Feeds

Foxconn plans massive plant in Indonesia

Apple ODM set to expand outside of China

Build a business case: developing custom apps

Controversial hardware maker Foxconn looks set to expand its manufacturing empire outside of China by getting down to work on a 1,000 hectare site in Indonesia, which the government there hopes will be the first of a $10bn investment in the country.

There had been suggestions for weeks that the ODM was planning to set up a plant somewhere on the archipelago, but an official statement from the firm sent to Games Industry International now suggests a deal is imminent.

We are looking forward to establish a new manufacturing plant in Indonesia, although nothing is finalised yet. This will help us in manufacturing good quality products and make them available in the markets at lower prices.

With this, Indonesians will also get better employment opportunities. We will continue our efforts in establishing more manufacturing plants across the globe.

Indonesian industry minister M.S. Hidayat has been quoted as saying the total investment from Foxconn could reach anywhere from $8-10 billion over the next five years, although talking up such deals is part of the job for someone in his role.

If it all goes to plan, this will be Foxconn’s first major plant in Indonesia.

It currently has 13 factories in China employing over one million workers, and is developing some plants in Malaysia. Outside of Asia its biggest manufacturing presence is in Brazil.

As to why Foxconn is investing outside of China, a lower wage bill will certainly be one attraction of Indonesia. It says the average monthly wage there is around $100, significantly less than the 1,800 yuan ($281) paid to the basic level employee in the People’s Republic.

However, it’s not all about the money, according to Geoff Crothall, a spokesman for not-for-profit rights group China Labour Bulletin.

“Given that wages are still such a small part of the overall manufacturing cost, I don't think wage increases in China will be a major driving force for such a decision,” he told The Reg.

“A lot of major manufacturers adopt a China plus one strategy. It is not unusual for the main production base to be in China with other facilities in south-east Asia."

Foxconn is yet to reply to El Reg's request for further comment. ®

Boost IT visibility and business value

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
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
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
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
prev story

Whitepapers

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 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.