterprises in mainland China. In particular, after a series of suicides in 2009-2011, this company had to raise salaries several times - and all so that workers working in unbearable conditions finally stopped taking their own lives. The company has installed suicide prevention networks at its manufacturing facilities and hired in-house psychologists.
Earlier this year, the Fair Labor Association, an international organization that Apple joined in January, conducted a massive audit of Foxconn's manufacturing facilities, revealing numerous violations of workers' rights. The regulator's claims were caused by an unacceptable amount of overtime, insufficient pay and unsafe working conditions.
Prior to this, the "apple" company itself conducted inspections at the enterprises of its partners. It is worth noting that Apple is the only company among the major manufacturers of high-tech products that publishes the results of such checks at all. Apple's latest report, published in 2011, showed that working conditions at factories where Apple-branded appliances are produced remain extremely difficult.
According to this document, at least 90 factories force workers to work more than 60 hours a week, thereby violating the limit set by the company itself, which, in turn, significantly exceeds the limit prescribed in Chinese law (40 hours a week). Apple also found several cases of child labor. Specialists from the Fair Labor Association over the past few months have also managed to identify many problems at Foxconn's Chinese factories.
The management of the Taiwanese company undertook to eliminate most of the violations by July 1, 2013. The company has already raised employee salaries by 16-25% and plans to hire tens of thousands of new employees to prevent overtime. This is their third pay increase since 2010, Foxconn said in a media statement released this spring.
Wages for low-level workers at factories in Shenzhen were recently raised to 1,800 yuan (about $286) and could rise to 2,200 yuan ($349) in the future if they pass the qualification exams. In 2009, the monthly earnings of such Foxconn employees did not exceed an average of 900 yuan ($143). The company also said that the wages of low-skilled workers at all its enterprises are significantly higher than the minimum wage set by the PRC authorities. For example, in the southern Chinese province of Guangdong, where Foxconn's largest manufacturing complex is located, the minimum wage has been set at 1,500 yuan since January 1.
Employees of the company, in interviews with Chinese newspapers on condition of anonymity, have repeatedly said that working conditions at Foxconn are quite harsh - management fines staff for any misconduct, in addition, many employees are forced to work overtime, often without days off. The free time of the workers is only enough for food and sleep, besides, they assemble equipment standing up almost all day, without breaks for rest.
Foxconn has always denied "baseless allegations". Representatives of the company are confident that the workers are treated according to all the rules, and their work is well paid. In addition, they repeatedly hinted to Taiwanese and Hong Kong journalists that the Chinese authorities are trying to use the investigations of Western human rights activists and the media "to blackmail Foxconn."
Company founder and CEO Terry Gow said in 2010 that the company was willing to provide journalists with access to its assembly shops so that members of the press could see for themselves the conditions in which employees work.
Meanwhile, independent experts are still confident that although the latest revelations and media attention may cause some damage to Foxconn's reputation, they most likely will not seriously affect the company's financial position, and none of the major Western customers from the services of Chinese assemblers and their Taiwanese masters will not refuse.
Moreover, Terry Gou promised the complete elimination of manual labor in his enterprises in 10 years. Modernization of production is carried out with the assistance of Sharp. Foxconn has already sent several hundred employees to Sharp's Osaka plant for training and "creating cooperation conditions." One must think that Japanese robots are not Chinese workers, and they will not kill themselves because of difficult working conditions.