TerryGou
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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.
Apple will build an R&D center in China's Silicon Valley
Apple needs China a little more than China needs Apple, which is why the company is bending over backwards to show some love to the Middle Kingdom. VentureBeat is reporting that the iPhone maker will open a research and development center in Shenzen, the Silicon Valley of Hardware. The site quotes Apple spokesperson Josh Rosenstock saying that the facility will help Apple's engineers work "even more closely and collaboratively with our manufacturing partners." Given that Shenzen is home to Foxconn City, the site where several Apple products are assembled, it makes sense that Apple would push for an official presence in the region.
Foxconn trumps Japanese rival in $5.2 billion bid for Sharp
Sharp may have mounds of debt and falling sales, but it has one thing that China's Foxconn doesn't -- display technology used by Apple and others. That's reportedly why Foxconn has bid 625 billion yen ($5.4 billion) to buy the troubled company, according to the WSJ. That bid is over double the 300 billion yen ($2.6 billion) offered by an Japanese investment fund called Innovation Network Corp. In addition, Foxconn will absorb all of Sharp's considerable debt -- the company has a 510 billion yen ($4.4 billion) payment due soon on a series of loans to Japanese banks, for example.
Sharp mortgages itself to the hilt just to keep going
Sharp has mortgaged its offices and factory buildings in order to raise the cash it needs to stay in business, according to Reuters. It's cut a deal with banks for nearly $2 billion in short-term credit secured on its assets -- including the factory that reportedly produces displays for the iPhone. Sharp had pinned its hopes on cash from Hon Hai, but the Chinese giant is apparently delaying the money with the aim of gaining more control over Sharp's business. In response, Sharp has pledged to send president Takashi Okuda to meet Hon Hai's Terry Gou in Taipei -- just as soon as it's scraped together the air-fare.
Foxconn confirms third death from explosion, earlier watchdog report points at aluminum dust (updated)
Following the tragic explosion at Foxconn's Chengdu plant on Friday, the company has now confirmed to All Things Digital the death of a third employee, with nine remaining in hospital. While investigation is still ongoing, initial findings are pointing at "an explosion of combustible dust in a duct" at one of the polishing workshops, which supports earlier rumors of dust explosion; though there's no confirmation on what caused the ignition just yet. In related news: two weeks before the fatal accident, watchdog group SACOM released a report on the welfare of workers at the new Chengdu plant. Amongst the uncovering of management issues, excessive working hours, and hazardous environment, PC World highlights complaints from workers about the large amount of aluminum dust -- which is highly explosive -- floating around the polishing department, thus suggesting a lack of proper dust extraction methods within the facility. Foxconn has previously slammed this report, but the outcome of this explosion's investigation should once and for all prove who's telling the truth. For now, though, the priority is to make sure the victims and their families are taken care of. Full statement from Foxconn after the break. Update: According to China Times' industry sources, the explosion has only affected some storage facilities and chemical coating lines, though Foxconn president Terry Gou is said to be reallocating some production to his Shenzhen plant as a just-in-case measure.
Report: Foxconn making 1.5 iPhones per second
137,000 iPhones per day. That's how many manufacturer Foxconn is reportedly making these days, its chairman tells the press. That's an amazing figure adding up to 50 million iPhones every single year, even as Apple struggles to keep enough hardware in stock. And the process isn't easy, either -- chairman Terry Gou says that the company found out it needed a certain machining rig usually designed only for prototyping in order to stay in line with Apple's strict manufacturing standards. Foxconn ended up buying over 1,000 of the machines at $20k each, even while other manufacturing companies are buying just one. It's crazy to think about the scale of the operation over there -- not just the equipment, but the workers and organization required to churn out that kind of product. And sadly, it appears the pressure is still on for the company, as we've seen multiple times before. Apple is setting records over here on this side of the world with the iPhone's sales numbers, and it's sometimes easy to forget that behind all of that, there's an industrial machine churning out product by the millions. [via HardMac]
BusinessWeek profiles Foxconn founder (and veritable pitbull) Terry Gou
As you might imagine, becoming the dominant player in electronics component manufacturing in China -- particularly at a time when competition has never been fiercer -- takes a particular personality type, and after reading BusinessWeek's profile of Foxconn founder Terry Gou, you get a very real sense that the dude meets the criteria. His reaction to this year's factory suicide controversy is a bit unusual; he basically comes out and says that he didn't worry about the first few before realizing that he needed to make some changes somewhere around the fifth death, but given that he says he's been living in his office for a while now and eating three meals at his desk trying to make things right, it sounds like he's finally on top of it. The story of Foxconn's stratospheric rise is an interesting one, starting with its early coup making components for the Atari 2600 leading through to its purchase of 1,000 Fanuc milling robots generally reserved for prototyping -- valued at $20,000 apiece -- that it needed to buy to secure Apple's iPhone 4 contract. Gou envisions a fully-automated (and presumably almost employee-free) component factory inside of five years, has qualms about expanding his manufacturing presence in America ("I don't want to spend time having people sue me every day"), and pays executive bonuses out of his own dividends to protect the company's bottom line... so yeah, he's quite the industrialist. Follow the link for the fascinating full profile.
