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Foxconn

From Alfawiki
Hon Hai Precision Industry Co., Ltd.
Company typePublic
IndustryElectronics contract manufacturing
Founded1 January 1974; 52 years ago (1974-01-01) in Taipei, Taiwan
FounderTerry Gou
Headquarters
Tucheng District, New Taipei City
,
Taiwan
Area served
Worldwide (notably United States, Canada, China, Finland, Japan)
Key people
Young Liu (Chairman)
ProductsConsumer electronics including BlackBerry, iPad, iPhone, iPod, Amazon Kindle, Nintendo consoles (GameCube onward), Sega consoles, Nokia handsets (HMD Global), Cisco products, Sony devices (PlayStation consoles), Google Pixel smartphones, Xiaomi gadgets, Microsoft Xbox; CPU sockets including TR4 socket
Number of employees
Approximately 400,000+ (estimated from largest facility workforce)
ParentNone
Websitewww.foxconn.com

Hon Hai Precision Industry Co., Ltd. (), operating under the name Hon Hai Technology Group () in Taiwan, Foxconn Technology Group () within China, and internationally recognized simply as Foxconn, is a Taiwanese multinational company specializing in electronics contract manufacturing. Established in 1974, its main office is located in Tucheng District, New Taipei City, Taiwan. In 2023, the firm achieved annual revenues of (US$192.38 billion) and secured the 20th position on the 2023 Fortune Global 500 list. It holds the distinction of being the largest electronics contract manufacturer worldwide. Although its headquarters are in Taiwan, the majority of its income is generated through operations in China, positioning Foxconn among the globe’s top employers.

Founded by Terry Gou, Foxconn produces electronic devices for leading corporations across regions including the United States, Canada, China, Finland, and Japan. Its product portfolio encompasses notable items such as the BlackBerry, iPad, iPhone, iPod, Amazon Kindle, all Nintendo gaming consoles from the GameCube onward, various Nintendo DS models, Sega gaming systems, Nokia handsets produced by HMD Global, products from Cisco, numerous devices by Sony including most PlayStation consoles, Google Pixel smartphones, Xiaomi gadgets, and next-generation versions of Microsoft's Xbox. Additionally, Foxconn manufactures multiple CPU sockets like the TR4 socket. By 2012, it was responsible for producing approximately 40% of consumer electronics globally.

In July 2019, Young Liu took over as chairman from founder Terry Gou. Before this appointment, Liu led Foxconn’s semiconductor division and acted as a special assistant to Gou. This transition in leadership marked a strategic pivot toward expanding semiconductor production and focusing on emerging technologies such as artificial intelligence, robotics, and autonomous vehicles amid a maturing smartphone assembly market.

For the second quarter of 2024, Foxconn reported revenues of NT$1.551 trillion (US$31.17 billion). Circuits Assembly magazine recognized Foxconn as the world’s largest electronics manufacturing services provider for the 14th year running.

History

Hon Hai Precision Industry Co., Ltd. was established in 1974 by Terry Gou in Taipei, Taiwan, originally focusing on manufacturing electrical components. The company inaugurated its first manufacturing facility in China in 1988, located in Longhua Town, Shenzhen.

A significant development occurred in 2001 when Intel selected Foxconn as the producer of its Intel-branded motherboards, taking over from Asus. By November 2007, Foxconn revealed plans to invest US$500 million in a new factory situated in Huizhou, Southern China.

In January 2012, Tien Chong (Terry) Cheng assumed the role of CEO at FIH Mobile Limited, a Foxconn subsidiary. At that period, Foxconn was responsible for nearly 40% of the worldwide consumer electronics output.

Foxconn broadened its reach with a strategic acquisition in March 2012, purchasing a 10% stake in the Japanese electronics company Sharp Corporation for US$806 million. The company also intended to acquire up to half of Sharp’s LCD production from the Sakai plant. However, the agreement faced challenges due to a decline in Sharp’s stock value. Later that year, in September 2012, Foxconn announced an investment of US$494 million to establish five factories in Itu, Brazil, generating around 10,000 employment opportunities.

In 2014, Foxconn expanded into telecommunications by acquiring Asia Pacific Telecom and obtaining licenses to operate 4G networks within Taiwan.

