Feeds

iPhone manufacturer to shutter China factories

Foxconn idles up to 800,000

The essential guide to IT transformation

Foxconn – the massive Taiwan-based contract manufacturer whose clients include Apple, Dell, HP, Intel, Sony, and others – will shutter its mainland China operations in a restructuring that could move as many as 800,000 workers into the ranks of the unemployed.

This news comes by way of the Chinese-language news site ON.CC — a Google translation is available here — and couldn't immediately be independently verified.

The announcement came at a shareholders meeting of the Hon Hai Group, Foxconn's parent company. Chairman Terry Gou said that production would be withdrawn from mainland China and shifted to Taiwan, Vietnam, and India. There are currently 800,000 Foxconn workers on the mainland, and if all Foxconn manufacturing there eventually ceases, they would all be out of work.

Foxconn has been under fire recently for a series of suicides at its Shenzhen, China factory. Gou said that the Chinese government had sent 200 inspectors to the plant, which employs somewhere between 270,000 (Financial Times) and 400,000 (Steve Jobs) workers, and that Foxconn management had been exonerated.

Guo also said that the ongoing rash of suicides could be of the copy-cat variety, fueled by media coverage. He also noted that the company had suspended death benefits to remove that impetus for jumping, the favored method of suicide not only at Foxconn's Shenzhen plant, but in urban China in general.

In another bid to improve conditions at its mainland Chinese factories, Foxconn announced two substantial pay raises: a 30 per cent across-the-board raise announced last week, and a 66 per cent performance-based raise to go into effect in October.

According to ABC News the company provided no details on how performance would be evaluated. ®

Bootnote

The Reg thanks reader "JeffyPooh" for the ON.CC tip.

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.