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Foxconn Considering Moving Production to Taiwan

By - Source: Tom's Hardware US | B 48 comments

Foxconn is reportedly considering moving some of its manufacturing to Taiwan.

Foxconn has been in the press a lot over the last few weeks because of a bout of suicides at one of its factories. The company has given raises; put nets up around the buildings to stop jumpers; hired councilors and exorcists; given more raises; and issued workers with a 'no-suicide' contract (though they took that one back because it was a little insensitive). Today we learn that the company is considering moving some of its operations to Taiwan and other countries. However, it is not immediately clear if the suicides play any role in this decision.

AppleInsider reports that Chinese-language ON.CC broke the news earlier this week, citing sources who attended the annual shareholders meeting of Hon Hai Precision (the parent company of Foxconn). If true, the move would see much of the mainland China operations moved to countries like India, Taiwan and Vietnam.

The Irish Times cites Foxconn head Terry Gou who supposedly told shareholders that the existing China factory model might not be sustainable because of a rise in production costs in China. This, coupled with an economic slowdown in Taiwan, could make the prospect of a move more attractive.

Affecting as many as 800,000 employees, the move would include the Shenzhen location that has been embroiled in controversy as of late. AppleInsider reports that Foxconn and Hon Hai have confirmed none of the information from the translated ON.CC article.

(Apple Insider and Irish Times)

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Top Comments
  • 26 Hide
    tat2demon , June 11, 2010 7:24 PM
    Foxcon - "We are happy to announce a 300% pay increase for all employees. Now youre fired."
  • 23 Hide
    FUtomNOreg , June 11, 2010 7:26 PM
    Maybe they should build their next factory underground.
  • 18 Hide
    eklipz330 , June 11, 2010 6:49 PM
    thrust2nightI meant people from other countries commit suicides.

    right under comments, there's a big red buttong that says "Add your comment". Now right under that, it says Read the comments on the forums". You can edit your post there.
Other Comments
  • 3 Hide
    christopherknapp , June 11, 2010 6:39 PM
    Oh great ... taller buildings.
  • -9 Hide
    thrust2night , June 11, 2010 6:47 PM
    Great. Now we'll have people from other companies commit suicides. Don't fix the problems Foxconn, just run away from it and subject other people to it and leave the existing 800,000 people to fend for themselves. The Chinese government should do something good and stop them from leaving and fix the problems.
  • 18 Hide
    eklipz330 , June 11, 2010 6:49 PM
    thrust2nightI meant people from other countries commit suicides.

    right under comments, there's a big red buttong that says "Add your comment". Now right under that, it says Read the comments on the forums". You can edit your post there.
  • 6 Hide
    aeurix , June 11, 2010 6:53 PM
    I'm sure the 800,000 have a big thank you gesture for those who railed the company now... sometimes bad work is better than no work.
  • 6 Hide
    mikeadelic , June 11, 2010 7:13 PM
    misisupergumsideways thinking about job? Get to work Lazy man and eat your rotten fish and rice. Make sure you clean computers before you ship them overseas so smell will gone away?! Ha? How about that?!Actually I am very happy about those people getting job in Taiwan.

    Hey look guys, a retard!
  • 26 Hide
    tat2demon , June 11, 2010 7:24 PM
    Foxcon - "We are happy to announce a 300% pay increase for all employees. Now youre fired."
  • 7 Hide
    robcope1965 , June 11, 2010 7:25 PM
    thrust2nightGreat. Now we'll have people from other companies commit suicides. Don't fix the problems Foxconn, just run away from it and subject other people to it and leave the existing 800,000 people to fend for themselves. The Chinese government should do something good and stop them from leaving and fix the problems.

    I would like to know why a country should have the right to stop a company from moving? It is not the place of any government to meddle in the affairs of a private company, with the exception of passing laws requiring adaquate working conditions and fair pay. This is why our country is going into the toilet.
  • 23 Hide
    FUtomNOreg , June 11, 2010 7:26 PM
    Maybe they should build their next factory underground.
  • 4 Hide
    Tmanishere , June 11, 2010 7:33 PM
    Quote:
    No you cannot edit your posts anymore.

    Edit: ok so now you can. A few days ago you can't.



    You still can't on Tom's Guide. You can on Tom's Hardware Forum.
  • 11 Hide
    dark_lord69 , June 11, 2010 7:35 PM
    "put nets up around the buildings to stop jumpers"
    That is ridiculous.

    "hired councilors and exorcists"
    Exorcists? To get rid of the DEMONS?! LOL what a joke.

