Foxconn Closing Chinese Factories!?

With 12 suicides and alleged torture to deal with in the media it looks as though Taiwanese electronics giant Foxconn is planning to ditch China all together in favor of Indian and Vietnamese manufacturing bases. This would ultimately mean 800,000 Chinese workers will be out of work and will also lead to the demise of local businesses around Foxconn’s mammoth Shenzhen plant, who rely on workers for their custom.

Gizchina News of the week

The news is still unconfirmed, but even the idea of Foxconn leaving the mainland must be a huge blow to all their workers who were promised 20-30% pay rises only weeks ago!

We’ll post more news when we get it!

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  1. Jack
    June 12, 2010

    This sounds ominous doesn’t it? But I would doubt that Foxconn would move anything wholesale to Vietnam and especially India. The whole reason that Taiwan businesses have such extensive operations in China isn’t just for cost reasons. Due to language/cultural advantages, and keen political support by the Chinese government to integrate Taiwan’s future to the mainland’s, any Taiwanese management wanting to relocate sophisticated processes will find it difficult to move to Vietnam/India where they’ll be just another foreign company.

    This bit of new is probably true, to an extent.
    Most likely, it’s designed to gain leverage with the workers and the various levels of government.

  2. Alec
    June 28, 2010

    Anyway, I wonder that Apple still consider to have a partnership with Foxconn. Seems that profit goes for human rights and people’s lives.
    I also wonder that Chinese people still buy Apple stuff after all.
    Also, the Brother of the Foxconn CEO wants to setup a lots of Apple stores in China. I do not think that setting up Apple stores in Vietnam is as profitable.
    What do you think Apple key account managers got in cash from Foxconn for the Apple store deal?

    • July 19, 2010

      To be fair to Apple they are just one client of Foxxcon. Dell and others have products made in that very factory the suicides took place, it just so happens people like to point a stick at Apple when ever they can. I’m sure all companies involved are doing what they can to make things better.

  3. Mark Abaya
    July 16, 2010

    Couldnt it get even better? Suicides are just signs that people are not happy with their jobs.

    Foxconn should re-evaluate their position, and probably change strategy to a more distinctive location. Malaysia, Philippines and Thailand are better option though.

    • July 19, 2010

      Or it could be a scare tactic to stop things like this happening again?