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Foxconn booms amid controversy

Foxconn booms amid controversy

Foxconn, part of Taiwan's Hon Hai Precision Industry Co., is the world's largest contract maker of electronics. Its long list of big-name customers includes Apple Inc., Sony Corp., Dell Inc. and Nokia Corp. and Hewlett-Packard Co.
Across China, the company employs more than 800,000 people. Twelve workers had allegedly committed suicide this year at the Shenzhen complex, and another worker killed himself in January at a plant in northern China.
Hon Hai expanded its operations in China in 1988 with setting production bases in Shengzhen. In 1996, Lung Hua technology village opened. The value of exports from Foxconn had topped US$55.6 billion, equivalent to 3.9% of the total exports in China.

After a grandeur tour led by the chairperson of Foxconn Terry Gou with 100 psychiatrists and 200 reporters in its Shenzhen factories in the Guangdong Province, China, the thrilling atmosphere still hovers around workers as another Foxconn worker jumped to his death May 26 night, the 12th alleged suicide, local media reports said.
The death of this worker marked a spate of suspected suicides which left 10 dead and 2 severely injured. RTHK (Radio Television Hong Kong) quoted Xinhua News Agency reports, saying that a worker was found dead in front of the D2 dormitory in Foxconn’s Long Hua factory. The primary supplier for Apple products had confirmed the news.
Terry Gou on Wednesday apologized for the alleged suicidal tragedies after flying to Shenzhen with his private jet for a quickly arranged media tour. He bowed several times and promised to withdraw the original plan demanding staff not to take their own lives. Gou also noted some of the victims had personal issues that he could not help them.
Gou also defended the company’s personnel management and noted that necessary measures to prevent suicides like psychological counseling and mutual aid groups are already underway.
Hon Hai recently announced its consolidated results for three months ended March 31, 2010.
While comparing the first three months of 2010 with the same period in 2009, net sales increased by 43.9% to NT$ 544.3 billion; Net income improved by 34.8% to NT$ 17.9 billion, yet, in midst of the economic turmoil led global economic uncertainty and industry shrinkage, the global OEM giant has again achieved market share gain and see the broad range of integrated benefits is gradually emerging.
What is noteworthy is that some industrial analysts estimate that the consolidated net sales of the first half of year might top NT$1 trillion, making it possible that the annual sales achieve an amazing NT$2 trillion.

According to reports of foreign-funded firms, the OEM giant will propose an array of profitable products in the second half of the year – including 4-G handsets and Microsoft’s NATAL, a motion-recognition system. Furthermore, multi-functional printers and optics products under the flag of Hong Hai also see an upsurge of sales recently.

Strong demands of Apple’s iPhone and iPad are said to be the main triggers for growth of revenue for the company. With the iPhone 4G due in the second half of year, another surge of sales can be expected.

"Despite the general uncertainty and a challenging industry, the Company managed to gain further market share," said Edmund C.A. Ding, Spokesperson. "The visibility remains short, yet, our determination and our dedication to strategic partner customers’ success and to the dream of making the usage of environmentally-friendly electronics attainable luxury to all mankind remain. Aside from being a recognized EICC member, we determine to continue revolutionize the manufacturing services providing industry by not only strive for the best speed, quality, engineering services, efficiency and value-added, but also enforce social and environmental responsibility standard to maximize our stakeholders’ long term value at the same time“.