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Intel is spending $20 billion to build a massive chip-making facility in Ohio
Intel CEO Pat Gelsinger is expecting it to become "the largest silicon manufacturing location on the planet."
GM's US factories will switch to renewable energy five years ahead of schedule
GM has announced that it will be five years ahead of schedule on plans to use 100 percent renewable energy.
Students allegedly being forced to work in Chinese tech factories
Despite the efforts of major technology corporations, such as Apple and Samsung, to improve labor conditions in China, major problems are still slipping through the cracks. Now, as The Wall Street Journal writes, some Chinese students in their teenage years are reportedly being forced by their schools to work about 12 hours per day, six days a week, on factory assembly lines in that country. It gets worse, though. According to a 16-year-old student who spoke to The Wall Street Journal, she was told to either "spend summer making computers" for an HP supplier or wave goodbye to the chance of graduating from her vocational school. She's only one of thousands of teenagers going through this situation, per the report.
EVE Evolved: Making ISK from the Crius release
EVE Online's economy has been studied over the years for its resemblance to the real world, and it is often cited as an example of a hyper-capitalist society with no laws or regulation. But underneath the emergent interplay of supply and demand that has fueled everything from freighter businesses to virtual investment banks, EVE is ultimately a game. The biggest influence on the markets by far has always been CCP Games and the changes it deploys in expansions, which shake the universe up and force players to adapt to new circumstances. There's always money to be made from major gameplay changes, and accurately predicting how an expansion will impact on the market can put you on the head of a short-lived but very lucrative gold rush. Though EVE's updates now come in the form of ten smaller releases per year, the upcoming Crius release scheduled for July 22nd has practically a whole expansion's worth of changes to industry and research. That gives you just over two weeks to prepare for the change, train any skills you might need, and figure out how to cash in on EVE's industrial revolution. In this edition of EVE Evolved, I run down some tips for how to prepare for the upcoming industry revamp in Crius and make some ISK.
Samsung issues 'deep apology' over illnesses and deaths of factory workers
Samsung has admitted it didn't respond quickly enough to deal with illnesses and deaths of workers at its Korean semiconductor plants, Yonhap News reports. Following a string of recent accidents at its manufacturing facilities and an ongoing dispute over hazardous working conditions, which may have caused over fifty employees to contract leukemia and other incurable diseases, Samsung CEO Kwon Oh-hyun has gone on record to issue an official apology. "We should have settled the issue earlier," admitted Kwon. "We are deeply heartbroken that we failed to do so and express our deep apology." In a bid to put things right, Samsung says it will employ a third party to "make due compensation" to victims and their families. The company also intends to bring in a outside agency to conduct health and safety inspections of its chip plants to stop similar incidents from occurring in the future.
Independent medical team finds no link between employee death and Apple supplier Pegatron's working conditions
After a 15-year-old worker died of pneumonia at Pegatron, a Chinese supplier, Apple had an independent team of medical experts sent to the facility to verify working conditions, Bloomberg reports. The worker had previously been cleared as healthy just a month prior to his death. An official Apple statement on the matter reads, "While they have found no evidence of any link to working conditions there, we realize that is of little comfort to the families who have lost their loved ones. We have a team working with Pegatron at their facility to ensure that conditions meet our high standards." This isn't exactly the first time that Apple -- or any large electronics manufacturer, for that matter -- has faced concerns over manufacturing practices. Foxconn, one of Apple's largest suppliers, has had an ongoing battle with employee suicides and allegations of unsatisfactory working conditions.
HP tells Chinese factories to stop raiding schools for cheap labor
We know that HP's Chinese sub-contractors enjoy a spot of opera on the production line. What's always been harder to determine though, is who those workers are and what employment rights they have. In an effort to preempt the sort of headlines that have afflicted other brands, HP has issued new guidelines to its Chinese partners -- including Foxconn -- designed to limit the use of students and temporary personnel and give those people more control over their hours. Students often seek work during vacations, but high schools close to factories have also been known to pressure their pupils into taking on shifts during bouts of heavy demand -- even if it's to the detriment of their studies. That won't do for a global manufacturer that needs to be seen as education friendly, so from now on "interns" will only be accepted for work that tallies with their course area, and the School Administrator will just have to find his kickbacks elsewhere.
