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Foxconn reports $218 million full-year net loss, worse than analysts' expectation
Foxconn, the mega-manufacturer behind many popular gadgets, posted a $218.3 million net loss for 2010 yesterday. While the company had previously predicted lower earnings amid suicide-related wage increases and welfare costs, the reported figure is still worse than analysts' estimation of around $202 million, which also far outweighs the prior year's $38.6 million profit. Foxconn puts the blame on higher consolidated income tax and increased competition, as well as "cost streamlining actions" -- a reference to the ongoing relocation and expansion plans, which are also the outcome of the Chinese suicides -- that took longer than expected and led to increased spending along with higher manufacturing overhead. As for 2011, Foxconn said it'll "take decisive actions to conclude our capacity relocation, optimize our cost structure and return to profitability." Of course, further losses could accelerate plans to increase prices, which could ultimately put everyone in a lose-lose situation if Foxconn can't compete. Excerpts from the financial report can be found after the break.
Fujifilm resumes production on X100 cameras, new-age vintage is rolling again
Fujifilm has a hit on its hands with the retrotastic X100 camera, selling for a whopping $1,200 but still flying off shelves. That popularity resulted in some shortages, and a stoppage of production due to the disaster in Japan made that situation worse. Now the company is announcing a resumption of production, so the 12.3 megapixel compact with a 23mm fixed lens should be hitting store shelves again in the next week or so. Place your orders now, if you haven't already, and get that sepia filter warmed up so that your pictures can look as vintage as what you're shooting them with.
EV milestone: Fisker rolls first Karma off the assembly line, aims to deliver 7,000 this year
Patience can bear such wonderful fruit, can't it? The electrified (and electrifying) Karma, which first graced the world with its presence back in 2008, has managed to negotiate the slalom course of funding and logistical issues that faces any new upstart company and can now boast its very first production unit. The Karma 1 above will be making its way out within a month (presumably after every nook, cranny and capacitor has been polished to perfection) and company spokesman Roger Ormisher says the plan is to ramp up very slowly and carefully, reaching "over 7,000 deliveries" by year's end. Considering the rate at which Leafs and Volts have been selling so far, that doesn't actually sound half bad.
Leaf deliveries delayed by Japanese quake, but Nissan and Sony already reopening factories
Not the jolliest of news if you were waiting on a fresh new Leaf EV to blow in any time soon, as Nissan has had to understandably delay shipments as a result of the natural disaster that has befallen Japan. Updates on when customers might expect their orders to be completed will be forthcoming as soon as available. There are happier developments on the isle of Japan itself, however, where Nissan is resuming limited operations at five plants today and expects to be producing vehicles again by Thursday, which will last as long as supplies do. Sony has also shaken off some of the effects of the recent earthquake and says it'll restart production of lithium-ion batteries at its Tochigi prefecture plant tomorrow. So, encouraging signs ahead for Japan's industry, let's hope everyone else's recovery proves to be as swift.
Wintek workers still experience effects from n-hexane exposure, Apple issues a report
It's been a few months since we checked in on the workers at Wintek, where they manufacture touchscreens for the likes of Apple. As you might remember, the former company was facing a lawsuit for chemical poisoning that occurred between May 2008 to August 2009 when the company substituted alcohol for n-hexane in the manufacturing process. Both Apple and Wintek maintain that ultimately a total of 137 people had been hospitalized, and all have recovered -- but as Reuters points out, daily exposure to the chemical has been known to cause "long-term and possibly irreversible nerve damage," and Wintek employees have maintained that the company has left them holding the bag for symptoms that could very well flare up again in the future (or, in some cases, never really went away). "We are unable to cope with the medical costs of treatment in the future," said Guo Ruiqiang, a worker at the plant. "We can only stay in the factory and see what happens. We just feel very helpless now." For Apple's part, the company has mandated that Wintek "work with a consultant to improve their Environmental Health and Safety processes and management systems" in anticipation of a complete reaudit of the facility in 2011. [Warning: PDF More Coverage link]
Intel to spend $5 billion on new 14nm fab in Arizona, create 4,000 new jobs this year
When Paul Otellini isn't too busy talking about being jilted by Nokia, he spends his time hosting presidents and splashing billions of dollars on new manufacturing facilities. Intel's CEO is wrapping his tumultuous week on a high note, having welcomed Barack Obama to Chipzilla's Oregon facility and treated the president to the happy news that Intel will invest $5 billion back into the US economy by building its most advanced fab yet -- which will introduce an impossibly small 14nm production process -- in Arizona, to begin operation in 2013. Construction starts in the middle of this year and is expected to create "thousands" of jobs, both temporary and permanent. Aside from that, Otellini has disclosed Intel's intention to create 4,000 new jobs in the US, mostly in R&D and product development. Music to Obama's ears, we're sure.
