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'Foxconn' Articles

Apple and Foxconn Admit Hiring Too Many Temporary Workers in China to Assemble iPhones, Potentially Violating Labor Laws

Apple and manufacturing partner Foxconn have admitted to recruiting too many temporary staff in one of the world's biggest iPhone factories, following a report from a non-profit advocacy group alleging harsh working conditions (via Bloomberg). China Labor Watch (CLW), which investigates conditions in the country's factories, published its report on Sunday accusing the two companies of breaching several Chinese labor laws, including one barring temporary staff from exceeding 10 percent of the total workforce. CLW said undercover investigators worked in Foxconn's Zhengzhou plant in China and found that temporary staff, known as "dispatch workers," made up about 50 percent of the workforce in August, when the supply chain is usually ramped up ahead of new iPhone releases. Chinese labor law allows a maximum of 10 percent. Our recent findings on working conditions at Zhengzhou Foxconn highlights several issues which are in violation of Apple’s own code of conduct. Apple has the responsibility and capacity to make fundamental improvements to the working conditions along its supply chain, however, Apple is now transferring costs from the trade war through their suppliers to workers and profiting from the exploitation of Chinese workers.In a statement, Apple said it investigated the percentage of temporary workers among the overall workforce and found it "exceeded our standards," and said it was working with Foxconn to "immediately resolve the issue." In addition, Apple said it had found that interns at a supplier facility worked overtime at night, something which

2019 iPhones Won't Have 'iPhone' on the Back According to So-Called Foxconn Worker

We're likely less than a month away from a trio of new iPhones, and ahead of time, an anonymous user claiming to be a Foxconn factory worker in China has shared alleged details about the upcoming devices on Chinese question-and-answer site Zhihu. The list was posted July 30 and surfaced on Slashleaks today. While many of the details in the list have already been rumored, or at the very least sound plausible, this information is unverified and obviously could be faked. In other words, keep your expectations in check. Starting with design, the alleged Foxconn worker claims at least one of the new iPhones will be available in an all-new new dark green color. This lines up with a previous report from Japanese blog Mac Otakara that claimed the next iPhone XR will be available in new green and lavender finishes. The rear glass is said to have a matte appearance, in line with analyst Ming-Chi Kuo claiming all three 2019 iPhones will feature frosted glass casing. Interestingly, the leak suggests that the "iPhone" branding will be removed from the back of the devices. This isn't something we've heard before, but it is certainly possible that Apple believes the iPhone is now distinguishable enough for the name to be removed in favor of a more minimalistic design. As for the front, the design of the 2019 iPhones is said to be virtually the same as 2018 models, including the notch. However, due to the widely rumored removal of 3D Touch, the display is expected to be slightly thinner. The supposed Foxconn employee claims the next iPhone XS Max will have a 3,969

Foxconn Ramps Up Seasonal Hiring Spree Ahead of 2019 iPhones

We're likely just six weeks away from Apple unveiling a trio of new iPhones, and on cue, the supply chain is preparing for the new devices. As it has for the past several summers, Apple's primary manufacturer Foxconn is ramping up its seasonal hiring spree, according to the Economic Daily News. The report claims Foxconn is offering a one-time bonus of 4,500 Chinese yuan, or roughly $650, to employees who renew their contracts right now. Foxconn needs as many hands on deck as possible at its factory in Shenzhen, China to assist with mass production of the upcoming iPhones, as Apple's first-week sales will likely be in the millions of units as usual. Apple is widely expected to debut three new iPhones in September with the same 5.8-inch, 6.1-inch, and 6.5-inch sizes as the 2018

Apple Reportedly Considering Moving Up to 30% of Production Out of China to Diversify Supply Chain

With the U.S.-China trade war seemingly showing no signs of slowing down, a new report claims that Apple is getting serious about diversifying its supply chain in an effort to reduce its reliance on Chinese manufacturing. iPhone disassembly robot Daisy Specifically, Apple has asked several of its major suppliers to evaluate the cost implications of shifting 15 to 30 percent of their production capacity from China to Southeast Asia countries as it prepares for a "fundamental restructuring of its supply chain," according to the Nikkei Asian Review.Key iPhone assemblers Foxconn, Pegatron, Wistron, major MacBook maker Quanta Computer, iPad maker, Compal Electronics, and AirPods makers Inventec, Luxshare-ICT and Goertek all have been asked to evaluate options outside of China, multiple sources say. Many other Apple suppliers such as print circuit board and casing providers are closely monitoring where these major assemblers would shift their production.The countries being considered for diversification include Mexico, India, Vietnam, Indonesia, and Malaysia, with India and Vietnam among the favorites for iPhone assembly, according to the report. Apple supplier Wistron already assembles a limited quantity of iPhones in India. As part of the efforts, Apple reportedly has a so-called "capital expense studies team" tasked with negotiating with suppliers and governments. While these plans are said to have been triggered by the trade war, the report claims that Apple has decided the risks of relying so heavily on manufacturing in China are "too great and even rising" even