Foxconn to allow union elections
For the first time ever, Foxconn is reportedly allowing its workers to elect union representatives. A Telegraph UK report says Foxconn will hold elections for a union chairman and 20 members of the Federation of Labour Unions Committee. Elections will take place every five years. Both Foxconn and Apple have been criticized for poor working conditions, excessive overtime and low pay in the Chinese manufacturer's factories. In response, Apple has started releasing regular Supplier Responsibility Progress Reports and has worked with the Fair Labor Association to improve Foxconn's work environment.
Samsung's report on Chinese suppliers makes for grim reading, especially between the lines
On the face of it, Samsung's latest report on working conditions at the factories of its Chinese suppliers follows just the kind of careful, lawyer-scrutinized language we'd expect from a big multinational. It repeats the manufacturer's earlier insistence that no children have been employed, while at the same time admitting that there have been "several instances of inadequate practices at the facilities" concerning workers being made to do too much overtime, not being given proper contracts, and being fined if they turn up late or are absent -- issues which had already been revealed at one supplier, and which Samsung promises to fix by the end of 2014. Burrow further into the document, however, and Samsung's list of promised "corrective actions" implies that its internal investigation has uncovered evidence of other serious problems. These include "physical and verbal abuse," sexual harassment, a lack of first-aid equipment and inadequate safety training. Some information is also conspicuous by its absence -- at least in the short report linked below -- including clarity on how widespread any of these failings were among the 109 companies (and 65,000 employees) that have now been audited. Did they crop up at just a handful of factories, or were they endemic across China? We have no idea, but given how much data Samsung has now dutifully amassed, it surely does. We've asked the company for more detail and will update if we hear back.
Rethink delivers Baxter the friendly worker robot, prepares us for our future metal overlords (video)
No one would characterize existing factory robots as especially warm and fuzzy: they're usually disembodied limbs that are more likely to cut you than hug you. Rethink Robotics wants to put a friendly face on those machines, both figuratively and literally. Its about-to-ship Baxter worker robot carries a touchscreen face that's as much about communicating its intent as giving humans something more relatable. Likewise, it's designed to be easily programmed by its organic coworkers and react appropriately -- you guide Baxter by one of its two arms to tell it what to do, and its combination of cameras and a quad-core processor let it adapt to real-world imperfections. Even the series elastic actuators in its arms give it a softer, subtler movement that's less likely to damage products or people. While Baxter isn't as ruthlessly quick as most of its peers, the relatively low $22,000 price and promise of an SDK for its Linux brain in 2013 should make it easier to accept than the six-digit costs and closed platforms of alternatives. We just hope we're not being lulled into a false sense of security as lovable robots invade our manufacturing base ahead of the inevitable Robopocalypse. [Thanks to everyone who sent this in]
Canon and Panasonic halt production in China amid anti-Japan protests
Canon could be facing a costly drop in production of both its digital cameras and laser printers, following reports that widespread protests in China have forced it close most of its factories in that country. It's a similar story at Panasonic, which is said to have had one of its plants "sabotaged" by Chinese workers. The anti-Japan protests concern the status of disputed islands in the East China Sea and were triggered by the Japanese government's move to purchase some of the land in question -- check the More Coverage link below for a more detailed explanation.