On 25 February 2016, Sharp agreed to Foxconn’s takeover proposal valued at ¥700 billion (approximately US$6.24 billion), granting Foxconn control of over two-thirds of Sharp’s voting shares. After uncovering previously undisclosed liabilities, Foxconn initially attempted to pause the acquisition; nevertheless, founder Terry Gou insisted on proceeding. The transaction was completed on 30 March 2016 at a reduced price.

In 2016, Foxconn collaborated with Tencent and Harmony New Energy Auto to create Future Mobility, with the goal of producing premium all-electric autonomous vehicles by 2020. On 26 March 2018, Foxconn Interconnect Technology acquired Belkin International for $866 million.

Liu Young-Way was appointed as chairman of Foxconn in July 2019.

During the COVID-19 pandemic on 5 February 2020, Foxconn commenced manufacturing medical masks and protective clothing at its Shenzhen plant to address both internal requirements and global shortages.

Facing Taiwan’s vaccine scarcity in mid-2021, Terry Gou’s Yongling Foundation partnered with semiconductor manufacturer TSMC to facilitate vaccine procurement. By July 2021, Foxconn and TSMC had secured an agreement to purchase 10 million doses of the BioNTech COVID-19 vaccine for Taiwan's immunization efforts at a cost of up to $175 million.

In 2024, driven by growth in artificial intelligence and cloud computing sectors, Foxconn reported record-breaking revenue for the fourth quarter.

International operations

Foxconn maintains a presence through 137 campuses and offices spanning 24 countries. Its primary manufacturing sites are concentrated across East Asia, complemented by additional plants located in Brazil, India, Europe, and Mexico.

China

By 2012, Foxconn operated twelve factories distributed among nine cities within China—the largest cluster worldwide.

The most extensive facility is situated in Longhua Subdistrict, Shenzhen. Known as "Foxconn City," this complex employs between 230,000 and 450,000 workers at the Longhua Science & Technology Park. Encompassing approximately , it consists of fifteen factories along with employee dormitories, recreational amenities, a dedicated fire brigade, an internal television network, and a centralized area providing essential services. Around one-quarter of the workforce resides on-site.

Another significant site is Zhengzhou Technology Park located in Zhengzhou city within Henan province. In 2012 it employed about 120,000 personnel; by November 2022 this number had grown to approximately 200,000. This facility is responsible for manufacturing the majority of Apple’s iPhone models and is commonly referred to as "iPhone City." Foxconn produces iPhones through its integrated Digital Product Business Group (iDPBG).

Events

Foxconn is advancing its growth strategy by establishing new facilities across several Chinese cities, including Wuhan in Hubei province, Kunshan in Jiangsu province, Tianjin, Beijing, Huizhou, and Guangzhou within Guangdong province. A significant Foxconn division that produces Apple products operates out of Hongfujin.

On 25 May 2016, Foxconn announced it would replace approximately 60,000 workers as automation increasingly took over numerous manufacturing roles.

In September 2017, Foxconn reached an agreement with the Nanjing municipal government to invest $5.7 billion in the development of intelligent terminal devices, LCD technology, and associated research initiatives.

During a Covid-19 outbreak at the Zhengzhou Technology Park on 21 October 2022, Foxconn scaled back operations at its iPhone assembly facility, which included shutting down onsite dining services. By the end of October, strict Covid containment measures led to employees escaping by climbing fences. On 2 November, authorities imposed a lockdown on the Zhengzhou Airport Economy Zone where the factory is situated. On 23 November, workers staged protests against severe Covid restrictions and unpaid wages they claimed were promised; these demonstrations reportedly resulted in confrontations with law enforcement that circulated widely on social media.

Brazil

Foxconn's entire South American presence is concentrated in Brazil, where it operates mobile phone manufacturing plants in Manaus and Indaiatuba, along with production centers located in Jundiaí, Sorocaba, and Santa Rita do Sapucaí. The company is actively exploring additional investment opportunities within Brazil.

Europe

Foxconn maintains manufacturing operations in Hungary, Slovakia, and the Czech Republic. As of 2011, it ranked as the second-largest exporter in the Czech Republic.

India

By early 2015, Foxconn had formed a partnership with Sony to produce televisions for India’s market through Competition Team Technology (India) Private Limited near Chennai; this facility was relocated to Oragadam (Kanchipuram) in 2019. The company engaged in negotiations to manufacture Apple’s iPhone domestically and unveiled plans for twelve factories aimed at generating approximately one million jobs. Foxconn also pursued expansion through collaboration with the Adani Group, invested in Snapdeal in August 2015, and commenced production with Gionee in 2016. iPhone manufacturing began at Sriperumbudur near Chennai in 2017, reaching mass production capabilities by April 2019. Chairman Terry Gou identified Chennai as a strategic manufacturing hub.

