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One Million Robots to Take Over Jobs of Foxconn Workers

by - source: Xinhua News Agency

Foxconn aims to use one million robots in three years time as part of an effort to tackle rising labor costs.

Foxconn's employment practices often make the news and the company last week hit the headlines once again. This time, it's the company's intention to use robots to replace some of its staff that has chins wagging. Xinhua News Agency cites Foxconn founder and chairman Terry Gou as saying the company plans to replace a portion of its staff with one million robots to cut rising labor expenses and improve efficiency. According to Xinhua, Foxconn currently uses 10,000 robots. the electronics giant aims to up this number to 300,000 next year and one million in three years time.

Foxconn currently employs over 900,000 people in its factories. Gou says the robots will be performing simple tasks such as spraying, welding and assembling. These are all tasks currently carried out by human employees.

Reuters cites Gartner analyst C.K. Lu who says thanks to sharply rising employment costs, Foxconn essentially has no choice but to replace workers with robots.

"Rising salary costs should be the key reason why Foxconn is doing this. This year's wage increase has been quite significant and I don't expect the pace to slow down next year," Lu said, adding, "If they don't do this, they will have to move their factories elsewhere."

Further Reading

Xinhua News Agency: Foxconn to replace workers with 1 million robots in 3 years

Reuters: Foxconn to rely more on robots; could use 1 million in 3 years

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buzznut 08/07/2011 6:15 AM
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So..how long before the robots start jumping out the windows?

MasterMace 08/07/2011 6:32 AM
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Robots are pretty dumb, so it might take 2 years for them to jump out instead of 1.

dstln 08/07/2011 6:33 AM
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Poor foxconn. Whatever would happen if they'd have to pay workers wages that don't make them want to kill themselves.

Of course the end buyers don't care either way.

kinggraves 08/07/2011 6:38 AM
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Robots making computers...how long until Foxconn changes it's name to Skynet?

Still, considering China practically drops these people into their jobs and expects them to do it for life, what happens to the laid off employees? They'd better install some trampolines because there's going to be a lot of jumping.

freggo 08/07/2011 6:41 AM
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Time for Foxconn to find a low wage country for outsourcing!
Welcome to the club :-)

jj463rd 08/07/2011 7:09 AM
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kinggraves :
Robots making computers...how long until Foxconn changes it's name to Skynet?Still, considering China practically drops these people into their jobs and expects them to do it for life, what happens to the laid off employees? They'd better install some trampolines because there's going to be a lot of jumping.



Nothing really amazing about it.I remember reading about Apple Computers building a automated robotic factory to produce the Macintosh all the way back in the early 1980's in California.
http://books.google.com/books?id=m [...] ry&f=false

Azn Cracker 08/07/2011 7:18 AM
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The Chinese are too damn expensive!

bokuden 08/07/2011 8:21 AM
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Time to move the factories to Ethiopia!

wintermint 08/07/2011 8:41 AM
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buzznut :
So..how long before the robots start jumping out the windows?



Nice one! But seriously.. they don't deserve to be overworked like this :x

randomizer 08/07/2011 9:16 AM
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Quote :Reuters cites Gartner analyst C.K. Lu who says thanks to sharply rising employment costs, Foxconn essentially has no choice but to replace workers with robots.

Option #2 was replace executives with robots.

Anonymous 08/07/2011 9:30 AM
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Yeah, Foxconn, why pay decent wages to people so that everyone in the country lives a decent life when you can fire them all and get 1,234,123,213 robots, triple your profit while 1,000,000 people are out of a job and poorer than ever. GOOD JOB, that's how this world will prosper, the rich get even richer and the poor get even poorer.

demonhorde665 08/07/2011 9:40 AM
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ikyung 08/07/2011 9:55 AM
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So American workers -> Chinese workers -> Robots. Seems like a logical transaction.

AMD X6850 08/07/2011 10:06 AM
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Quote :"If they don't do this, they will have to move their factories elsewhere."


Moving factories out of China?

leon2006 08/07/2011 10:46 AM
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Vietnam is cheaper...
The labor in Western China is cheaper
The labor in Africa is cheaper

ralfthedog 08/07/2011 10:47 AM
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With the Treasury downgrade, they may be thinking about moving to America for cheap workers.

Even without the total collapse of the US government, if they were able to someday make a totally automated factory, it would be cheaper to build it in the United States where they sell most of their iPhones. They would save in shipping cost.

Anonymous 08/07/2011 11:06 AM
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How much would it cost to make, design, and maintain robots to say with the idea of labor costs?