Intel invests in display manufacturers, predicts 'majority' of Ultrabooks will have touch in 2013 (update)
Intel is presenting at the e21 Forum at Computex in Taipei, and SVP Tom Kilroy just announced that the company is planning to focus on touch-enabled Ultrabooks, investing in factories that produce panels that are 13 inches and larger. Some of the partners listed included TPK, Wintek, HannsTouch and Cando, several of which are based here in Taiwan. This of course marks a departure from last year's models, many of which featured 11-inch displays, and didn't include touch functionality. Kilroy made a point of emphasizing that Intel won't be stopping at 13 inches either, opting to produce larger-screened Ultrabooks as well -- which seems to be in line with what we heard back at CES. Either way, touch is here to stay. Update: We caught up with Tom Kilroy following the keynote, and he further explained the investment, suggesting that it's an "insurance policy" to motivate display manufacturers to increase large-panel production, even though there may not yet be demand. He also predicted that the "majority" of Ultrabooks shipping in 2013 will include touch panels, though he also said that there will continue to be a market for non-touch devices for some time to come. Check the press release below for more info. Show full PR text Intel, Industry Shaping Future Of Computing Experiences On Intel® Architecture Intel Corporation Senior Vice President Tom Kilroy officially introduced the next wave of Ultrabook™ systems during a keynote address at Computex Taipei 2012. Making a bold statement around the importance of touch technology, Kilroy also announced that Intel has signed agreements with several leading touch panel manufacturers to ensure adequate capacity to meet the expected demand for touch-enabled Ultrabook experiences over the next several years. He also highlighted the company's efforts to deliver user-centric experiences across a range of mobile devices from the Ultrabook to smartphones and tablets, pointing to momentum across all three. More than 35 new ultra-sleek, ultra-responsive Ultrabook systems are available now or will be for purchase within 30 days, with more than 110 designs expected in the next year. Powered by 3rd generation Intel® Core™ processors and made with the world's most advanced 22nm 3-D tri-gate transistors, these new Ultrabook devices are more responsive and offer enhanced security in a selection of stylish designs for consumers and business users. "Our life experiences are defined by our senses -- by what we see, hear and touch," said Kilroy. "These human senses are also at the foundation of Intel's vision for the Ultrabook to deliver a no-compromise, must-have computing experience. "Today, thanks to the work of the industry at-large, we are one step closer to meeting that vision with the arrival of the next wave of 3rd generation Intel Core processor-powered devices. The innovation must continue as we move to touch-based Ultrabook convertible designs, and in the future aim to give them and other devices senses, making our interaction with them natural and intuitive." Next Wave of Ultrabook Devices Bring More Responsiveness, Enhanced Security In addition to increased responsiveness and enhanced security features, Ultrabook devices powered by the new 3rd generation Intel Core processors deliver up to two times the media and graphics performance compared to the previous generation, long battery life and offer more choice of stylish, thin designs.
Research suggests Apple could afford to build iPhones in the US
According to reports, Steve Jobs told President Obama about Apple's plan to manufacture its devices in China, saying, "Those jobs ain't coming back." But a new report argues that making Apple devices in the United States is at least feasible. A publication from the University of Manchester says that if Apple brought its operation back to the United States, it would be able to still make a gross margin of at least 50% on the iPhone. The catch? That's less than Apple's making right now, and the company would need to pay US wages for the eight hours of labor it takes to make each iPhone. So it's a question of priorities -- at this point, Apple has no problem sending more money overseas, as long as it can keep its huge margin on hardware sold. The report concludes that, while the current arrangement is great for Apple and its stockholders, the company's cash hoard doesn't bode well for the US economy as a whole, and only marginally benefits China. After building such a profitable manufacturing plan, it's doubtful Apple will reconsider and think about bringing iPhone factories back to the US. But it would certainly be better for this country and its economy in the future.
Marketplace takes a look at how the iPad is made and who, exactly, builds it
The unique privilege of jumpsuiting up and prowling the Foxconn factory floor may be reserved for the likes of Tim Cook and Nightline's Bill Weir, but thanks to American Public Media's Marketplace, we can all take a peek at the iPad production line. The above video is part of Rob Schmitz' ongoing look at Foxconn's factory conditions. Schmitz is partially responsible for debunking Mike Daisey's "theatrical" deception, and now hopes to educate readers on the reality of Foxconn's Longhua facility."When I gave examples of some of the American media coverage of the working conditions at Foxconn, many workers laughed, telling me it's not really that bad" Schmitz writes. "But that doesn't mean the workers don't have complaints." Through a series of interviews, Schmitz unveils how workers feel about their supervisors, jobs, pay, family back home and their dreams for the future. So, how's that iPad made? Check out the source link below, and find out.