Exclusive: A day trip to Meizu's factory (video)
Jack Wong is a very lucky guy. Or you can say he's very unfortunate. On one hand, his eight-year-old Meizu label -- literally meaning "the captivating tribe" -- has rapidly become one of the most popular brands amongst Chinese gadget lovers, yet all he's producing right now is just the one phone: the M9. On the other hand, the now-discontinued M8 had notoriously caught unwanted attention from Apple, and even the recent M9 launch saw accusations of Meizu hiring people to stand in line. But the latter points are irrelevant for now -- what we're really interested in is how a teensy MP3 player factory managed to outpace its numerous competitors to become a reputable smartphone maker with a huge fan base. To help us understand what drives the company, we decided to pay Meizu a visit. Go on, you know where to click. %Gallery-115342%
Nissan ramping up Leaf production, trying to meet demand
After doing its best to lower expectations among those with Leaf pre-orders, Nissan is now doing all it can to ramp up production of the things. Just 3,000 cars total have been produced since October at the company's factory outside of Tokyo, but by the end of March Nissan pledges to be pumping out that many each and every month. In 2012 a plant in Tennessee will come online and, in 2013, another new plant, this one in Sunderland, England. That means that if the company is going to meet its pledge of 25,000 Leafs (Leaves?) on the roads by the end of 2012 almost all will have to come from Japan -- probably on one or more boats.
Qualcomm lays down $1 billion for new Mirasol plant in Taiwan, catering small and medium devices
Good news, digital bookworms! After months of rumoring, Taiwan's Ministry of Economic Affairs has just announced that Qualcomm will really be building a new Mirasol plant over there. Specifically, the $1 billion, seven-hectare factory will reside in the Hsinchu Longtan Science Park to mass-produce small and medium flavors of said transflective display, meaning the Snapdragon maker will, for the first time, be able to churn out something smaller than the current lone 5.7-inch model. Yep, those must be the low-power smartphone screens that Qualcomm talked about previously, which sure sound delicious. Now, what's up with our little Pixel Qi?
A look inside the Foxconn factory
French journalist and photographer Jordan Pouille revisited a Foxconn factory in Longhua, China and reported on factory conditions in the wake of a highly publicized pay raise for its Chinese workers. This pay raise came in response to criticism over a rash of suicides occurring at this Longhua factory which employs over 300,000 Chinese workers. Foxconn is the world's largest electronics manufacturer and has contracts with several major consumer electronics companies including Apple. The iPhone, iPod touch and iPad pass through the production lines of this manufacturing giant. Unfortunately, the picture of Foxconn painted by Pouille is a stark and often disturbing one. He tells the tale of young Chinese workers, mostly in their late teens and early twenties, who moved here from poor farming communities in rural China. They endure 13 hour shifts with a minimal number of breaks (10 minutes every 2 hours) and work six days a week, though seven is not uncommon when demand is at a peak. The youths live in dormitory-style rooms on the Foxconn campus that house up to eight or nine people from different hometowns, with different work shifts and different jobs within the factory -- a living situation which does not foster personal relationships among the workers. When arriving at the gate leading into the factory, the workers must relinquish their mobile phones to guards and enter a workplace that is rife with military-style managers who do not allow the workers to smile, speak, listen to music, or even sit down. The focus is on productivity with some workers boasting of assembling 3,000 iPhones each day. Pouille provides no answers for what he considers to be dehumanizing conditions present in Chinese manufacturing facilities; he merely brings them to life with stories from the workers themselves and from images of the youth as they head to work and engage in brief times of after-hours play. His essay is definitely worth a read for anyone interested in a behind-the-scenes look at factory life in China's Foxconn city. [Via Fortune]
Toshiba building new factory to churn out iPhone LCDs, says Nikkei
Word on the street -- and by that we mean a Nikkei Business Daily report -- is that Toshiba's dropping a cool 100 billion yen (around $1.2 billion in US currencies) for a new factory in the Ishikawa prefecture, Japan. Its raison d'être? Low-temperature polysilicon LCD panels, primarily for the iPhone (no indication on which version; Apple is said to be investing in a portion of the factory, as well). Construction begins early next year and production is apparently slated to commence in the second half. More than enough time to stockpile unicorn tears for the assembly line.
Intel announces plans to spend up to $8 billion on U.S. factory upgrades
Apple and Google may be sitting on their piles of cash, but Intel sure is dipping into its reserves in a big way these days -- the company has just announced that it's following up its nearly $8 billion acquisition of McAfee with a multi-billion dollar investment in upgrades to its factories in Arizona and Oregon. That investment will total between $6 billion and $8 billion, and include the development of an entirely new fabrication plant in Oregon, in addition to upgrades at the two existing facilities that will allow Intel to move forward with its 22-nanometer manufacturing process. As you can no doubt guess, the investment will also be quite a boon to both areas -- Intel says that the upgrades, which will take place over "several years," will create as many as 8,000 construction jobs and between 800 and 1,000 permanent jobs at the facilities. Head on past the break for the full press release.