    1st fix - Let them sit in a chair
    2nd fix - Let them talk to eachother and build social relationships
    3rd fix - Let them work 8 hours if they want more money then allow them to work more - make it a choice. You can have 3 shifts which combined will allow for a total of 24 hours so the factory never closes. Plus it will allow them to employ more people, thus giving more people money helping the local economy.
    4th fix - Be more flexable with bathroom breaks and copy the required break/lunch model of the United States

    Apply the raises with all 4 fixes above and the suicides will stop. It's not that hard I don't understand why they can't get it right.
  • 11 Hide
    Anonymous , June 11, 2010 7:37 PM
    Globalized capitalism is such a wonderful thing... First the western workers deal with jobs moving to China and now the jobs get shuffled around Asia looking for the most exploitable population. Eventually Sub-Sahara Africa will be the most lucrative place for manufacturing to go!
  • 6 Hide
    Anonymous , June 11, 2010 7:50 PM
    Interestingly, The Epoch Times (a globally distributed expatriate Chinese paper) says that the Foxconn suicide stories are gaining national and now international coverage as part of an attack on the company by a local entrepreneur who is senior in the local Communist Party. He runs the competing BYD company which has already poached senior staff from Foxconn.

    Apparently this pattern is quite common in China, Taiwanese companies come in and open up, but once they are successful local startups undercut and then muscle them out.
  • -8 Hide
    figgus , June 11, 2010 8:01 PM
    Democrats, pay attention!!! This is what happens when you meddle with the market. It's happened in the US, now it is happening in China. When are you going to finally "get it"?

    Companies value shop just like individuals do. We don't want to pay extra for finished goods, and they don't want to pay extra for labor. If Apple started charging $14000 for an iPhone, Motorola would start killing them in sales. When a product is too expensive, it prices itself out of the market... and the same exact rules apply to labor.

    If you overcharge your customers, they shop elsewhere. Period.

    I'm sure the 8000 FoxConn workers will be ecstatic to be huddled in a ricefield again hoping to grow enough to eat and maybe a little bit to sell. If that option was so great, they wouldn't have started working at FoxConn to begin with.
  • -3 Hide
    Anonymous , June 11, 2010 8:35 PM
    "The Irish Times cites Foxconn head Terry Gou who supposedly told shareholders that the existing China factory model might not be sustainable because of a rise in production costs in China. This, coupled with an economic slowdown in Taiwan, could make the prospect of a move more attractive."

    Ahhhh... Yes, the corporate model: Always chasing cheap labor and vulnerable workers to exploit...


    Figgus: Yeah, gosh darn democrats trying to regulate big business... If only BP weren't so over-regulated... When are you Republican douches going to realize that SOMEBODY needs to regulate business into doing what's best for the public, rather than letting corporations regulate themselves, ie: Cut every corner possible, use the cheapest labor, cheapest materials, don't waste money on safety equipment, etc...
  • 3 Hide
    figgus , June 11, 2010 8:47 PM
    Core_Poor_8"The Irish Times cites Foxconn head Terry Gou who supposedly told shareholders that the existing China factory model might not be sustainable because of a rise in production costs in China. This, coupled with an economic slowdown in Taiwan, could make the prospect of a move more attractive."Ahhhh... Yes, the corporate model: Always chasing cheap labor and vulnerable workers to exploit...Figgus: Yeah, gosh darn democrats trying to regulate big business... If only BP weren't so over-regulated... When are you Republican douches going to realize that SOMEBODY needs to regulate business into doing what's best for the public, rather than letting corporations regulate themselves, ie: Cut every corner possible, use the cheapest labor, cheapest materials, don't waste money on safety equipment, etc...

    The only entertaining part of your rant was the bit where you assumed I was Republican. It gave me a chuckle.

    And you can stamp your little feet all you want. If you get unreasonable with a business, it will just move. That's why America's manufacturing base is so completely screwed right now. Haven't you been paying attention?
  • 6 Hide
    Anonymous , June 11, 2010 9:17 PM
    @figgus

    yeah they should be so thankful that they should start sacrificing virgins @ the altar of foxxconn every month

    paying the workers more wont mean an increase in your iPhones and what haves, it means apple and foxxconn execs will make a whole lot less money

    and im pretty sure they wouldn't mind working in the rice field growing their own food, sure they wont be making a heck lot of money but hey it gets them by and by, except their farmlands had been seized by the government turned into a development zone so the likes of foxxconn could go and plonk their great big apartment complex/fab plant on, so the only way to feed themselves now is to work for the company that stole the land that was once their to work on, and they call that progress.....
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