Apple and Foxconn agree to drastically improve working conditions following Fair Labor Association report
The Fair Labor Association has released its findings from the lengthy investigation of working conditions at Foxconn's Chinese plants where Apple products are made. While the PR and report largely avoid over the top rhetoric and direct condemnations of the companies, they hardly paint a rosy picture. The watchdog found that in the last year all three factories violated not just FLA code for hours worked, but Chinese legal limits of 36 hours of overtime per month. During peak periods, employees worked more than 60 hours a week on average and many more than seven days in a row. But, to its credit, the group has extracted an agreement out of both Apple and Foxconn to drastically improve conditions at the factories.Foxconn has agreed to meet FLA and Chinese legal codes by July of 2013, including cutting the number of monthly overtime hours from 80 to 36. To compensate for the lost work hours the manufacturer will boost wages and plans to hire thousands of new workers to help maintain current production levels. A concerted effort is also planned to improve the safety and health conditions at the plants and their accompanying dormitories. The moves may be felt here in the US as small increases in the cost of electronic goods, but the price will be easy to swallow considering the weight it'll help lift off our conscience. Hit up the source link to read the full report for yourself and check out the PR after the break.
Protesters aimed to deliver new letter to Apple during shareholders meeting
Protestors delivered letters to Apple Stores around the world asking Apple to re-examine its use of Foxconn production factories overseas. Apple decided (relatedly or otherwise) to step up its inspections of those factories, so you probably won't be surprised to hear that protestors planned to do it all again. SumOfUs aimed to deliver a letter to Apple during its recent shareholder meeting, allegedly written by two factory workers who claim they were poisoned while working on the line. The protest and the meeting were both held the morning of February 23, so hopefully the handoff went off without a hitch. Apple hasn't officially acknowledged these protests, and I'm sure it would rather not have these kinds of claims bouncing around in public. Still, Apple hasn't been closed off to the issue; the company often runs inspections on overseas factories and has consistently said that every facility where its products are built adheres to all standard regulations. So far, all these protestors have asked for is to "reform working conditions," but exactly what that means, or what form of action that might mean for Apple, is unclear. As long as these protestors remain civil and Apple continues to hear their concerns and act on them as best it can, hopefully everyone will do what's right for any workers dealing with unfair or possibly harmful conditions at these plants.
Factory workers claim Foxconn hid underage employees prior to inspection
No doubt you watched Nightline's special edition about Shenzhen's Foxconn factory where workers assemble iPhones, iPads and Macs. If you missed it, you can watch it online at ABC's website (US only). As we noted last night, the documentary showed a rather clean Foxconn factory filled with young, Chinese workers. Missing from the show, says Debby Sze Wan Chan of Students & Scholars Against Corporate Misbehavior (SACOM), were the underage workers who Foxconn hid during the Fair Labor Association (FLA) inspection. Speaking to AppleInsider, Chan said "All underage workers, between 16-17 years old, were not assigned any overtime work and some of them were even sent to other departments." She claims two workers in the Zhenghou plant told her Foxconn was "prepared for the inspection." A similar sentiment was expressed by FLA president Auret van Heerden who said he expects Foxconn to put on a show. Despite Foxconn's careful presentation, van Heerden asserts the FLA's bottom-up interviews could uncover any issues in the factory. It's worthy to note that Apple is a member of the FLA, paid US$250,000 to join the group and funded this latest round of inspections. Though Apple works with the FLA, Chan claims she has received a cold shoulder from the company. No one within Apple has responded to her requests; supposedly the company even refused to receive reports, documentaries and petition cards from her when she traveled to Apple's California headquarters. A security guard who escorted her out of the building at One Infinite Loop took the paperwork and promised to deliver the items to someone in charge, but she has not heard back from Apple. Speaking at a recent Goldman Sachs technology conference, Apple CEO Tim Cook told the audience that Apple is working to address underage labor, safety issues, and excessive overtime at its contract factories. Chan, though, doubts Apple has "any commitments to do so."
