Foxconn

Last updated

Hon Hai Precision Industry Co. Ltd.
  • Hon Hai Technology Group (鴻海科技集團)
  • Foxconn (富士康)
Native name
鴻海精密工業股份有限公司
Company type Public
ISIN TW0002317005
Industry Electronics
Founded20 February 1974;50 years ago (1974-02-20) (as Hon Hai Precision Industry Co., Ltd.)
Founder Terry Gou
Headquarters
Area served
Worldwide
Key people
Young Liu (chairman and president)
Products
Services Electronics manufacturing services
RevenueNT$ 6.626 trillion (2022) ~US$213.90 billion [1]
NT$ 173.78 billion (2022) ~US$5.61 billion [1]
NT$ 141.48 billion (2022) ~US$4.57 billion [1]
Total assets NT$ 4.133 trillion (2022) ~US$133.42 billion [1]
Total equity NT$ 1.650 trillion (2022) ~US$53.27 billion [1]
Number of employees
Decrease2.svg 767,062 (2022) (Taiwan employee data only) [2]
Subsidiaries
Website www.honhai.com/en-us/

Asia

Europe

Subsidiaries

FIH Mobile

FIH Mobile is a subsidiary of Foxconn, offering services such as product development and after-sales support. It was incorporated in the tax haven of the Cayman Islands in 2000. [123]

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, which started developing and selling new Nokia-branded devices in early 2017. [124] [125] The total sale to both companies amounted to US$350 million. FIH Mobile is now manufacturing new Nokia-branded devices developed by HMD. [126]

Foxtron

Foxtron (鴻華先進科技) is a joint venture of Foxconn and Yulon Group founded in 2020 for vehicular manufacturing and research and development of electric vehicles. [127] [128]

Foxlink Group is a Foxconn affiliate. [129]

Shinfox Energy

Shinfox Energy is a Foxlink Group subsidiary. [129]

Foxwell Power

Foxwell Power is a subsidiary of Shinfox Energy. Foxwell Power contracted with corporate great-grandparent Foxconn to supply 2.36 million kWh of green electricity in 2022. [129]

Controversies

Foxconn has been involved in several controversies relating to employee grievances or treatment. Foxconn has more than a million employees. [130] In China, it employed more people than any other private company as of 2011. [60]

Working conditions

Allegations of poor working conditions have been made on several occasions. News reports highlight the long working hours, [43] [44] discrimination against mainland Chinese workers by their Taiwanese co-workers, [131] and lack of working relationships at the company. [132] 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, [8] the audit did substantiate several of the allegations. [133] In May 2010, Shanghaiist reported that security guards had been caught beating factory workers. [134]

In reaction to a spate of negative press, particularly that involving worker suicides in which 14 people died [135] 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". [136] Meanwhile, however, a report jointly produced by 20 universities in Hong Kong, Taiwan, and mainland China described Foxconn factories as labour camps [137] with widespread worker abuse and illegal overtime.

Concerns increased in early 2012 by an article published in The New York Times in October 2011. [138] It reported evidence that substantiated some of the criticisms. The 2012 audit commissioned by Apple Inc. and performed by the Fair Labor Association found that workers were routinely subjected to inhumane bouts of overtime of up to 34 hours without a pay increase and suggested that debilitating workplace accidents and suicides may be common. [139] [140] A Hong Kong non-profit organisation, Students and Scholars Against Corporate Misbehaviour, has written numerous negative reports on Foxconn's treatment of its employees, such as in 2010 and 2011. [141] These typically find far worse conditions than the 2012 Fair Labour Association audit did, [142] but they rely on a far smaller number of employee informants, circa 100 to 170. [143] The Fair Labor Association audit in 2012 used interviews with 35,000 Foxconn employees. [139]

In January 2012, about 150 Foxconn employees threatened to commit a mass suicide in protest of their working conditions. [144] One worker said the protest resulted from 600 workers being moved into a new "unbearable" factory location. [145] 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. [146]

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, [147] in violation of the age limit of 16 for legal workers. [147] Foxconn said that the workers had been brought in to help deal with a labor 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. [147]