Chinese government to make Foxconn suicide findings public
We've been struggling to wrap our heads 'round this whole Foxconn imbroglio since the beginning, and while we're pretty skeptical about any official reports we'd be remiss if we didn't mention that the Human Resources and Social Security Ministry in China was looking into the thing, and that they'll be releasing the findings somewhat soonish. According to Vice Minister Zhang Xiaojian, recent strikes at various factories including Brother and Honda (strikes seemingly sparked by the Foxconn incidents) do not constitute "a 'wave' of unrest." Well, that's good -- for business owners, at least. And while the families of the Foxconn suicides maintain that long hours, low pay, and harsh management are to be blamed, Zhang added that "the psychological problems of the workers" can be added to the list. Psychological problems caused by low pay, long hours, and harsh management, perhaps? [Thanks, Xinh]
Foxconn axes suicide compensation, relocating some production to Vietnam or Taiwan
At yesterday's annual shareholder meeting, Foxconn revealed that it'll no longer be compensating families of dead employees as a move to discourage further suicides. CEO Terry Gou reasoned by exhibiting evidence that showed the money -- an amount almost equivalent to ten years' worth of salary -- was a major motivation for the suicides. One such exhibit was a man's suicide letter that contained the following message for his parents: "...now I'm going to jump off Foxconn, really leaving now, but you don't have to be sad, because Foxconn will pay a bit of money, this is all your son can repay you now." Gou also blamed a possible "Werther Effect" created by the news coverage, which might have led to six of the twelve suicides all taking place in May. Consequently, the company will be handing over its welfare management work to the local Chinese government, as it's unable to deal with too many social responsibilities. In the same meeting, the company made an unsurprising announcement that it's looking to relocate some manufacturing work, amid a worsened earnings forecast due to increased wages -- basic salary has gone up from ¥900 ($132) to ¥1,200 ($176), rising to as much as ¥2,000 ($293) for those who meet new performance criteria. This will involve setting up a fully automated facility in either Taiwan or Vietnam, while the existing Vietnamese plant will be receiving more orders. Chairman Samuel Chen also said that Foxconn will be working with its clients to share the load -- no further details on this, but we suspect Apple's rumored direct subsidies are part of the plan.
Apple, Dell, and HP comment on suicides as Foxconn CEO shows off the pool
On an 84-degree day (29 C) at a Chinese factory housing some 400,000 workers, at least 2 of them were enjoying the Foxconn swimming pool. We know this because the notoriously secretive Foxconn CEO, Terry Gou, was showing off some of the workers' facilities to the press to assure the world that he was not operating a sweatshop. Foxconn has received a great deal of attention lately after a rash of suicide attempts this year left 2 workers seriously injured and 9 people dead. While these numbers are relatively low compared to World Health Organization data showing a suicide rate of about 14 deaths per 100,000 Chinese, Foxconn contends that there were only one or two suicides a year previously at its Shenzhen factories. Today Gou announced that Foxconn has 70 psychiatrists and 100 voluntary workers trained to help prevent suicide. Great, problem solved. As you probably know, Foxconn is behind the assembly of many major consumer electronics brands including HP, Nokia, Dell, and Apple -- the latter two have come out with statements expressing their respective concern. Apple had this to say: "We are saddened and upset by the recent suicides at Foxconn. We're in direct contact with Foxconn senior management and we believe they are taking this matter very seriously. A team from Apple is independently evaluating the steps they are taking to address these tragic events and we will continue our ongoing inspections of the facilities where our products are made." And Dell this: "We expect our suppliers to employ the same high standards we do in our own facilities. We enforce these standards through a variety of tools, including the Electronics Industry code of conduct, business reviews with suppliers, self-assessments and audits." During today's press event, Tang Wenying, a young Foxconn line supervisor said, "This is a good place to work because they treat us better than many (other) Chinese factories." And that may be the most worrisome aspect of this: Foxconn, by all accounts, provides some of the best conditions for the Chinese workers it employs. What does that say about the anonymous (and thus, invisible) chain of small suppliers and secondary assembly facilities nobody reads about? Update: HP says that it is also investigating "the Foxconn practices that may be associated with these tragic events."