5k computers(system) plus must be cheaper now then then of course. Guess you can say can't wait till they are "employed" for the idea of what anything would cost for what they are making. Yes?

Might as well get say the latest computer(system) now at an even cheaper price for now, then what later might be, because, the value set of it then for what it is worth might actually only cost that for the same system, with advancements or not. Would incline great care of course, but might meet warranty "deadlines" to say. Decent care maybe, idk. For warranty or the like.

Anonymous 08/07/2011 11:15 AM
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K-zon:

How much would it cost to make, design, and maintain robots to say with the idea of labor costs?

5k computers(system) plus must be cheaper now then then of course. Guess you can say can't wait till they are "employed" for the idea of what anything would cost for what they are making. Yes?

Might as well get say the latest computer(system) now at an even cheaper price for now, then what later might be, because, the value set of it then for what it is worth might actually only cost that for the same system, with advancements or not. Would incline great care of course, but might meet warranty "deadlines" to say. Decent care maybe, idk. For warranty or the like.

Another post, loginning doesnt seem to be working. Tried to send something to the Moderators. Hopefully something went through.

Anonymous 08/07/2011 11:26 AM
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It's funny... I can't remember the source but I seem to recall hearing that even if Apple (Foxconn makes all of the "i" products) moved all of their production to the U.S. and had to paid the workers minimum wage, they'd still be making 50% profit off every unit sold.

I can see how Foxconn would be upset at the 'rising' wages. Paying people 3 even 4 dollars an hour is completely outrageous... The next thing you know, the workers are going to want to work less than 16 hour days.... sheesh...

beetlejuicegr 08/07/2011 11:36 AM
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ta152h 08/07/2011 1:01 PM
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This is the naturally evolution for China. They were cheap labor, but as the price goes up, they have the same problems other countries with higher labor have; factories move.

They're still cheaper than U.S. or most of Europe, of course, but are considerably more expensive than places nearby like Philippines. It was inevitable, and it's already happening. As their wages keep going up, companies will leave. It's not like China has a great workforce (they're leapers) or the government is easy to work with. They were cheap labor, and with that gone, so will be a lot of jobs.

Put those jobs in the Philippines, where they'll be happy to have a chance to make some money, instead of a country that is totalitarian, dishonest, and adversarial.

NuclearShadow 08/07/2011 2:53 PM
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Quote :Foxconn aims to use one million robots in three years time as part of an effort to tackle rising labor costs.


Wait, what? So they gave out those raises which was likely a PR move to counter all the bad press and now they are doing lay-offs because of the raise in cost of the labor? The raise in cost that they put upon themselves?

dcompart 08/07/2011 2:56 PM
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As the robotic workforce expands the world's unemployment will increase as well. We might end up being luck at 9.1% (granted, this is a terrible #) compared to other countries down the road.

LORD_ORION 08/07/2011 4:18 PM
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This is what doesn't make sense to me, outsource factories to China for cheap labor, but then replace workers with robots... that could and should be done in the US.

LORD_ORION 08/07/2011 4:20 PM
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dcompart :
As the robotic workforce expands the world's unemployment will increase as well. We might end up being luck at 9.1% (granted, this is a terrible #) compared to other countries down the road.



The good news is you won't be stuck doing crap mind numbing jobs.

Also the real unemployment level is around 20%, because people whose benefits run out are not counted, but still clearly unemployed.

Anonymous 08/07/2011 4:58 PM
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Plenty of unemployed people here in America who would like a job. They should outsource here.

bin1127 08/07/2011 5:01 PM
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Anything a robot can do is worth automating. Let humans do things that are worthwhile for humans.

burnley14 08/07/2011 5:03 PM
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It's too expensive now to pay Asian laborers? What is this world coming too?

malphas 08/07/2011 5:19 PM
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The actual rate of suicides at Foxconn is lower than amongst western university students, they just have a massive number of factory employees so the actual number is, and since they're strongly associated with Apple it makes for attention grabbing press.

I mean, I'm sure the conditions there are awful, but that's the case almost everywhere, normal people don't kill themselves over it, even in places like China; and there are far worse places to work, like Nigeria for instance.

Moving labour from humans to automated machinery is an inevitability in almost every industry, even without the rising wage costs China is experiencing.

sonofliberty08 08/07/2011 5:29 PM
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buzznut :
So..how long before the robots start jumping out the windows?


MasterMace :
Robots are pretty dumb, so it might take 2 years for them to jump out instead of 1.


as the robots became smarter , they will start to produce them self , and riot for fight back agains humans !!

Azn Cracker 08/07/2011 5:32 PM
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Thats why you don't make them self aware.


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