Chinese authorities have launched investigations into several sites of Foxconn Technology Group, the world’s largest electronics contract manufacturer and a key supplier of Apple’s iPhones. The probe, focusing on tax and land use issues, encompasses Foxconn’s facilities in southern Guangdong province and Jiangsu in the east, as well as its land use in central Hunan and Hubei provinces. While the specifics of the investigation remain undisclosed, the timing, just months before Taiwan’s presidential elections, has sparked concerns about political motives.

Foxconn, also known as Hon Hai Precision Industry, responded to the allegations, stating, “Compliance with the law is a basic principle for our group worldwide.” The company pledged active cooperation with relevant authorities but refrained from divulging further details. This development comes at a crucial juncture for Taiwan as it prepares for its upcoming elections in January.

Critics have questioned the investigation’s timing, linking it to the political landscape in Taiwan. Foxconn’s founder, billionaire Terry Gou Tai-ming, who has distanced himself from the company to pursue an independent candidacy in the 2024 presidential elections, has faced scrutiny. Gou, who failed to secure the opposition Kuomintang party’s nomination in 2019, is perceived by some as having close ties with mainland China’s leadership. Despite these allegations, Gou has asserted his independence from Beijing’s influence.

The Taiwanese government swiftly came to Foxconn’s defense, emphasizing that Taiwanese businesses should be shielded from “political interference.” Deputy Premier Cheng Wen-tsan criticized Beijing’s actions, stating, “We do not want Chinese factors to influence the elections.” Premier Chen Chien-jen echoed these sentiments, reaffirming the government’s commitment to supporting Taiwanese businesses amidst the ongoing investigations.

Foxconn, renowned for its massive workforce and technological prowess, operates as China’s largest private-sector employer, employing over a million workers nationwide. Its importance in the global electronics supply chain adds weight to the concerns surrounding the investigation’s potential impact on the industry.

As the situation unfolds, the international community remains watchful, observing the developments in both the investigations and the upcoming Taiwanese elections. 

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(via)

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Apple recently unveiled its highly anticipated iPhone 15 series at an event. The new models have already won over users with their features and the fact that price increase rumors proved to be unfounded. This will only further increase the company’s already high expectations, as Foxconn Zhengzhou plant ramps up hiring efforts in China. Here are the details…

World’s Largest iPhone Factory Hires New Workers for iPhone 15 Series

The world’s largest iPhone factory is ramping up hiring because the recent launch of the iPhone 15. Foxconn is offering signing bonuses of up to 8,000 yuan to attract new workers. The plant, which is nicknamed “iPhone City,” covers an area of 5.6 square kilometers and employs some 200,000 workers at full capacity. It is responsible for assembling the majority of iPhones sold worldwide.

Foxconn’s hiring spree comes after the company experienced labor shortages and production disruptions last year due to China’s strict Covid-19 controls. The company was forced to temporarily close the plant in Zhengzhou for several weeks, which delayed the rollout of the iPhone 14. This year, Foxconn is hoping to avoid a repeat of last year’s problems.

The company is also facing increased competition from other smartphone manufacturers, such as Huawei, which are looking to move production out of China. By ramping up hiring in China, Foxconn is hoping to ensure that it has the necessary workforce in place to meet the ongoing demand for iPhone 15 series.

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China has just recently ordered a seven day long lockdown in a region, which is also where Foxconn Technology has its largest iPhone plant. This would likely affect Apple shipments as its largest suppliers biggest plant is down for a week.

According to a BusinessStandard report, the Chinese government has implemented a lockdown around Foxconn’s main iPhone plant in Zhengzhou. The lockdown is currently in effect and will last until the 9th of November 2022. This news was also published on the local government’s official WeChat account. As of right now, the government has barred all vehicles to operate in the region of the lockdown, except those that are carrying essential goods. The lockdown was implemented in Zhengzhou after the area saw a sizeable jump to 359 COVID-19 cases on Tuesday. This was up from just 95 from a just a day prior.

The sudden lockdown is a part of China initiative of Covid Zero approach to controlling each outbreak. Now, Foxconn’s main iPhone plant was unfortunately caught in this zone and has had its operations abruptly halted. The Taiwanese company is the largest supplier in Apple’s supply chain and has had to force some of its 200,000 strong staff into quarantine. Furthermore, some were pushed to flee the site, with some even leaving on foot. Following this lockdown, the company will also face complications to recruit and bring in new staff members.

Foxconn would even be troubled to ship production materials to continue their operations. At the moment, neither Foxconn or Apple has given out any statement regarding this news. Although, the former is working on raising wages and arranging backups from its other Chinese plants to mitigate this sudden operations disruption in its Zhengzhou iPhone assembly line. While Apple has just launched its iPhone 14 lineup, it refrained from bumping orders due to an ongoing economic slump, which has led to a decline in smartphone sales.