ABC's iFactory report shows life at Foxconn
Update: You can now watch this full episode on ABC.com. (US only, of course) I just finished watching the ABC Nightline report cleverly named iFactory: Inside Apple. ABC's Bill Weir was given unprecedented access to Foxconn, where iPhones, iPads and Macs are assembled. If you've been following this saga for a while, there wasn't that much new here. It was good to see ABC provide some context as to why people go to work at Foxconn, and the report provided some background on working conditions at the plant. Weir starts off touching upon the Apple mythos, then goes straight into how our iDevices are made. For example, it takes 141 steps to make an iPhone. Something that surprised him: Apple products are largely made by hand. Weir points to a tiny iPad camera module, noting that with two 12-hour shifts each day Foxconn can crank out 300,000 of those in a day. According to ABC it takes 5 days and over 300 hands to assemble an iPad, but they aren't made by robots, they are made by people. Mostly young people. "No one looked over 30," observed Weir. In fact, Weir was there on a day when thousands of young people lined up to apply for work at Foxconn. What was remarkable was that the only requirement seemed to be a valid national ID card. But, as Weir points out again and again, the demand for Apple products is so high that Foxconn can't keep up. They hire en masse and train people for days before putting them to work. Workers at Foxconn tend to be quite young, around 18, and they will often come from impoverished rural areas for the work. This actually has a positive benefit to the people left behind in the villages who told ABC that they felt life was better without the young people around. "More of everything," noted one villager. I have to imagine the generation gap was at play here somewhat, as family ties would still find some people missing their grandkids. But the opportunity at Foxconn is what causes workers to flock to the factories. As for working conditions, I saw very little that was shocking. The only exception was the nets, placed around dorms and other buildings with high floors, which are designed to make potential suicide victims think twice before jumping. Those you don't see many places. Of course, the suicides at Foxconn are partly what drew so much attention to the factory. Louis Woo, a Foxconn executive, explained how Tim Cook flew to China to help organize counseling for people to prevent further suicides. Otherwise, the Foxconn areas shown in the report looked far nicer than any American factory I've been in (and I've been in a few). People complained about a lot of the same stuff you find anywhere -- pay, food, hours. But then, workers do work a 12 hour shift. And they stay in dorms with seven other people in a room that makes my college dorm look grandiose by comparison. Still, this isn't unusual in a country with the single largest population on the planet by far. Weir did show footage of workers napping at their stations, saying that if one ate their meal fast enough, they could catch a quick nap. Foxconn workers have two one-hour breaks to eat, but the executive who led Weir around the factory explained the naps after meals are, in fact, a Chinese tradition. Foxconn offers workers what looked like a very pleasant Internet cafe, recreational facilities (a soccer field was shown) and some education, like English classes. ABC gave no percentages on how many workers use these amenities, but it was pointed out that most people are there to simply work. Then there were the inspections by the Fair Labor Association. The head of that organization explained that he expected Foxconn to put on a show, but that they will conduct "bottom up" interviews to ensure working conditions are decent. I won't spoil the rest, but ABC fairly points out that several other companies contract Foxconn, and Apple takes heat because they are so visible. While the report didn't have any huge revelations (they were denied an interview with Tim Cook), I think it painted a fair picture of where our Apple gear comes from. Looking at the Apple lines at Foxconn, I feel a little better knowing they are probably enjoying some of the best working conditions in China.
ABC News to air firsthand report on Foxconn factories next week
Next Tuesday, February 21, the ABC News program Nightline will air an in-person report covering the conditions at Foxconn factories that manufacture Apple products. Per PCWorld's story, Apple arranged "exclusive access" for Nightline anchor Bill Weir to tour the factories, meet with workers and interview a "top executive." Apple's new glasnost around its contract manufacturers has extended to the Fair Labor Association, which began its audits of Foxconn and other vendors this past week. While initial reports from the FLA audits cited above-average conditions at Foxconn and improvements in aluminum polishing operations, yesterday Bloomberg reported that the organization's CEO now believes there are "tons of issues" at Foxconn facilities.
