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Foxconn raises Chinese worker wages
Foxconn has been back in the news lately for an investigation, commenced by Apple's request, into its worker practices. Perhaps influenced by those actions (though perhaps not), Foxconn has raised some of its pay levels by 16 to 25 percent. Depending on the worker and the results of some testing, junior level workers could pick up as much as 2200 yuan, which translates to about $350 US, a month. That's still only about $4200 a year, but it's more than the minimum wage in China, and most factory workers are also given room, board, and training by the company, so there are other expenses that are already taken care of. This is the second time in as many years that Foxconn has raised wages like this: Back in 2010, the company raised its production line workers' wages as high as 30 percent. So in terms of monetary compensation, at least, things at the Foxconn plants are improving, if not actually good yet. It's unlikely that a wage raise like this will prevent ongoing protests against Apple and other companies that make use of this factory labor, but every bit of good news out of this situation is definitely excellent to hear.
Apple opens up inspection of its Foxconn plants to Fair Labor Association
One of Apple's major manufacturing cogs, Foxconn, will receive voluntary audits from the Fair Labor Association on factories in both Shenzhen and Chengdu in China. These inspections already began earlier today over in "Foxconn City", where the FLA has started polling "thousands" of employees, covering both their working and living conditions. Facilities (including dormitories) will be inspected by the FLA, which will also sift through all the required employment documents, with its findings set to be published in March. In total, the assessment will cover more than 90 percent of Apple's assembly locations. It following its self-published supplier responsibility report and recent concern over its production methods and worker conditions. See how Apple breaks it down in its press release after the break.
Protests against iPhone factory conditions planned at Apple Stores
Stories about troubling factory conditions at Foxconn are all too familiar, unfortunately, but hearing that protestors are planning to do something about it is new. GigaOM reports that this Thursday, representatives from Change.org and Sumofus.org are planning to bring petitions to Apple Stores in major cities around the US, asking the company from Cupertino to put together "a worker protection strategy" for the factories overseas that it contracts to make all of its products. The organizations will arrive at stores in Washington, DC, New York City, San Francisco, London, Sydney and Bangalore, and will also bring signs and leaflets along to educate Apple customers and employees about what's happening overseas. The petitions will have the names of 250,000 people on them, and one of the representatives from Sumofus.org says that the group is "asking Apple to clean up its supply chains in time to make the iPhone 5 its first ethically produced product." Obviously no one wants factories with terrible conditions for its workers, and Apple in the past has at least given lip service to wanting to make sure that conditions are as good as possible at the companies that it contracts work from. But maybe a protest like this will bring even more light to the issue, and pressure Apple even further to make sure that any of its production lines are at least benign when it comes to worker safety and labor rights.
Explosion at Apple supplier injures 57 workers
The welfare of Chinese workers is back in the spotlight after an explosion at Shanghai-based Riteng Computer Accessory Company left 23 people in hospital with burns and another 34 with more minor injuries. Local government officials said the explosion happened on Saturday afternoon at a workshop on the fourth floor of the facility. Riteng is a subsidiary supplier to Pegatron Corp and the Chinese newspaper Yi Cai Daily reported it was in the middle of trial production of aluminum iPad 2 back panels. A separate explosion at a Foxconn factory back in Spring was attributed to poor extraction of combustible aluminum dust.
Apple's A5 processor now manufactured in Texas
"Designed by Apple in California" -- you'll find that on virtually every Apple product. While it's well-known that the brains of Apple's outfit are indeed housed in California, it's almost as well-known that Apple's products are almost wholly manufactured overseas. Indeed, Apple has been a target of criticism in the past because of how much it relies upon labor outside the US. However, according to a new report from Reuters, apparently at least one major component of Apple's portable devices is in fact manufactured in the States -- in Texas, to be more specific. Reuters reports that the A5 processor that powers both the iPad 2 and iPhone 4S is built in a Samsung-owned, 1.6 million square foot factory in Austin, Texas. The A5 production line in Austin reportedly reached full production earlier this month, and Reuters' sources say nearly the entire factory's non-memory production is geared toward cranking out A5 chips for Apple. Previously the only source of A5 chips was Samsung's factory in South Korea. Austin's A5 production line has created 1100 new jobs in the Austin area, Reuters says. Reports from earlier this year indicated that rival production firm TSMC may produce the next-generation A6 processor instead of (or possibly in addition to) Samsung. While Samsung is the main supplier for many of the central components of Apple's iOS-powered devices, it is also one of Apple's chief competitors in the smartphone market. The two companies have also been embroiled in a knockdown-dragout patent battle across multiple continents for several months, so it's not clear just how long this Samsung production line in Texas will be doing business with Apple.