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Foxconn, one of the primary Apple suppliers, has apparently paused its operations in China. The company has halted iPhone production due to the ongoing lockdown caused by a new wave of Coronavirus outbreak.

According to a Bloomberg report, Foxconn had to halt its operations in the region because of the recent lockdowns. Although, the company has managed to relocate production to other sites that are still operating at the moment, to offset the impact of the lockdown on its production. The lockdown is expected to be in effect till March 20 and was initially started by the Chinese government after more than 3,000 cases of COVID-19 were reported on Sunday (13th March 2022).

So now, the local government put the 17.5 million residents of Shenzhen, China into lockdown. Various forms of public transport like buses and subway systems have been closed and business are only allowed to operate for providing essential services. While Foxconn’s production takes a hit, Apple would also face the impact of the lockdown, alongside other tech firms that rely on its facilities to manufacture their products.

Although the report also points at the demand for products being low since the season follows right after the peak holiday season, Apple had just launched a number of new products recently. This includes the iPhone SE (2022), fifth gen iPad Air, and Mac Studio. So, early buyers might face delays in shipments over the ongoing lockdown in China.

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Foxconn Electronics is working on a new project which will have it build a new advanced semiconductor assembly and test plant in Qingdao, northeast China. The project will have the company invest 60 billion Yuan (roughly 8.6 billion US Dollars).

The known Apple supplier is building a new chip plant in China, which is also being co-funded by a state backed Rongkong Group. According to the DigiTimes report, sources close to the matter have revealed the multi billion dollar project investment that the Foxconn is making to build a new pant dedicated to provide advanced packaging technologies. This includes fan out and wafer level bonding and stacking for chip solutions

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The applications of these chips will be used in 5G networking and various AI related device applications as well. The source added that the upcoming Foxconn Qingdao plant will be ready for production in 2021 and is already planning on scaling up its output to commercial capacities by 2025. This new site is designed for a capacity of 30,000 12 inch wafers every month.

Furthermore, the move for a new plant from Foxconn is indicative of its efforts to grow its semiconductor business. It will also boost the company’s deployment that will have it make an impact on the semiconductor industry. Interestingly, Foxconn has also recently struck deals with China’s local governments for its participation in local chipmaking sectors.

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The father of Foxconn worker has suing Foxconn. Foxconn is one of gadget manufacturer in China is considered to be responsible for the disease.

Zhang Tingzhen, as reported has left brain disability. Nearly half a brain should be removed through surgery.

Suffering 26-year-old engineer was revealed to the public after Reuters preach Foxconn, send SMS to Tingzhen family, said it would cut the cost of treatment.

In order to continue to receive benefits, the provision of Foxconn, sick employees should be transferred to a hospital in the city of Shenzhen. The family also had to take care of illness and disability in the office Huizhou. While the office is very far away from the residence Tingzhen.

“In addition, my son also worked at the Foxconn Shenzhen, not in Huizhou. Huizhou own office, wages and compensation lower than in Shenzhen,” said the father.

With the help of a lawyer, the family was able to collect evidence that Tingzhen was supposed to get decent health benefits. But there has been no response whatsoever from the Foxconn.

Labor activists in China said, was the case Tingzhen is one example of fraudulent practices against employees commonly performed major companies in the China.

Foxconn often highlighted the issue of the treatment of the workers in the company. A number of cases of this iPhone assembly plant coloring ranging from welfare and working conditions were poor until the mass suicide incident.

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Thousands of workers at the Foxconn factory in China is reportedly undertaking a massive demonstration. According to China Labor Watch, that demonstration conducted since Foxconn manufacturer turned a blind eye to employee violence, and won’t provide proper training despite high product quality expectations.

In addition, also assume that despite having high expectations of the quality of products, Foxconn is not considered worthy of service training to its employees.

In this demonstration, there were four thousand Foxconn employees who were forced overtime on holidays. Those employees on average worked in the quality control is responsible for overseeing the quality of the production. The employee admitted to having physical violence, and the Foxconn considered silent on the issue.

And, due to the action, the production of the iPhone 5 reportedly had been halted. Previously, there were also complaints from the owners of the iPhone 5, which says that the iPhone 5 back cover easily scratched.

The problem is not the first time. Only a couple weeks after Apple made its iPhone 5 announcement in mid-September, Foxconn employees rioted, shutting down one of its largest plants in China. According to reports, a number of people were hospitalized after the riot was finally broken up by police.

Updated : Foxconn has issued a statement denying reports of a worker strike that stopped iPhone 5 production, reports Reuters.

“Any reports that there has been an employee strike are inaccurate,” the company said in an emailed statement, adding that “there has been no workplace stoppage in that facility or any other Foxconn facility and production has continued on schedule”.

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