Also in October 2012, there was a crisis concerning an injured worker in which 26-year-old Zhang Tingzhen [148] suffered an electric shock and fell in a factory accident [149] a year earlier. His doctors did immediate surgery to remove part of his brain, [150] "[after which] he lost his memory and can neither speak, walk". [151] When his father attempted to get compensation in 2012, [150] Reuters reported that Foxconn told the family to transport and submit him for a disability assessment in Huizhou 70 km away, or it would cut off funding for his treatment. [148] His doctors protested the move for fear of a brain haemorrhage en route, [151] and the company stated that it was acting within labour laws. [149] [152] His family later sued Foxconn in 2012 and argued in court that Tingzhen had been summoned to the wrong city. [148] In 2014, a court ruled that he had to be assessed in Huizhou to receive compensation, with Foxconn offering a settlement for the father to recant his criticisms, which was refused. [150]

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. [153]

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, violating the 40-hour-per-week mandate for children. In response, Foxconn announced that it has stopped the interns' illegal overtime work at the factory in which 3,000 students had been hired that September. [154]

Since 2016, Foxconn has been replacing its workforce with robots, which have replaced 50% of Foxconn's labor force in 2016, and there are plans for completely automated factories. [155]

In 2019, a report was issued by Taiwan News stating that some of Foxconn's managers had fraudulently used rejected parts to build iPhones. [156]

In late 2022, working conditions were exacerbated by Zero-COVID policies leading to protests. [157] [158] [159]

Suicides

Suicides among Foxconn workers have attracted the media's attention. [160] 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 [161] prototype in his possession. [162] According to The Telegraph , Danyong had been beaten by security guards. [145]

There was also a series of suicides speculatively linked to low pay in 2010, though employees also noted that Foxconn paid higher wages than similar jobs. [160] In reaction to a spate of worker suicides in which 14 people died in 2010, [135] Foxconn installed suicide-prevention netting at the base of buildings in some facilities [163] and promised to offer substantially higher wages at its Shenzhen production bases. [164] 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. [145]

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. [145] In 2012 and into 2013, three young Foxconn employees were reported to have died by jumping off buildings. [145] 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. [145]

The Wisconsin Valley Project

The project originally committed in 2017 to investing $10 billion and employing up to 13,000 workers but has now shrunk to $672 million with 1,454 jobs.

Food poisoning

On 15 December 2021, 256 workers at Foxconn's Sriperumbudur factory developed Acute Diarrhoeal Disease due to food poisoning after eating food at the company-provided hostel. As a result of which, 159 workers were hospitalized. [165] The workers were provided no information about this, due to which a rumor started spreading among the workers through WhatsApp that two workers had died. [166] By 17 December there were sit-in protests in worker dormitories, by 10 pm of the same day, thousands of women workers of the factory staged protests on the Chennai-Bengaluru national highway, [167] this was met by police detention of 67 women protestors and arrest of one journalist, with many of them being released a day later. [168] Following the protests the factory was shut down for a week, with the state government and district administration investigating the worker conditions. On 22 December the Food Safety Department sealed the kitchen of the dormitory [169] finding rats and poor drainage. The rooms provided to workers were overcrowded, with them being forced to sleep on the floor, some even lacking toilets with a running water supply. [170] Following the revelation of substandard living conditions, on 29 December Apple put the Foxconn plant on probation, with both Apple and Foxconn issuing statements on the dormitory and dining rooms conditions. [171] In January 2022, after assuring Apple and the Tamil Nadu government that it had taken the necessary corrective measures, Foxconn began reopening its factory and resuming work in phases. [172] [173]

Mobility in Harmony Consortium

The Mobility in Harmony Consortium was created in 2020 by Foxconn to promote a set of open standards for electric vehicles. [174]

See also

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Further reading

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Foxconn
Traditional Chinese 鴻海精密工業股份有限公司
Simplified Chinese 鸿海精密工业股份有限公司
Literal meaningHon Hai Precision Industry Co., Ltd.