Cambridge researchers translate graphene into printable circuitry material, bring basic 'Skynet' factory to you
Yes, graphene is amazing and possesses many useful / otherworldly properties. The ability to use graphene itself to print flexible, transparent thin-film transistors via an inkjet printer is just another one of them. Over at the University of Cambridge, researchers have discovered that it's possible to print standard CMOS transistors using a graphene component. Provided the graphene is chipped off a block of graphite using a chemical solvent and the larger (potentially print-head blocking) chips are removed, it can be turned into a polymer ink which can then run through a conventional inkjet printer. The potential result of this is flexible, transparent and wearable computer circuitry coming from ordinary printers as opposed to several multi-million-dollar machines in a factory, which has long been the historical standard. Besides, who wouldn't want to print their own circuitry on a PhotoSmart MFP rather than whatever report might be due the next day?
Sony, Toshiba, Hitachi make joint venture official, form Japan Display Inc.
Sony, Toshiba and Hitachi officially joined forces today, cementing a government-backed joint venture that's been in the works for a few months, now. Together with the government-funded firm Innovation Network Corporation of Japan (INCJ), the three manufacturers will now form an entity known as Japan Display Inc., slated to launch during the Spring of 2012. INCJ is providing the lion's share of the funding (approximately $2.6 billion), giving it a 70 percent stake in the newly formed venture. The other three, meanwhile, will each control ten percent of the company, which will encompass their respective small-display subsidiaries. The stakeholders are hoping that today's announcement will help revive their sagging display sales, with some extra help from Panasonic, which also announced that it's selling one of its biggest domestic factories to the freshly minted Japan Display, for an unnamed sum. Find more details in the full PR after the break.
But you can't get the Romania out of Nokia
Local news outlets are reporting that Nokia is in trouble with the Romanian government over unpaid debts amounting to $10 million. The outstanding sum supposedly relates to customs bills racked up by trucks removing Nokia's equipment from its abandoned Cluj factory. A Nokia spokesperson just confirmed to us that the company is experiencing some kind of problem in that country, but is "engaging with the local authority to ensure it will be resolved satisfactorily."
Hon Hai sees profit fall nine percent in Q3, pins hopes on new Chinese factories
Hon Hai Precision Holdings has just released its Q3 earnings report, and it probably did so with a whimper. That's because net profits fell to NT$19.2 billion (about $614 million) this quarter, marking an 8.6 percent decline from Q3 2010, when Hon Hai (aka Foxconn) reported a net income of NT$21 billion (around $702 million). The company blamed the decline on a slow economic recovery and its ongoing expansion in China, where new factories are being constructed across inland areas like Chengdu, Wuhan and Zhengzhou. These costs are still taking a toll on Hon Hai's bottom line, though analysts say the expansion could pay off in the long-run, thanks to the lower wages that Hon Hai will have to pay to maintain operations in these less affluent regions. Some are also hopeful that the iPhone 4S will help spur production heading into Q4 of this year, though its ultimate effect, of course, remains to be seen. Hit up the links below for more details and analysis.
Brazil's iPad production deal is 'in doubt'
Tech product manufacturer Foxconn has been in talks with Brazil to open a factory in that country for some time now, but apparently talks have begun to break down. Reuters now says the proposed US$12 billion deal is "in doubt" because Brazil lacks skilled labor and isn't meeting Foxconn's expectations for tax breaks. Foxconn operates factories in several countries, with its most (in)famous operations in Shenzhen, China, where the manufacturer builds products for Apple and most other major tech companies. The proposed factory in Brazil likely would have supplemented iPad and iPhone-building operations in Foxconn's other factories, but the future of the deal is in trouble. Production was originally supposed to begin at the Brazilian factory in July, was then pushed back to November, and now appears to be postponed indefinitely. For its part, Brazil says Foxconn's demands with regards to tax breaks and other "special treatment" are "crazy," but Brazil's high taxes, poor infrastructure, and lack of skilled workers is likely making Foxconn think twice about initiating major operations in South America. It's still possible the deal may be salvaged, but government officials do not appear to be hopeful. One official confessed to Reuters that Brazil may "end up starting with something smaller" than the originally proposed deal.
