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Tag: Foxconn

  • Foxconn to manufacture iPhones in India by 2024

    Foxconn to manufacture iPhones in India by 2024

    Apple’s major supplier, Foxconn, is set to commence iPhone manufacturing in the southern Indian state of Karnataka by April of next year.

    According to the state government, the project is expected to generate approximately 50,000 job opportunities.

    Foxconn, based in Taiwan, is responsible for manufacturing the majority of Apple’s iPhones. Since 2017, the company has been producing older iPhone models at a facility located in the neighboring state of Tamil Nadu.

    Recently, Foxconn acquired 1.2 million square meters of land near Bengaluru city in Karnataka, signaling its expansion plans. Bloomberg reported that the company intends to invest $700 million in a new factory in the state. However, the Karnataka government stated that the overall value of the project amounts to $1.59 billion.

    The government announcement mentioned that the land for the factory would be handed over to Foxconn by July 1. The Reuters report stated that Foxconn aims to manufacture 20 million iPhones annually at the Karnataka plant.

    Apple’s decision to diversify its supply chains and manufacture its flagship model in India is part of its strategy to reduce reliance on China amid increasing trade tensions between Beijing and Washington.

    While most iPhones are currently made in China, Apple has been assembling some models in India through various suppliers, including Foxconn. However, India accounts for only 5% of total iPhone production.

    Apple has faced challenges in the Indian market due to strong competition from more affordable South Korean and Chinese smartphones. In a bid to strengthen its presence in India, Apple CEO Tim Cook inaugurated the country’s first two Apple stores during his visit in April.

  • Foxconn: iPhone maker apologises following massive protests at China plant

    A day after its iPhone factory in China was rocked by angry protests, Apple supplier Foxconn apologised for a “technical error” in its payment systems.

    Hundreds of workers were seen marching at the world’s largest iPhone factory in Zhengzhou, with complaints about Covid restrictions and claims of unpaid wages.

    Workers were beaten by police, according to those who were livestreaming the protests.

    According to one Foxconn employee, the situation has since been resolved.

    The factory was locked down last month due to rising Covid cases, prompting some workers to break out and go home. The company then hired new employees with the promise of large bonuses.

    But one worker said these contracts were changed so they “could not get the subsidy promised“, adding that they were quarantined without food.

    On Thursday, Foxconn released a statement saying a “technical error occurred during the onboarding process”, adding that the pay of new recruits was “the same as agreed [in the] official recruitment posters”.

    The firm said it was in constant communication with the affected employees about the the pay and bonuses and was doing its best “to actively solve the concerns and reasonable demands of employees”.

    A worker also told the BBC on Thursday that he had since received 8,000 yuan ($1,120; £926) and was set to receive another 2,000 yuan. He added that there were no more protesters and that he and his colleagues would return to the Foxconn factory.

    The Zhengzhou plant employs more than 200,000 people, making Apple devices including the iPhone 14 Pro and Pro Max.

    Separately on Thursday, authorities ordered the city to go into lockdown, saying people would not be able to leave the area unless they had a negative Covid test – affecting more than six million people in the city.

    It came as China recorded its highest number of daily Covid cases since the pandemic began, with the country seeing a wave of outbreaks with several major cities like Beijing and Guangzhou affected.

    The International Monetary Fund (IMF) has called on China to recalibrate its zero-Covid strategy as its economic growth shrinks.

    The world’s second largest economy has seen its gross domestic product (GDP) fall by 2.6% in the three months to the end of June from the previous quarter.

    “Although the zero-Covid strategy has become nimbler over time, the combination of more contagious Covid variants and persistent gaps in vaccinations have led to the need for more frequent lockdowns, weighing on consumption and private investment, including in housing,” the IMF said.

    The global financial organisation also called on Beijing to vaccinate more people and offer further relief to its crisis-hit property sector.

    However, some analysts believe the IMF’s guidance will not convince China to change its policies.

    “Given that China is unlikely to be going to the IMF for help, it doesn’t really matter whether they pay attention to this statement or not,” Simon Baptist, global chief economist of The Economist Intelligence Unit, told the BBC.

  • China Covid: Protests erupt at Zhengzhou’s massive giant iPhone factory

    A footage widely circulating online, protests have erupted at the world’s largest iPhone factory in the Chinese city of Zhengzhou.

    Hundreds of workers are seen marching in videos, with some being confronted by people wearing hazmat suits and riot police.

    Workers were beaten by police, according to those who were livestreaming the protests. Clashes were also captured on video.

    Last month, Foxconn locked down the Covid cases, prompting some workers to flee and return home.

