[Pegatron To Invest Up To $1 Billion In Indonesian IPhone Chip Factory
Amancio Mccrae
Hon Hai Precision Industry Co. Ltd., trading as Hon Hai Technology Group in China and Taiwan, and as Foxconn internationally, is a Taiwanese multinational electronics contract manufacturer established in 1974 with headquarters in Tucheng District, New Taipei City, Taiwan. In 2021, the company's annual revenue reached 6.83 trillion New Taiwan dollars (US$214 billion) and was ranked 20th in the 2023 Fortune Global 500. It is the world's largest contract manufacturer of electronics.[3] While headquartered in Taiwan, the company earns the majority of its revenue from assets in China and is one of the largest employers worldwide.[4][5] Terry Gou is the company founder and former chairman.
Foxconn manufactures electronic products for major American, Canadian, Chinese, Finnish, and Japanese companies. Notable products manufactured by Foxconn include the BlackBerry,[6] iPad,[7] iPhone, iPod,[8] Kindle,[9] all Nintendo gaming systems since the GameCube, Nintendo DS models, Sega models, Nokia devices, Cisco products, Sony devices (including most PlayStation gaming consoles), Google Pixel devices, Xiaomi devices, every successor to Microsoft's Xbox console,[10] and several CPU sockets, including the TR4 CPU socket on some motherboards. As of 2012, Foxconn factories manufactured an estimated 40% of all consumer electronics sold worldwide.[11]
Pegatron to Invest up to $1 Billion in Indonesian iPhone Chip Factory
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Foxconn named Young Liu its new chairman after the retirement of founder Terry Gou, effective on 1 July 2019. Young Liu was the special assistant to former chairman Terry Gou and the head of business group S (semiconductor). Analysts said the handover signals the company's future direction, underscoring the importance of semiconductors, together with technologies like artificial intelligence, robotics, and autonomous driving, after Foxconn's traditional major business of smartphone assembly has matured.[12]
Terry Gou established Hon Hai Precision Industry Co., Ltd. as an electrical components manufacturer in 1974 in Taipei, Taiwan. Foxconn's first manufacturing plant in Mainland China opened in Longhua Town, Shenzhen, in 1988.[8]
One of the important milestones for Foxconn occurred in 2001 when Intel selected the company to manufacture its Intel-branded motherboards instead of Asus.[13] By November 2007, Foxconn further expanded with an announced plan to build a new US$500 million plant in Huizhou, Southern China.[14]
In January 2012, Foxconn named Tien Chong (Terry) Cheng chief executive of its subsidiary FIH Mobile Limited.[15] At this time, Foxconn made up approximately 40% of worldwide consumer electronics production.[16]
Expansion was further pursued after a March 2012 acquisition of a 10-percent stake in the Japanese electronics company Sharp Corporation for US$806 million and to purchase up to 50 percent of the LCDs produced at Sharp's plant in Sakai, Japan.[17] However, the agreed deal was broken as Sharp's shares continued to plunge in the following months.[18] In September 2012, Foxconn announced plans to invest US$494 million in the construction of five new factories in Itu, Brazil, creating 10,000 jobs.[19]
On 25 February 2016, Sharp accepted a 700 billion (US$6.24 billion) takeover bid from Foxconn to acquire over 66 percent of Sharp's voting stock.[21] However, as Sharp had undisclosed liabilities which was later informed by Sharp's legal representative to Foxconn, the deal was halted by Foxconn's board of directors. Foxconn asked to call off the deal, but it was proceeded by the former Sharp president. Terry Gou, in the meeting, then wrote the word "義", which means "righteousness", on the whiteboard, saying that Foxconn should honor the deal.[22] A month later, on 30 March 2016, the deal was announced as finalized in a joint press statement, but at a lower price.[23]
In 2016, Foxconn, together with Tencent and luxury-car dealer Harmony New Energy Auto, founded Future Mobility, a car start up that aimed to sell all-electric fully autonomous premium cars by 2020.[24] A Foxconn unit, Foxconn Interconnect Technology, acquired Belkin International for $866m on 26 March 2018.[25]
In July 2019, Foxconn appointed Liu, Young-Way as the new chairman of the Group, which was then ranked 25th among Forbes Top 100 Digital Companies. Soon afterward, Foxconn, led by Young Liu, introduced its "3+3" Model for Transformation, prioritizing the three key industries: electric vehicles, digital health, and robotics industries. The Group is also committed to developing artificial intelligence, semiconductors, and next-generation communication technologies, building blocks in the Group's technology strategy.
