| Type | Public |
|---|---|
| Traded as | TWSE: 2317 SEHK: 2038 LSE: HHPD NASDAQ: HNHPF |
| Industry | Electronics manufacturing services |
| Founded | 1974 |
| Headquarters | Tucheng District, New Taipei, Republic of China (Taiwan) |
| Area served | Global |
| Key people | Terry Gou (Chairman and President) |
| Products | Various |
| Revenue | US$ 59.3 billion (2010)[1] 4.1% from 2008 |
| Net income | US$ 2.2 billion (2010)[1] 31.1% from 2008 |
| Employees | 920,000+ (2010)[2] |
| Website | Foxconn.com |
The Foxconn Technology Group (traditional Chinese: 富士康科技集團; simplified Chinese: 富士康科技集团) is a multinational business group anchored by the Hon Hai Precision Industry Co., Ltd. (Chinese: 鴻海精密工業股份有限公司; LSE: HHPD), a Taiwan-registered corporation headquartered in Tucheng, New Taipei, Taiwan. Foxconn is the world's largest maker of electronic components[3] including printed circuit boards.[4]
Due to its dominance in this specialized outsourcing sector, it is popular with European, Japanese, and American companies wishing to reduce labor costs without sacrificing quality. Well-known products Foxconn manufactures include the iPhone,[5] the iPad,[6] the PlayStation 3, the Xbox 360, the Wii, and the Amazon Kindle. It is the largest exporter in Greater China and the second largest exporter in the Czech Republic.[7]
Foxconn has been involved in several controversies – most relating to how it manages employees in China, where it is the largest private employer.[8]
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Hon Hai Precision Industry Co Ltd was founded in 1974 as a manufacturer of electrical components (notably electrical connectors for computer components,[5] which found use in the Atari 2600,[9] etc.) by Terry Gou.[5] Foxconn was first a trade name of Hon Hai and is now named a Hon Hai subsidiary.[5]
Hon Hai's first manufacturing plant in Mainland China opened in Longhua, Shenzhen in 1988.[5] Now the company's largest operation, 300,000[10] to 450,000[2] workers are employed in Shenzhen at the Longhua Science & Technology Park, a cramped, walled campus[5] sometimes referred to as "Foxconn City"[11] or "iPod City".[12] Covering about 1.16 square miles (3 square km),[13] it includes 15 factories,[11] worker dormitories, a swimming pool,[14] a fire brigade,[5] and a downtown complete with a grocery store, bank, restaurants, bookstore, and hospital.[5] While some workers live in surrounding towns and villages, others live and work inside the complex,[15] which broadcasts its own television network, Foxconn TV.[5]
Foxconn manufactures consumer electronics for a number of well-known companies, including:
Allegations of employee mistreatment have been made on a number of occasions. News reports highlight the long working hours,[11][13] discrimination of mainland Chinese workers by their Taiwanese co-workers,[21] and lack of working relationships at the company.[22]
Chen Long, a 23 year old assembly worker, died from overwork. He worked 60 hours a week and was often encouraged by his parents to resign from Foxconn, alarmed with the epidemic of suicides and general misfortune surrounding the company. Chen Long was also required to work increasing increments over a year and once fainted in the street months prior to his death. He joined the company in 2010.[23]
In 2006 the Daily Mail accused it of abusive employment practices.[24] Although Foxconn was found to be compliant in the majority of areas when Apple audited the maker of its iPods and iPhones,[5] the audit did substantiate a few of the allegations.[25]
Sun Danyong, a 25-year-old male, committed suicide in July 2009 after reporting the loss of an iPhone 4[26] prototype in his possession.[27]
In reaction to a spate of worker suicides where fourteen died in 2010,[20] a report by 20 Chinese universities described Foxconn factories as labour camps and detailed widespread worker abuse and illegal overtime.[28] In response to the suicides, Foxconn installed suicide-prevention netting at some facilities,[24] and it promised to offer substantially higher wages at its Shenzhen production bases.[29] Workers were also forced to sign a legally binding document guaranteeing that they would not kill themselves.[30]
On May 20, 2011 an explosion and fire broke out at a factory in Chengdu. The incident caused three deaths and injured fifteen people. It occurred on and impacted the iPad 2 assembly line.
A fire broke out at the Foxconn Yantai complex in Shandong province at around 10am on September 27, 2011. No casualties were reported and production was not impacted. The fire occurred at the Yantai economic technology development zone where nearly 80,000 worked.[31][32] The fire started due to improper operation of workmanship with color paint chemicals.[33]
Around 250 workers at a Foxconn factory in Chennai, India following respiratory ailments caused by the routine spraying of pesticide at the facility. No casualties were reported.[34]
Foxconn factories, making consumer electronics, are scattered throughout the world.
Foxconn has 13 factories in nine cities, more than in any other country.[35] Planned factories include sites at Chengdu in Sichuan province, Wuhan in Hubei province, and Zhengzhou in Henan province.[35]
It has factories in Slovakia,[8] Poland[8] and Czech Republic.[7]
The company has an operation in the Special Economic Zone of Chennai, Tamil Nadu.[36]
Facilities in Mexico include a site in San Jerónimo, Chihuahua, which assembles computers, and two Juárez facilities–a former Motorola production base that makes mobile phones,[37] and a set-top box factory purchased from Cisco Systems.[38] LCD televisions are also made in the country by Foxconn.[39]
All existing and currently planned Foxconn facilities in the South American continent are located in Brazil,[40] including mobile phone factories in Manaus and Indaiatuba as well as production bases in Jundiai, Sorocaba, and Santa Rita do Sapucaí.[41] The company is considering more investments in Brazil.[8]
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