    The company then recruited new workers with the promise of generous bonuses. Foxconn has not yet commented on the latest disturbances.

    Footage shared on a livestreaming site showed workers shouting: “Defend our rights! Defend our rights!” Other workers were seen smashing surveillance cameras and windows with sticks.

    Several clips also showed workers complaining about food they had been given and saying they had not received bonuses as promised.

    “They changed the contract so that we could not get the subsidy as they had promised. They quarantine us but don’t provide food,” said one Foxconn worker during his live stream.

    “If they do not address our needs, we will keep fighting.”

    He also claimed to have seen a man “severely injured and [who] might die” after a beating from police.

    One employee who recently started working at the Zhengzhou plant also told the BBC workers were protesting because Foxconn had “changed the contract they promised”.

    He said some newly recruited workers also feared getting Covid from staff who had been there during the earlier outbreak.

    “Those workers who are protesting are wanting to get a subsidy and return home,” the staff member said.

    There was a heavy police deployment to the plant on Wednesday morning, he said.

    Other livestreamed videos also showed crowds of armed police at the site.

    Another newly recruited employee told the BBC he visited the protest scene on Wednesday where he saw “one man with blood over his head lying on the ground”.

    “I didn’t know the exact reason why people are protesting but they are mixing us new workers with old workers who were [Covid] positive,” he told the BBC.

    Foxconn, a Taiwanese firm, is Apple’s main subcontractor and its Zhengzhou plant assembles more iPhones than anywhere else in the world.

    In late October many workers fled the plant amid rising Covid cases and allegations of poor treatment of staff, their escape captured on social media as they rode lorries back to their hometowns elsewhere in the central Chinese province.

    Foxconn then attempted to convince workers to stay and to recruit new staff by offering higher salaries and bonuses.

    The firm has since enacted so-called closed loop operations at the plant – keeping it isolated from the wider city of Zhengzhou because of a Covid outbreak there.

    Earlier this month Apple said it expected lower shipments of iPhone 14 models because of the disruption to production in Zhengzhou.

  • Foxconn: Apple invests in Lordstown Motors, an electric truck company

    Foxconn, which manufactures iPhones for Apple, says it is increasing its investment in a US electric pick-up truck company that could compete with Tesla’s Cybertruck.

    The technology behemoth is investing up to $170 million (£147.8 million) in the loss-making start-up Lordstown Motors.

    The large cash infusion comes as the company plans to increase production of its first model, the Endurance.

    Lordstown recently began production of the vehicle at a former GM plant in the US state of Ohio.

    The world’s largest contract manufacturer of electronics purchased a more than 18% stake in Lordstown, making it the company’s largest investor.

    “Since announcing our first transaction with Foxconn more than a year ago, it has been our objective to develop a broad strategic partnership that leverages the capabilities of both companies,” Lordstown’s executive chairman Daniel Ninivaggi said.

    “Foxconn’s latest investment is another step in that direction,” he added.

    The two companies also said they would jointly develop an electric vehicle together, although they did not give further details of the plan.

    The tie-up came after the world’s biggest electric carmaker Tesla, which is owned by multi-billionaire Elon Musk, was earlier this month reported by the Reuters news agency to be planning to start mass production of its Cybertruck at the end of 2023.

    That would be two years after the original target for the highly-anticipated pick-up truck that Mr Musk unveiled in 2019.

    Taiwan-based Foxconn’s investment is the latest cash injection into Lordstown as it continues to run at a loss.

    Separately on Monday, figures for the three months to the end of September showed a net loss of $154.4m, wider than the $95.8m loss the company reported for the same time last year.

    Shares in Lordstown rose by almost 18% in extended trading in New York after the announcements.

    Last week Foxconn agreed a deal with Saudi Arabia’s sovereign wealth fund to produce electric vehicles in the kingdom.

    The joint venture will operate under the brand name Ceer, which sounds like the Arabic word for “drive”.

    Ceer will license technology from Germany’s BMW and aims to start selling its electric vehicles from 2025.

    The deal is part of Saudi Arabia’s push to move its economy away from its dependence on fossil fuels.

    Last month Foxconn’s chairman Liu Young-way said he hopes the company will one day make cars for Tesla as it ramps up electric vehicle manufacturing operation.

    Speaking at the company’s annual Tech Day, he said the firm aimed to replicate its success in manufacturing consumer devices as it expands into making electric vehicles for major motor industry brands.

  • Apple: iPhone shipments delayed due to China Covid lockdown

    Do you want to buy the new iPhone 14 Pro or iPhone Pro Max? Apple says you can expect longer wait times for new products.