In September 2022, Foxconn signed a $21 billion agreement with Vedanta Group to build a semiconductor facility in Gujarat but withdrew from the venture by July 2023 due to various complications. By August 2023, India represented over 5% of Foxconn’s global business with intentions for further investment. The company aims to employ two million individuals and achieve $10 billion in mobile phone exports by 2030.

To realize these objectives, three manufacturing plants are currently under construction in southern India: a semiconductor and component facility near Chennai and two additional plants near Bangalore (close to Kempegowda International Airport) and Hyderabad (Kongara Kalan), which will produce iPhones, iPads, iPods, and AirPods. These factories are projected to become operational by late 2024 and are expected to employ roughly 400,000 workers within five years.

In November 2023, Foxconn declared a $1.54 billion investment dedicated to supporting its Indian operations. In August 2024, Chairman Young Liu met with Telangana Chief Minister A Revanth Reddy to discuss potential investments and plans for developing a new "fourth city" near Hyderabad.

Japan

Foxconn and Sharp Corporation collaboratively manage two large-scale television manufacturing facilities located in Sakai, Osaka. During Sharp's restructuring process in 2012, the possibility of transferring ownership of these plants to Foxconn was explored, with Foxconn expressing interest. The transaction was completed in August 2016 for $3.8 billion.

Malaysia

By 2011, Foxconn had established at least seven manufacturing sites within Johor state at Kulai, where it developed an industrial complex comprising four factories equipped with fully automated assembly and packaging systems.

Mexico

Foxconn operates a computer assembly plant in San Jerónimo, Chihuahua along with two additional facilities in Juárez, including a former Motorola mobile phone manufacturing site and a set-top box factory acquired from Cisco Systems. The production of LCD televisions takes place in Tijuana at a facility purchased from Sony.

On 2 June 2022, Foxconn revealed that its Tijuana plant, which manufactures consumer electronics, medical devices, and industrial equipment, was affected by a ransomware attack that interrupted operations.

South Korea

In June 2014, Foxconn invested $377 million to obtain a 4.9 percent ownership stake in the South Korean IT services company SK C&C.

United States

On 26 July 2017, Foxconn announced plans to construct a $10 billion television manufacturing facility in southeastern Wisconsin, projecting an initial workforce of 3,000 employees with an eventual goal of 13,000. The agreement included subsidies between $3 billion and $4.8 billion—the largest ever awarded to a foreign company in U.S. history. Over a 15-year period, Foxconn’s contribution to Wisconsin’s GDP is estimated at $51.5 billion; however, economists have expressed doubts regarding the projected economic benefits and job creation figures.

Governor Scott Walker waived the requirement for Foxconn to submit an environmental impact assessment, prompting criticism from environmental advocates concerned about air quality and the company's daily extraction of 7 million gallons of water from Lake Michigan. In response, Foxconn pledged $30 million toward zero liquid discharge technology and agreed to restore wetlands at a ratio exceeding that required of other companies.

In October 2017, Foxconn committed to situating the factory in Mount Pleasant, Wisconsin, with groundbreaking occurring in June 2018 and President Trump attending to highlight American manufacturing efforts. By January 2019, however, Foxconn reconsidered producing LCD screens at this location due to elevated labor costs in the United States.

A revised agreement reached in April 2021 scaled back Foxconn’s planned investment to $672 million while reducing new job creation to 1,454 positions and lowering tax incentives to $8 million.

In October 2021, Lordstown Motors sold a former General Motors facility to Foxconn for $230 million (finalized price), where Foxconn will act as contract manufacturer for Lordstown’s Endurance pickup truck. Additionally, Foxconn invested $50 million in Lordstown through the acquisition of common stock.

Major customers

Below is an alphabetical list of significant current and previous customers of Foxconn, organized by company name and country of origin.

North America

Asia

Europe

  • HMD Global (Finland) – operating under the Nokia brand, rebranded as HMD since 2024

FIH Mobile

Established in 2000 and incorporated in the Cayman Islands, FIH Mobile is a Foxconn-owned company specializing in product development and post-sale support services. On 18 May 2016, it acquired Microsoft's feature phone division, including the manufacturing plant located in Hanoi, Vietnam. The remaining operations were transferred to Finland-based HMD Global, which began producing and marketing Nokia-branded phones in early 2017. The total transaction value for both entities reached US$350 million. FIH Mobile is responsible for manufacturing the new Nokia devices designed by HMD.