Tim Cook speaks on labor, cash and culture during Goldman Sachs conference (Update)
Tim Cook presented remarks at a Goldman Sachs Technology Conference on February 14, and it turned out to be a quite lively affair. Cook opened up on a diverse array of topics ranging from Apple's commitment to improving working conditions at its suppliers all the way to what sounded to us like choking back comments on the next-gen Apple TV. Mac Rumors has an impressive word-for-word transcript of the entire event, and it's definitely reading through the entire thing. We've reprinted some choice excerpts below. Apple may post a podcast of the event on iTunes later; if it does post it, it's worth listening to not only for the fascinating content but also to hear Tim Cook sounding the liveliest and most animated he's sounded since taking over as Apple's CEO. On Apple's commitment to worker rights: We think the use of underaged labor is abhorrent. It's extremely rare in our supply chain, but our top priority is to eliminate it totally. We've done that with our final assembly and we're now working with vendors farther down in the supply chain. If we find a supplier that intentionally hires underage labor, it's a firing offense. We don't let anyone cut corners on safety. If there is a problem on safety, we seek out the foremost experts and set a new standard and apply that to the entire supply chain. We focus on the details. If there is a fire extinguisher missing from a cafeteria, that facility doesn't pass inspection until that fire extinguisher is in place. We are continuing to focus on problems endemic to our industry like excessive overtime. Our code of conduct has a cap of 60 hours per workweek [...] In January, we collected weekly data on over a half million workers in our supply chain. We had 84% compliance. This is significantly improved from the past, but we can do better. We're taking the unprecedented step of reporting this monthly on our website, so it's transparent to everyone what we're doing. (emphasis added) On the iPad and the PC market: We started using it at Apple well before it was launched. We had our shades pulled so no one could see us, but it quickly became that 80-90% of my consumption and work was done on the iPad. From the first day it shipped, we thought that the tablet market would become larger than the PC market and it was just a matter of the time it took for that to occur. I feel that stronger today than I did then. As I look out and I see all of these incredible usages for it, I see the incredible rate and pace of innovation, and the developers -- If we had a meeting at this hotel, and we invited everyone doing cool stuff on PC, we wouldn't have anyone here. If you invited everyone working on iOS or on that other operating system, you wouldn't be able to fit everyone! That's where the innovation is! On competition and cannibalization: Price is rarely the most important thing. A cheap product might sell some units. Somebody gets it home and they feel great when they pay the money, but then they get it home and use it and the joy is gone. The joy is gone every day that they use it until they aren't using it anymore. You don't keep remembering "I got a good deal!" because you hate it! The customers that we're designing our products for are not satisfied with limited function types of products. I think the real catalyst of the tablet market will be innovation and pushing the next frontier. Honestly, we'll compete with everybody. I love competition. As long as people invent their own stuff, I love competition. (emphasis added) I don't predict the demise of the PC, I don't subscribe to that. Given what we've seen, I believe the iPad is cannibalizing some Macs but more PCs. There are more of them to cannibalize than Macs so thats a plus to us. On Apple's cash pile: I think everyone would want us to be deliberate and really think it through. That's what we're doing. We're not going to go have a toga party and do something outlandish. People don't have to worry that it's burning a hole in our pocket. It's not new that we're discussing [dividends]. We are discussing it more and in greater detail. The balance has risen to the point you've made and I think it's clear to everyone and I'd be the first to admit that we have more cash than we need to run the business on a daily basis. I only ask for a bit of patience so we can do this in a deliberate way and make the best decision for the shareholders. On the Apple TV: It's clearly ramping, but the reality -- the reason we call it a hobby -- we don't want to send a message to our shareholders that we think the market for it is the size of our other businesses. The Mac, the iPad, the iPod, the iPhone. We don't want to send a signal that we think the length of that stool is equal to the others. That's why we call it a hobby. Apple doesn't do hobbies as a general rule. We believe in focus and only working on a few things. So, with Apple TV however, despite the barriers in that market, for those of us who use it, we've always though there was something there. If we kept following our intuition and kept pulling the string, we might find something that was larger. (emphasis added) We need something that could go more main-market for it to be a serious category. Note: It doesn't come across so much in the transcript, but on the call itself Cook was being very cautious and deliberate in his choice of words when discussing the Apple TV. Everyone at TUAW listening in on the call could tell he was holding something back here. On Siri and iCloud: They're not something we run P&L's on, we don't believe that. We run the company from the top and don't worry about the iCloud team or Siri team making money. Both of these things go in the profound category. They're things that you'll talk to your grandkids about that are profound changes. On the "Apple Culture": Apple is this unique culture and unique company. You can't replicate it. I'm not going to witness or permit the slow undoing of it. I believe in it so deeply. We should only go into markets where we can make a significant contribution to society, not just sell a lot of products. These things, along with keeping excellent as an expectation, these are the things that I focus on. I want to look out at an audience and see people using iPhones and see people using iPods at the gym, or going to Starbucks and seeing people use the iPad. These are the things that bring a smile to my face. There is no substitute for that. Update: Apple has posted audio of Tim's presentation.
