3. WHAT IS FOXCONN?
“Foxconn” Originally trade name of Hon Hai
Subsidiary officially received the name later
Activities include:
R&D
Production and distribution of computer components
Production and distribution of consumer electronic products
Contracts with large amount of big names in electronics
4. HISTORY
2001: Foxconn starts producing “Intel” motherboards
2007: Announced plans $500 million plant in Southern china
2012: Tien Chong Cheng Chief executive
But: Health problems Resignation
2012: Announced investment of $494 million
5 new factories in Brazil
10,000 jobs
5. PRESENT
Assembles around 40% of all consumer electronics products sold
13 factories in 9 chinese cities
Factories in Asia, Europe, Mexico and South America
Largest factory in Longhua, Shenzhen
“Foxconn City”
Between 230,000 and 450,000 employees
15 factories
Company dorms, swimming pool, fire brigade
Own TV network + City centre
6. FUTURE
Factories are planned at sites in Chengdu and Wuhan
More investments in Brazil considered
Plans to invest $30 million over two years for manufacturing facility in
Pennsylvania for robotic equipment
$10 million investment into R&D Carnegie Mellon university
9. IN REALITY
Employees a slave
Overtime
Long working shifts
Pressure to produce
It’s all about money
Low salaries
$0.65 meal allowance
Employees live in crowded
company dorms
10. THE NUMBERS
1.2 million employees
in China
17 reported suicides12 hours in a typical
work shift
83.2 hours overtime
worked
(average/month)
91 cases of underage
labor found
Manufactured 40% of
all consumer
electronics worldwide
70 psychiatrists
employed to prevent
suicides
Nets around buildings
to prevent more
suicides
12. FINANCIAL
Average salary of US$150 per month
In 2008: Foxconn’s total payroll expenditures for that year amounted to
US$1.44 Billion, or just 2.6% of all consumer sales from China.