Foxtron

Foxtron () represents a collaborative venture formed in 2020 between Foxconn and Yulon Group, focusing on the development and production of electric vehicles.

Sharp

Sharp Corporation (シャープ株式会社, Shāpu Kabushiki-gaisha) is a Japanese electronics manufacturer headquartered in Sakai, Osaka. Founded by Tokuji Hayakawa in 1912 in Honjo, Tokyo, and later established as Hayakawa Metal Works Institute in Abeno, Osaka in 1924, Sharp has been majority-owned by Foxconn since 2016.

Controversies

As of 2011, Foxconn employed over one million individuals, making it China's largest private sector employer. However, the company has been subject to numerous criticisms concerning labor practices.

Working conditions

Various reports have drawn attention to extended working hours, instances of discrimination against mainland Chinese workers by Taiwanese staff, and strained workplace dynamics. Apple's audit conducted in 2007 found Foxconn largely compliant but acknowledged some of the allegations. In May 2010, incidents were reported where security personnel physically assaulted factory workers.

Following a series of suicides among employees in early 2010, Apple CEO Steve Jobs defended Foxconn against claims of being a sweatshop. Nonetheless, a collaborative study from universities across Hong Kong, Taiwan, and mainland China characterized Foxconn factories as labor camps marked by widespread mistreatment and unlawful overtime practices.

An October 2011 article by the New York Times along with a 2012 Fair Labor Association audit revealed routine excessive overtime—sometimes exceeding 34 hours without additional pay—and identified frequent workplace accidents and suicides. Non-governmental organizations reported even harsher conditions but based their findings on fewer interviews. The FLA audit included interviews with approximately 35,000 employees.

In January 2012, around 150 workers threatened collective suicide due to intolerable conditions after being relocated to a new factory site. Later that year in September, a dormitory altercation escalated into a riot involving approximately 2,000 participants.

In October 2012, Foxconn acknowledged employing minors aged 14 briefly through an internship program that violated China's minimum legal working age of 16. The company attributed this to labor shortages and committed to reducing weekly overtime from 20 hours to under nine hours.

Also during 2012, employee Zhang Tingzhen sustained severe brain injuries in a factory accident; disputes over his compensation highlighted challenges in Foxconn’s handling of injured workers and led to legal proceedings.

In February 2015, an official from the All-China Federation of Trade Unions accused Foxconn of imposing excessive overtime that contributed to worker fatalities; Foxconn responded by stating that employees voluntarily sought overtime for additional income.

In November 2017, the Financial Times revealed that students were working unauthorized overtime at the iPhone X manufacturing facility in Henan province; following this exposure, Foxconn ceased such practices.

Since 2016, Foxconn has replaced half its workforce with robotic automation and aims to fully automate its factories eventually.

Reports from Taiwan News in 2019 indicated some managerial staff engaged in fraudulent activities involving the use of rejected components to assemble iPhones.

Towards the end of 2022, worker unrest intensified at Foxconn's Zhengzhou plant amid China's Zero-COVID policies, resulting in protests as well as detentions and physical confrontations with authorities.

Suicides

The issue of suicides among Foxconn employees has attracted considerable media scrutiny. An early incident involved Sun Danyong, a 25-year-old who reportedly died by suicide in 2009 after losing an iPhone 4 prototype. It was reported that he had been physically assaulted by security personnel.[1]

In 2010, a series of suicides—totaling 14 that year—prompted speculation about links to inadequate wages, although some workers stated that Foxconn’s pay was higher than comparable positions.[2] In reaction, the company implemented suicide-prevention nets at certain sites and committed to significant salary increases at its Shenzhen factories.[3][4] In 2011, Foxconn engaged the public relations agency Burson-Marsteller to handle adverse media coverage. Although the installation of nets appeared to reduce fatalities, at least four employees continued to die by jumping from company buildings.[1]

In January 2012, approximately 150 workers in Wuhan staged protests over working conditions, threatening mass suicide if their demands were not addressed.[1] Between 2012 and 2013, three additional young workers died by jumping from buildings.[1] Another tragic event occurred in January 2018 when Li Ming, a 31-year-old employee, jumped from a building in Zhengzhou, where the iPhone X was manufactured.[1]

The Wisconsin Valley Project

Initially announced in 2017 with a planned investment of $10 billion and an anticipated workforce of up to 13,000 employees, the project has since been reduced to an investment of $672 million and a workforce of 1,454 jobs.

