Foxconn

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Hon Hai Precision Industry
Type	Public (TSEC: 2317)
Founded	1970
Headquarters	Taipei, Taiwan
Key people	Terry Guo (Chairman/President)
Industry	Electronics
Revenue	$28.3 billion USD (2005)
Operating income	$1.5 billion USD (2005)
Net income	$1.3 billion USD (2005)
Employees	63,670
Website	foxconnchannel.com

Foxconn (富士康) (SEHK: 2038) is the trade name of Taiwanese firm Hon Hai Precision Industry Co. (Ltd.) (LSE: HHPD) (NASDAQ: HNHPF). The company was founded in 1970 as a manufacturer of plastic products (notably connectors) and since 1991 has been listed on the Taiwanese stock exchange. Foxconn is one of the largest manufacturers of electronics and computer components worldwide. Although sometimes referred to as an Original Equipment Manufacturer, Foxconn would be more accurately described as an Original Design Manufacturer. Among other things, Foxconn produces the Mac mini and the iPod for Apple Computer; Intel-branded motherboards for Intel Corp.; various orders for American computer retailers Dell, Inc. and Hewlett Packard; the Xbox 360 for Microsoft; and cell phones for Motorola.^[1] It is Taiwan's largest private company, with a revenue of NT$ 413.35 billion (c. US$13 billion) in 2004.^[2]

Since 1993, Foxconn has possessed manufacturing plants in mainland China, and beginning 1994, it purchased development centres in the United States and Japan. The years 1998 and 1999 saw the establishment of additional manufacturing plants in Great Britain and the USA. As of 2006, of the remaining 4 plants contracted to build HP computers, only 1 remains open in the USA. It is located in Plainfield, Indiana.^[3]

Contents 1 Cases 2 Motherboards 3 Graphics cards 4 Consoles 5 iPods 6 Computers 7 Cell Phones 8 Sites 9 Criticism 10 Miscellaneous 11 References 12 External links

[edit] Cases

Foxconn makes a range of computer cases designed to appeal to computer modders as well as system builders.

[edit] Motherboards

Foxconn designs and manufactures several different motherboards, with many being sold to OEM distributors such as Dell and HP. Starting in 2003 the company has produced retail boards under its own brand name.

[edit] Graphics cards

In March 2006, Foxconn branched into the manufacture of graphics cards, starting with a GeForce 7900GTX (branded as PX7900GTX) at clock speeds of 550 MHz / 1320 MHz for the core and memory respectively, but with intentions to market both NVIDIA and ATi boards.

[edit] Consoles

Foxconn OEMs the Xbox 360, PlayStation 2, PlayStation 3 and Nintendo Wii.

[edit] iPods

Foxconn is one of the OEMs for iPod nanos.

[edit] Computers

In addition to providing PCA's and Chassis, Foxconn manufactures computers for HP in accordance with strict SOP rules.

[edit] Cell Phones

Foxconn OEMs Motorola cell phones.

[edit] Sites

Foxconn has offices in China, Taiwan, Hungary, Czech Republic, United States, Mexico and most recently two facilities opened in Brazil.

[edit] Criticism

In June 2006, allegations of Foxconn operating sweatshop facilities came around as reported by Mail that were later denied by Foxconn.^[4][5] Apple launched an investigation into such claims.^[6] The result was that the sweatshop claims were unfounded but at peak production times some of the employees were working more hours than the Apples acceptable "Code of Conduct" limit of 60 hours, and 25% of the time workers did not get at least one day off each week[1]. These same workers complained there was not enough overtime in off peak periods.

Although admitted it makes workers do an extra 80 hours overtime per month while the local labor law only permits 36 hours[2], Foxconn are now suing the journalists (Wang You and Weng Bao of China Business News). The demand was for $3.77 million originally and have lodged a successful Chinese court ruling to have the journalists' assets frozen. ^[7] Many think the astronomical demands and the court ruling were absurd.^[8] Reporters Without Borders sent a letter to Apple Computer CEO Steve Jobs to implore Foxconn to drop the case ^[9]. Later Foxconn reduced the demand to a symbolic 1 yuan (12 U.S. cents), withdrew the request to freeze the journalists' personal assets, and initiated legal proceedings to sue their employer China Business News[3]. Many have heralded these turn of events as evidence of mass media and negative publicity forcing the hand of big business; leading them to a more appropriate course of action.^[10]

Foxconn tapped Indiana’s manufacturing labor force when they opened a computer manufacturing facility for Compaq in May 2000. Initially promising, the facility was plagued by high turnover rate and quality issues. Management met in December 2000 and agreed to close the facility by June 2001. Remaining manufacturing for Compaq was transferred to Houston, TX, and Fullerton, CA. After Hewlett Packard acquired Compaq, Foxconn agreed to open manufacturing again in Indianapolis, IN starting on May 2003, which later transitioned to Plainfield, IN in early 2006.^[11] Many employees that worked for Foxconn’s Indianapolis plant in May 2000 were called upon to return, but many refused. Those that did return would soon leave citing poor management and little opportunities.

On October 25, 2006, Hendricks County Sheriff’s department were called to escort several employees from the building, including shipping supervisor Phillip Maiden^[12] pending further investigation of the high dollar value of missing HP computers. Foxconn officials hope to conclude this investigation shortly.

[edit] Miscellaneous

Foxconn's CEO, Terry Guo, recently purchased a $30 million castle in the Czech Republic.

[edit] References

1. ^ "Inside Apple's iPod Factories", MacWorld website, June 12, 2006
2. ^ "Foxconn retains its title as Taiwan’s largest privately held company", Digitimes, January 11, 2005
3. ^ "Taiwan-Invested Q-Edge Expands Operation in Indiana"
4. ^ "iPod City: inside Apple's iPod factories" AppleInsider, 12 June, 2006
5. ^ "Foxconn: iPod sweatshop claims a 'vicious attack'", AppleInsider, June 19, 2006
6. ^ "Apple begins audit on iPod sweatshop claims", AppleInsider, June 20, 2006
7. ^ "Foxconn sues Chinese journalists over iPod factory story" ilounge, 2006
8. ^ Shenzhen court ruling on Foxconn case "absurd": experts Xinhua, 2006
9. ^ Apple Computer urged to intercede for two reporters who exposed bad conditions at supplier’s plants, Reporters Without Borders
10. ^ "iPod Factory Just Kidding About Destroying Reporters' Lives", Techdirt, 2006
11. ^ "Taiwan-Invested Q-Edge Expands Operation in Indiana"
12. ^ "Hendricks County Superior Court No 2"

[edit] External links

• foxconnchannel.com
• Inside Apple's iPod factories
• Mac Rumors: New MacBooks from Foxconn?
• Get The Latest News And Data Regarding Foxconn (the registered tradename of Hon Hai)