In 2020, Foxconn established "Hon Hai Research Institute", with five research centers, each having an average of 40 high technology R&D professionals, all of whom are focused on the research and development of new technologies, the strengthening of Foxconn's technology, and product innovation pipeline, efforts to support the Group's transformation from "brawn" to "brains", and the enhancement of the competitiveness of Foxconn's "3+3" strategy.
On 5 February 2020, Foxconn started producing medical masks and clothing at its Shenzhen factory in China during the Chinese New Year and the height of the COVID-19 pandemic. The company initially said the masks it makes would be for internal employee use. The outbreak of coronavirus disease 2019 led to a worldwide spike in demand for masks, resulting in global shortages.[28] In a letter to employees, Chairman Young Liu said, "I remember clearly how touching it was when Longhua Park produced our first mask at 4:41am on 5 February. It was the simplest yet most important product Foxconn has ever made. It not only supplied the group's need for epidemic prevention it also contributed to the general public and boosted the morale of the group. All that resulted from our colleagues' hard work."
Following almost a year of public controversy regarding its COVID-19 vaccine shortage;[29][30][31][32] in June 2021, Taiwan agreed to allow founder Terry Gou, through his Yongling Foundation charity,[29] to join with contract chip maker TSMC, and negotiate purchasing COVID-19 vaccines on its behalf.[30][29] In July 2021, BioNTech's Chinese sales agent Fosun Pharma announced that Foxconn and TSMC had reached an agreement to purchase 10 million BioNTech COVID-19 vaccines from Germany for Taiwan.[29][30] The two technology manufacturers pledged to each buy five million doses for up to $175 million,[29] for donation to Taiwan's vaccination program.[30]
In 2020, Foxconn initiated MIH Alliance to create an open EV ecosystem that promotes collaboration in the mobility industry, with more than 2,200 companies joining the open standard since its launch. The company announced plans to become more involved as a contract assembler of EVs. In the same year, Foxconn partnered with Fiat Chrysler Automobiles N.V. and Yulon Group for a move into EVs. Foxconn has been holding the Hon Hai Tech Day (HHTD) event since 2020 to showcase its latest achievements. In HHTD21, Foxconn introduced for the first time three self-developed EV models: the Model C recreational vehicle, the Model E sedan, and the Model T electric bus.
In January 2021, Foxconn and Geely Holding Group signed a strategic cooperative agreement and will establish a joint venture company to provide OEM and customized consulting services relating to whole vehicles, parts, intelligent drive systems, and automotive ecosystem platforms to global automotive enterprises and ridesharing companies. In February 2021, it announced an agreement with EV startup Fisker Inc. to jointly produce more than 250,000 vehicles a year. In March 2021, Foxtron, the JV company of Foxconn and Yulon, announced cooperation with Nidec to strengthen the power on EV key component development.
In January 2022, Foxconn signed an MoU with the Indonesian Ministry of Investment/BKPM, IBC, Indika, and Gogoro to jointly develop a sustainable new energy ecosystem in Indonesia that focuses on electric batteries, electric mobility, and associated industries. In May 2022, Foxconn announced the completion of the Lordstown Motors facility purchase and further signed a contract manufacturing agreement and a joint venture agreement with LMC for product development.
In mid-2021, Foxconn announced that the company will enter into more semiconductor production and will be expanding into supplying chips for electric vehicles (EVs) and electronics equipment used for healthcare.[34] In May 2021, Foxconn and Yageo Group entered into a joint venture agreement to form XSemi Corporation ("XSemi") to extend the businesses into the semiconductor industry, including product development and sales. Based in Hsinchu, Taiwan, XSemi aims to consolidate the strengths and resources of the two market leaders, in addition to the upcoming multifaceted collaborations with leading semiconductor companies in product design, process and capacity planning, and sales channel. In August 2021, Foxconn acquired a Macronix 6-inch Wafer Fab for US$90.8mn.
The largest Foxconn factory is located in Longhua Subdistrict, Shenzhen, where hundreds of thousands of workers (varying counts include 230,000,[39] 300,000,[41] and 450,000)[42] are employed at the Longhua Science & Technology Park, a walled campus[8] sometimes referred to as "Foxconn City".[43]
Covering about 3 km2 (1.2 sq mi),[44] the park includes 15 factories,[43] worker dormitories, four swimming pools,[45] fire brigade,[8] own television network (Foxconn TV),[8] city centre with grocery store, bank, restaurants, book store, hospital.[8] While some workers live in surrounding towns and villages, others live and work inside the complex;[46] a quarter of the employees live in the dormitories.
Another Foxconn factory "city" is located at Zhengzhou Technology Park in Zhengzhou, Henan province, where a reported 120,000 workers were employed as of 2012,[47] later, 200,000 workers were employed as of November 2022.[48] The park produces the bulk of Apple's iPhone line and is sometimes referred to as "iPhone City".[49]
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