Food poisoning

On 15 December 2021, an outbreak of Acute Diarrhoeal Disease affected 256 workers at Foxconn’s Sriperumbudur facility due to contaminated meals provided in company hostels, leading to 159 hospital admissions. Poor communication fueled rumors of deaths, which triggered worker demonstrations by 17 December, including sit-ins and a major protest on the Chennai-Bengaluru highway. Authorities detained 67 female protesters and arrested one journalist; most detainees were released within a day. The factory was closed for one week while investigations into the conditions were conducted.

On 22 December, the Food Safety Department shut down the dormitory kitchen after discovering rat infestations and inadequate drainage. Worker housing was found to be overcrowded; some employees were forced to sleep on floors without sufficient toilet facilities or running water. Following these findings, Apple placed the Foxconn plant under probation on 29 December. Both Apple and Foxconn issued statements addressing concerns about dormitory living conditions and meal quality.

In January 2022, after providing assurances to Apple and Tamil Nadu officials regarding corrective measures, Foxconn initiated a gradual reopening of the factory.

Various corporate collaborations

In 2020, Foxconn initiated the Mobility in Harmony Consortium, which advocates for open standards within the electric vehicle (EV) sector. That same year, the company launched the MIH Alliance to encourage cooperation across the EV industry, drawing participation from more than 2,200 enterprises. Foxconn revealed intentions to grow its role as a contract assembler for electric vehicles and formed alliances with Fiat Chrysler Automobiles and Yulon Group to penetrate the EV market. During Hon Hai Tech Day (HHTD) 2021, Foxconn introduced three in-house developed EV models: the Model C recreational vehicle, Model E sedan, and Model T electric bus.

In January 2021, a joint venture was established between Foxconn and Geely Holding Group to deliver OEM and consulting services globally for vehicles, components, intelligent driving systems, and automotive ecosystems. The following month, Foxconn entered into an agreement with EV startup Fisker Inc. to jointly manufacture over 250,000 vehicles each year. By March, Foxtron—a Foxconn-Yulon joint venture—collaborated with Nidec to advance development of critical EV components.

Foxconn broadened its EV-related investments through multiple partnerships and financial engagements: teaming up with CTBC Financial Holding in July 2021 to establish an EV-focused investment fund; injecting $36 million into Gigasolar Materials for battery material production; working alongside Thailand’s PTT Public Co. on a $1–2 billion EV joint venture; and joining forces with Gogoro on battery swapping innovations and Smart Scooter technology. In October 2021, Foxconn acquired a former General Motors facility from Lordstown Motors intended for manufacturing Lordstown’s Endurance pickup trucks as well as Fisker vehicles.

By January 2022, Foxconn had signed a memorandum of understanding with Indonesian collaborators aimed at building a sustainable energy ecosystem centered on batteries and electric transportation. The Lordstown plant acquisition was finalized by May 2022, alongside formalized manufacturing and joint venture agreements with Lordstown Motors.

Beyond EVs, Foxconn expanded semiconductor production capabilities targeting automotive and healthcare electronics markets. In May 2021, it co-founded XSemi Corporation with Yageo Group to develop and market semiconductor products. August 2021 saw Foxconn acquire Macronix’s 6-inch wafer fabrication facility for $90.8 million.

In February 2022, Foxconn partnered with Vedanta Limited to produce semiconductors in India; however, it withdrew from this agreement in July 2023. In April 2022, Foxconn purchased wireless telecommunications company arQana Technologies—later rebranded as "iCana"—and merged with IC designer AchernarTek to enhance semiconductor innovation for automotive applications and 5G infrastructure. September 2022 marked a collaboration between Foxtron and Luxgen to launch the Luxgen n7 electric SUV.

See also

Further reading

  • Ngai, Pun, and Jenny Chan. "Global capital, the state, and Chinese workers: The Foxconn experience." Modern China 38.4 (2012): 383–410.

External links

  1. ↑ 1.0 1.1 1.2 1.3 1.4 Cite error: Invalid <ref> tag; no text was provided for refs named TECHT
  2. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named CNET
  3. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  4. ↑ "Foxconn To Raise Wages Again at China Plant". Reuters. 2010-10-01.
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