    The tech behemoth announced that its Chinese assembly plant is now operating at a significantly reduced capacity.

    On November 2, officials shut down a district that houses Foxconn’s iPhone factory, the world’s largest, for seven days.

    Apple’s announcement comes as China reaffirms its commitment to zero Covid.

    “As we have done throughout the COVID-19 pandemic, we are prioritising the health and safety of the workers in our supply chain,” said a statement from Apple, which launched its new iPhone line in September.

    “We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products.”

     

    The announcement will likely disappoint investors who were hoping China would lift its Covid restrictions in the near future. Chinese stock markets rose sharply on Friday on the back of rumours of an end to Covid lockdowns.

    Beijing’s unyielding approach to arresting the spread of the virus has come at a huge economic cost. But the country’s leader Xi Jinping, who has personally endorsed the policy, has given no indication that it will ease soon.

    The latest figures show the world’s second-largest economy struggling to cope with prolonged challenges posed by persistent Covid restrictions, a property slump and the risk of a global recession.

    China trade figures released on Monday showed its imports and exports contracted unexpectedly in October. It is the first slump since May 2020. Outbound shipments for the month dropped 0.3% from a year earlier which is in stark contrast to a 5.7% gain in September. It was the worst performance since May 2020.

    The country reported 5,643 new Covid infections on Sunday, its highest daily tally in six months. Zhengzhou, where the Foxconn factory is located, is the capital of Henan province in central China and is home to about 10 million people. It recorded 3,683 cases and 22 deaths on Monday.

    Cases were also detected inside the factory, prompting a sudden shutdown that led to workers fleeing the premises. On Monday, the company started a recruitment drive at its Zhengzhou plant. It is offering workers who left the plant between 10 October and 5 November a one-time bonus of 500 yuan (US$69; GBP£60.88) if they return to work.

    It is also offering a pay increase of 30 yuan an hour, according to a statement posted on its recruitment WeChat account.

    Foxconn, the world’s largest contract electronic maker, has revised down its fourth quarter outlook due to China’s Covid control measures. The fourth quarter is usually a busy time for the tech company as demand for electronics rises ahead of the year-end holiday season in the West.

    The Taiwan-based company said they are working with the Henan provincial government “to stamp out the pandemic and resume production to its full capacity as quickly as possible”.

    Foxconn, formally known as Hon Hai Precision Industry, accounts for 70% of iPhone shipments globally.

  • Foxconn and Vedanta to build $19bn India chip factory

    Foxconn and Vedanta have announced $19.5bn (£16.9bn) to build one of the first chipmaking factories in India.

    The Taiwanese firm and the Indian mining giant are tying up as the government pushes to boost chip manufacturing in the country.

    Prime Minister Narendra Modi’s government announced a $10bn package last year to attract investors.

    The facility, which will be built in Mr Modi’s home state of Gujarat, has been promised incentives.

    Vedanta’s chairman Anil Agarwal said they were still on the lookout for a site – about 400 acres of land – close to Gujarat’s capital, Ahmedabad.

    But both Indian and foreign firms have struggled in the past to acquire large tracts of land for projects. And experts say that despite Mr Modi’s signature ‘Make in India’ policy – designed to attract global manufacturers – challenges remain when it comes to navigating the country’s red tape.

    Gujarat Chief Minister Bhupendrabhai Patel, however, said the project “will be met with red carpet… instead of any red tapism”.

    The project is expected to create 100,000 jobs in the state, which is headed for elections in December, where the BJP is facing stiff competition from oppositions parties.

    According to the Memorandum of Understanding, the facility is expected to start manufacturing chips within two years.

    “India’s own Silicon Valley is a step closer now,” Mr Agarwal said in a tweet.

    India has vowed to spend $30bn to overhaul its tech industry. The government said it will also expand incentives beyond the initial $10 billion for chipmakers in order to become less reliant on chip producers in places like Taiwan, the US and China.

    “Gujarat has been recognized for its industrial development, green energy, and smart cities. The improving infrastructure and the government’s active and strong support increases confidence in setting up a semiconductor factory,” according to Brian Ho, a vice president of Foxconn Semiconductor Group.

    Foxconn is the technical partner. Vedanta is financing the project as it looks to diversify its investments into the tech sector.

    Vedanta is the third company to announce plans to build a chip plant in India. A partnership between ISMC and Singapore-based IGSS Ventures also said it had signed deals to build semiconductor plants in the country over the next five years.

    Source: BBC