Samsung Mobile Display promises 10x increase in production next year, end to AMOLED shortages
We already knew about Samsung's grand plans for expanding its display production in 2011, but now we also have a number to give us a sense of scale: 30 million. That's how many screens the new Mobile Display fab (set to go live in July) will be able to churn out in a month, a vastly superior rate than the current 3 million maximum. Lee Woo-Jong, the display business' marketing VP, tells us its estimates for AMOLED market demand have been revised upwards to 700 million units in 2015, with the new facility obviously being the key cog in making that growth happen. Intriguingly, he also notes that Super AMOLED -- one of the big attractions of the Galaxy S line of Samsung phones -- is not exclusive to Samsung's electronics arm, everyone can apparently use it. That directly contradicts what we heard from Sammy's mobile reps, but then this is hardly the first time that one part of Samsung doesn't know what the other is doing. Still, it's nice to at least dream of a S-AMOLED HTC HD7, no?
Globalfoundries takes ARM Cortex-A9 into 28nm land, looks forward to 20nm chips in 2013
Forget the numbers, here's what matters: Globalfoundries' new production capabilities will lead to "smooth production ramp-ups and faster time-to-market" for its customers. Now consider that this promise relates to scrumptious 28nm Cortex-A9 SOCs and feel free to rejoice. The chip fabricator has just declared itself ready to take orders for ARM's systems-on-chip built using its high-k metal gate 28nm fab process. This fulfills its pledge for mass production in the latter half of 2010, but lest you think Globalfoundries is resting on any nanoscale laurels, it also has a 20nm roadmap to tell you about. It's very simple, really: expect even smaller, even more power-efficient silicon in 2013. We don't know if the future will be bright, but it sure looks like it's gonna be small.
Qualcomm building a $2b Mirasol plant after winning 'major client'?
Well, if this isn't a statement of intent, we don't know what is. Those good old market sources are reporting today that Qualcomm has set aside a cool $2 billion to build a new Mirasol display production plant in Taiwan. The chipmaker already has a Mirasol facility in Longtan, a joint venture with Foxlink, but is said to be the sole investor in this new build. The whole thing has apparently been spurred on by a major client having "already started the design-in process" after seeing production samples of the 5.7-inch, low power, color display. We can't know for sure who that client may be, but Qualcomm's been doing some real heavy flirting with Amazon and all those overtures might (might!) finally have paid off. Of couse, as Jeff Bezos himself said, a color Kindle isn't likely to hit the market anytime soon, and this new factory isn't expected to begin volume production until 2012, but we'll take a slow and speculative roadmap over no roadmap at all.
Foxconn hiring and relocating 400,000 workers
The recent issues at Foxconn haven't actually slowed the company down, apparently -- it has announced that it will be hiring 400,000 more workers at new plants in China, thanks to a 50 percent increase in revenue lately. The total number of people working at Foxconn will be estimated at 1.3 million. Just for comparison's sake, GM employed about 244,500 last year. Foxconn is moving almost that many workers out of its Shenzhen plant -- 170,000 of those workers will be sent to plants closer to their homes. It's crazy to think what the company must be like -- not only are they handling ungodly amounts of people making ungodly amounts of electronic devices, but they're doing it mostly for American companies like Apple, Dell, HP, and so on. This is the giant machine that's pushing out all of those iPhones and Macs that Apple is breaking sales records with. Hopefully the new plants and relocations will help all of the issues that employees there have had in the past.
TSMC begins construction of new $9.3b foundry, wants to sate our constant hunger for chips
TSMC might not necessarily be a household name, but the product of its labors tends to be all over home electronics. Aiming to keep that trend going, the Taiwanese chipmaker has just broken ground on its third 300mm wafer plant, located in Taichung's Central Taiwan Science Park. The new Fab 15 will have a capacity of over 100,000 wafers per month -- earning it the prestige of being described as a Gigafab -- and once operational it'll create 8,000 new skilled jobs in the area. Semiconductors built there will also be suitably modern, with 40nm and 28nm production facilities being installed, and lest you worry about such trivial things as the environment, TSMC says it's doing a few things to minimize the foundry's energy usage and greenhouse gas emission. Then again, if you're going to spend nearly $10 billion on something, would you expect anything less?
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.
44 Chinese workers sue Wintek over screen cleaner poisoning
If you've got an early Apple iPad, chances are its screen was cleaned with a banned substance called n-hexane, which releases a toxic nerve gas upon use. 2,000 workers at Wintek's East China LCD plant went on strike in January, claiming the substance was poisoning them, and now 44 of those reportedly affected are planning to sue. According to reports, the screen cleaner was originally used because it performed better than alcohol, but Wintek has since fired the factory manager who suggested n-hexane and discontinued its use. That didn't keep 62 workers from winding up in the hospital, however. The Guardian interviewed two hospitalized workers last week, and you'll find their stories at our more coverage link below. We're sure you'll agree these Chinese labor violations are getting out of hand -- let's hope this lawsuit spurs government and industry to do something concrete about worker abuse.
