Feeds

Foxconn plans massive plant in Indonesia

Apple ODM set to expand outside of China

Mobile application security vulnerability report

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. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.