Report: Foxconn's Brazil factory ready for business, will begin shipping iPads in December
It appears that Apple is about to expand its manufacturing operations to Brazil, where a new Foxconn factory is already in place and ready to churn out iPads, according to a report from national media outlet UOL. Aolizio Mercadante, the country's minister of science and technology, confirmed the news this week during a hearing held by the Commission of Economic Affairs. "At first many doubted, but it will be the first time that [Apple] will produce iPads outside Chinese territory," Mercadente said. "We are taking a big step for digital inclusion in the country." Located in Jundiaí, the new facility was constructed under a joint venture between Foxconn and the Brazilian government, with the former reportedly contributing $12 million to the initiative. Rumors of a South American expansion began circulating earlier this year, with many expecting Foxconn's Brazil-based operations to get underway during Q1 of 2012, according to DigiTimes. Construction, however, appears to have wrapped up ahead of schedule, with Mercadante claiming that iPad shipments will begin in December. Apple, for its part, has not commented on the report.
LG Display cuts spending targets for 2012, amid sagging LCD demand
LG Display has decided to drastically cut its expenditure target for 2012, in yet another sign that the LCD market is going through some tough times. Today, the manufacturer announced that it will spend only three trillion won (about $2.8 billion) on its production facilities next year -- a 33 percent decrease from its previously revised budget and LG Display's lowest expenditure target since 2009. The company also said that it has no plans to build a new LCD plants in 2012, suggesting that it may already be facing excess panel supply. Analysts are predicting that demand will remain subdued throughout the end of 2011, though LG Display CFO James Jeong had previously said he expects things to pick up by the beginning of next year.
Foxconn wants one million new workers, must be robotic
We saw this coming when we met FRIDA, and now it's apparently happening. According to Xinhuanet, Foxconn's founder and chairman chose a workers' party last Friday night to reveal plans for a surge in the company's robot contingent. There'll be 300,000 robots in operation by next year and a swarm-like 1,000,000 within three years -- versus just 10,000 today. The bots will be required to spray, weld and not kill themselves. We can only imagine how this news went down at the party, but soon stuff like that will hardly matter.
Nokia 'Sea Ray' WP7 handset revealed on a factory floor? (Video)
Stephen Elop himself spilled the beans about Nokia's first WP7 handset, codenamed Sea Ray, when he told a large live audience and some whirring video cameras that he wanted the phone to be kept "super confidential." Now we have a whole new puddle of legumes lying on what sounds like a Chinese factory floor, courtesy of the authentic-looking video above. The clip reveals the N9-like device removed from what appears to be a stealth case, followed by a speedy boot-up into the Windows Phone OS. We're also treated to a quick look at the camera in action -- triggered by a dedicated shutter button that's missing on the N9 -- before a hurried "goodbye." There's not much else to see here, but could that reddish theme be a hint that this particular example is destined for Vodafone? Only time will tell. [Thanks to everyone who sent this in]
Blast at Intel's Arizona plant injures seven, investigation under way
Yesterday afternoon, a blast occurred at Intel's Arizona plant just outside Phoenix, injuring seven people with one suffering from severe burns. According to Phoenix Business Journal, the incident took place in a solvent waste treatment room at Fab 22 -- not far from Fab 32 which will be manufacturing 22nm chips -- but Intel Vice President Josh Walden assured us that "there was no damage or release of chemicals to the community," and production has already resumed in both facilities. The company is currently looking into the possible causes of this accident -- you'll know it when we have an update, and we wish the victims a quick recovery. [Image courtesy of neepster]
Foxconn plant reopens, resumes operations following explosion
Foxconn confirmed today that its manufacturing plant in Chengdu, China has reopened and resumed operations following an explosion in its iPad 2 production facility last month that killed three employees and left others in hospital. The company has also announced that while its investigation into the incident is "ongoing," it has already addressed the preliminary finding that the explosion was "likely due to an explosion of aluminum dust in a ventilation duct." To that end, it says it has put in place "improvements in workshop ventilation," as well as a "a total revamping of the policies and practices related to the disposal of that dust." All Things D has the company's complete statement at the link below.
