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Recommended Reading highlights the week's noteworthy writing on technology and more.
Apple may move some production to Vietnam to avoid trade tensions
Apple is reportedly shifting some iPad and MacBook production to Vietnam to reduce the potential damage from a US-China trade war.
BlackBerry phones are back, baby
The startup OnwardMobility plans to release a 5G BlackBerry smartphone in the first half of 2021.
Foxconn's contentious Wisconsin plant will be used to make ventilators
Foxconn’s dubious Wisconsin factory will be used to produce ventilators to aid in treatment for COVID-19 around the US
Apple and Foxconn admit to hiring too many temporary workers
Foxconn and Apple have admitted to using far more temporary workers than allowed by Chinese law, according to a report from Bloomberg. The violation was discovered by China Labor Watch (CLW) after a long investigation and confirmed by both Foxconn and Apple. The group said that in August, temporary "dispatch" workers made up around half the workforce in August, where Chinese labor law allows a maximum of 10 percent. Both had vowed in the past to stop the practice, multiple times.
After Math: Flipping the Switch
Nintendo wasn't the only company this week making headlines about switches. Facebook's poker playing AI turned the tables on some Texas Hold'em pros, Foxconn pulled the old switcheroo on the state of Wisconsin, and Luminar's new LiDAR is poised to turn the autonomous vehicle market on its ear.
Foxconn's Wisconsin plant opens next May with fewer jobs than promised
Foxconn's long-promised factory in Wisconsin will finally begin production in May 2020, but to start, it's only creating 1,500 jobs. That's far fewer than the 13,000 jobs it once said it would add. At this rate, Foxconn will likely lose out on hundreds of millions of dollars in state subsidies, many of which were meant to reward job creation.
Tariffs are forcing Big Tech to move production out of China
In response to the Trump administration's trade war with China, major tech companies are preparing to relocate key manufacturing operations. According to Bloomberg, Google is moving production of its US-bound Nest thermostats and motherboards to Taiwan. The Wall Street Journal reports that Nintendo is shifting at least some production of its Switch console to Southeast Asia. At the same time, China has allegedly warned companies that they will face permanent consequences if they cooperate with Trump administration trade restrictions.
Apple can make US-bound iPhones outside of China if necessary
If the trade war between the US and China spirals out of control and leads to Chinese retaliation against American tech production, is Apple hosed? Not necessarily. Senior Foxconn exec Young Liu told investors that his manufacturing company has "enough capacity" to make US-bound iPhones outside of China if necessary. About a quarter of that capacity is elsewhere, Liu said, including growing Indian production. While Apple hasn't made any moves on that front, Foxconn can shift its lines elsewhere if things go south.
Huawei reportedly scales back phone production following US ban
Huawei may be expecting to live with a US ban for a long time. South China Morning Post sources claim Foxconn has stopped Huawei phone production on "several" lines in response to reduced orders. It wasn't certain if this was a short- or long-term cut, but it came just months after Huawei's growing demand reportedly prompted Foxconn to go on a hiring spree.
Foxconn boss Terry Gou is running for president of Taiwan
Terry Gou, the billionaire founder of electronics giant Foxconn, is stepping down from his role as chairman to run for president of Taiwan. He will stand in the primaries of the Kuomintang opposition party, promoting a more China-friendly policy during what is currently a period of heightened tension with Beijing.
Foxconn pledges to still build Wisconsin factory after Trump talks
Following talks with President Trump, Foxconn says it is indeed building a factory at its Wisconsin campus. Earlier this week, the company caused a furor when it said it's shifting plans away from manufacturing to focus on a research and engineering center. Now it seems it's doing both.
Foxconn may not manufacture anything in Wisconsin after all
In 2017, Foxconn revealed plans to build a Wisconsin campus as part of a $10 billion investment that would create up to 13,000 jobs in the state. It pledged to build large-screen LCD displays there, and President Trump touted the project as a victory for his goal of reviving US manufacturing fortunes. Fast forward to 2019, and Foxconn says around three-quarters of jobs at the campus will be in design and research and development -- and it may not manufacture displays there at all.
Apple may start building the iPhone XS and XR in India next year
Apple will reportedly start building its most expensive phones, including the iPhone X, XS and XR, in India starting in 2019, according to Reuters. Assembly of the devices will take place at a plant in Sriperumbudur operated by controversial tech manufacturing firm Foxconn. Apple has struggled to gain footing in the region where the company has faced slow sales and an executive exodus.
Foxconn says it won't staff Wisconsin plant with workers from China
Last year, Foxconn, a supplier to companies like Apple and Microsoft, announced plans for a factory in Racine, Wisconsin, a deal that promised to bring a $10 billion investment and 13,000 jobs to the area. But the details of that plan have changed in the past months, and now the Wall Street Journal reports that the company is looking to bring employees over from China in order to staff the facility. Foxconn, however, has denied those reports.
Apple investigating reports of student workers in factories (again)
Apple is investigating reports that one of its parts suppliers is illegally using high school students on its assembly line. Hong Kong-based human rights group Sacom alleges that Taiwanese manufacturer Quanta Computer has been skirting labor laws by using teenage "interns" to assemble the Apple Watch Series 4.
Foxconn establishes its North American headquarters in Milwaukee
Foxconn is extending its fledgling American footprint beyond its planned display factory in Wisconsin. The tech manufacturing behemoth is establishing its North American headquarters in Milwaukee, 30 miles north of the upcoming factory. It's buying a seven-story building from Northwestern Mutual and expects 500 people to work at the facility, which will include an innovation hub to help startups create apps using its display tech. That's a drop in the bucket compared to the intend 13,000 jobs at the screen facility, but it's symbolic of the company's US presence -- it's not just dabbling this time around.
Amazon admits to labor violations at Echo speaker factory in China
Labor violations are an all too common reality in technology manufacturing, and Amazon just made that patently clear. In the wake of a joint exposé between China Labor Watch and the Guardian, Amazon has acknowledged that a Foxconn factory in Hengyang, China has been violating labor laws while making Echo speakers and Kindle e-readers. A March audit revealed that over 40 percent of staff were low-cost agency workers (who don't get holiday or sick pay and can be laid off without wages), or well over the 10 percent allowed in China. Moreover, employees who worked overtime were paid at their regular rate, rather than the time-and-a-half demanded by both Chinese laws and Amazon itself.
Foxconn buys Linksys owner Belkin to join the smart home battle
While we've focused on efforts of giants like Google, Apple and Amazon to dominate "smart home" devices, manufacturing giant Foxconn is making its entry by acquiring Belkin International to create a "global consumer electronics leader." Besides the accessories you probably associate with Belkin, it also owns other brands like WeMo, Phyn and, most notably, Linksys, which it acquired from Cisco in 2013. Every one of these internet-connected devices will need to plug into the router at some point, so it's easy to see why Foxconn would want to start there. The $866 million purchase is, however, subject to approval from the Committee on Foreign Investment in the United States. After Broadcomm was forced to give up its attempted Qualcomm acquisition, it's impossible to be certain if this deal will go through.
RED teaming with Foxconn on smaller, cheaper 8K cameras
Foxconn plans to build smaller, cheaper 8K cameras in collaboration with cinema company RED, Nikkei reports. "We will make cameras that will shoot professional-quality films in 8K resolution but at only a third of current prices and a third of current camera sizes," CEO Terry Gou told reporters. RED currently has several 8K models, including the 3.35 pound, $30,000 Epic-W 8K (above). That means Foxconn could conceivably produce an 8K camera that costs around $10,000 and weights just over a pound -- less than many DSLRs.