Samsung's new AMOLED production line should help ease smartphone display shortages
AMOLED displays may be in relatively short supply nowadays, but Samsung is doing its best to bridge the gap. Today, the company's Mobile Display unit announced that its 5.5th-generation AMOLED production line is now open, some two months ahead of schedule. The line uses glass substrates that are substantially larger than those found in its existing factories, allowing Samsung to increase output, while lowering costs. This increase in production comes in response to growing demand for the Galaxy S II and an AMOLED market that, according to DisplaySearch, should triple in value this year to $4.26 billion. For now, the production line is focusing on smartphone displays, since that's where demand is growing fastest, but will eventually turn its attention to tablet PC displays, as well. The new factory assembling the displays can currently churn out about three million screens per month, but is capable of ramping that up to 30 million, at full capacity. No word yet on when it will achieve this rate, but if SMD continues to boost its output, we may even see that market surplus we've been hearing about.
China urges Foxconn to ensure worker safety
It's been another rough week for Foxconn, Apple's biggest manufacturing partner. After an explosion at a Foxconn factory killed three workers last Friday, the Chinese government urged the manufacturer and other Taiwanese companies to better ensure the safety of their employees. "We hope Foxconn and other Taiwanese firms can learn lessons from this, carry out safety responsibilities, step up internal oversight, stamp out potential safety risks in a timely manner, and ensure safe production," Fan Liqing, a spokeswoman for China's Taiwan Affairs Office, said on Wednesday. Friday's deadly explosion rocked a Foxconn polishing workshop in Chengdu, a city in southwest China, where workers put the finishing touches on electronic products for many of the world's largest brands, including Apple. Immediately after the blast, the local government began rescue efforts and an investigation into its cause. So far, investigators believe the explosion was the result of a "production safety accident," according to Fan, who didn't go into further details about the cause of the incident. Previous reports suggest that combustible dust in the polishing workshop ignited to fuel the blast. In response to the incident, Foxconn has temporarily suspended operations at all of its workshops that polish electronics in China and, according to Fan, the manufacturer pledged to "make an all out effort" to treat the injured workers, reassure the families of their employees, and remove hidden safety risks "in accordance with relevant requirements."
Apple issues statement on Foxconn explosion
Apple has issued a statement to All Things Digital regarding the tragic explosion that occurred at a Foxconn plant in Chengdu, China earlier today. The explosion killed 2 workers and injured at least 16 others. In the statement Apple said: "We are deeply saddened by the tragedy at Foxconn's plant in Chengdu, and our hearts go out to the victims and their families. We are working closely with Foxconn to understand what caused this terrible event." Foxconn has long been rumored to have dubious conditions for workers, and employees have voiced concerns over workplace safety and standards in the past. Apple even audited the company over its practices back in February of this year. Just three days ago, Foxconn employees protested outside a Foxconn shareholder meeting over wages and its treatment of employees. For its part, thus far Foxconn has not confirmed what caused the explosion, though the company has said that the situation has been brought under control. Production at the affected facility will be halted until an investigation into the cause of the explosion is completed.
Explosion at Foxconn's Chengdu plant kills two
An explosion occurred at Foxconn's Chengdu plant earlier today, with reports claiming several workers have been injured. The Taiwanese company has yet to release a statement regarding figures and the cause of this tragedy, but according to 21st Century Business Herald, witnesses saw lightning hit the A05 building before the explosion took place -- it is believed that this is a case of dust explosion, and security guards were allegedly warning evacuees that the smoke was toxic. At the time, hundreds of workers were present in the affected workshop which houses an iPad 2 assembly line. Our thoughts are with the victims and their families. Update: Sina Tech is reporting two deaths and sixteen injured people, with three in critical condition. We've also added a video from the scene after the break, courtesy of Sohu. Update 2: Apple has provided a statement to All Things D, saying: We are deeply saddened by the tragedy at Foxconn's plant in Chengdu, and our hearts go out to the victims and their families... We are working closely with Foxconn to understand what caused this terrible event.