Foxconn: Apple Has Capacity to Make All US-Bound iPhones Outside of China if Needed

Apple manufacturing partner Foxconn says it has enough capacity to make all iPhones bound for the U.S. market outside of China if the current trade war between the two countries intensifies. That's according to Foxconn board nominee and semiconductor division chief Young Liu, who made the comments at an investor briefing in Taipei on Tuesday, reports Bloomberg. As the U.S.-China trade war gets more unpredictable, Foxconn – also known as Hon Hai – will "fully support Apple if it needs to adjust its production," he said. "Twenty-five percent of our production capacity is outside of China and we can help Apple respond to its needs in the U.S. market," said Liu, adding that investments are now being made in India for Apple. "We have enough capacity to meet Apple’s demand."Liu conceded that Apple has not given its Taiwanese partner instructions to move production out of China, but he said Foxconn is "capable of moving lines elsewhere according to customers' need." The Hon Hai senior executive said it will respond swiftly and rely on localized manufacturing in response to the trade war, just as it saw the need to have a base in the U.S. two years ago before the trade dispute began. Foxconn has been considering expanding its production plants in India as a way to diversify its supply chain away from China, where most of the Taiwan-based firm's facilities currently reside. Apple manufactures most of its iPhones through Foxconn, but the latter's growing India base provides security in the face of Apple's vulnerability to rising U.S.-China tensions over trade

Foxconn Reportedly Investing in MicroLED Display Tech for Future iPhones

Foxconn is broadening investment in MicroLED display technology in a bid to win orders from Apple for future iPhones, according to a report from the Chinese-language Economic Daily News (via DigiTimes). MicroLED is widely considered to be Apple's next step after OLED, which it currently uses for the Apple Watch and iPhone XS. MicroLED displays have many of the same advantages that OLED displays have over LCDs, including improved color accuracy, improved contrast ratio, faster response times, and true blacks – given both have self-lit pixels. However MicroLED displays are thinner, brighter, and more energy efficient than OLED panels. MicroLED displays also have inorganic gallium nitride-based LEDs, which have a longer lifespan than the organic compound used in OLED displays and should make them more resistant to burn-in issues. Apple's interest in MicroLED was first reported in 2014, when it acquired MicroLED display maker LuxVue. The following year it was discovered that the iPhone maker had also opened a secretive laboratory in Taoyuan, Taiwan to research display technologies like OLED and MicroLED for future devices. In 2017, the company reportedly scaled back its efforts at that center, possibly switching to a facility closer to home: Apple is believed to have a secretive manufacturing plant in Santa Clara, California, where it is designing and producing display test samples using MicroLED technology. Image Credit: TrendForce Taiwan Semiconductor Manufacturing Company (TSMC) is understood to be providing support for producing smaller form factor

Foxconn 'Remains Committed' to Wisconsin Plant and Promise of Eventually Employing 13,000 Workers

Apple supplier Foxconn today said that it remains committed to its contract to build a display plant and research facility in Wisconsin (via Reuters). The company's comment comes a few days after Wisconsin Governor Tony Evers said that the state wanted to renegotiate the Foxconn deal, partly due to the belief that the Taiwanese company was not expected to reach its goal of creating 13,000 jobs in Wisconsin. Foxconn's original goal for the project was to eventually employ 13,000 workers on the site, and today the company has confirmed that it "remains committed" to this plan. Foxconn initially announced the project in 2017 at a White House event alongside President Donald Trump. Governor Evers recently took office in January 2019, inheriting the deal to Give Foxconn $4 billion in tax breaks and other incentives. “Foxconn’s commitment to job creation in Wisconsin remains long term and will span over the length of the WEDC (Wisconsin Economic Development Corporation) contract and beyond.” Over the years, Foxconn's Wisconsin plant has gone through many iterations as the supplier faced new roadblocks and cost-cutting measures. The plant was designated as a TV display factory in its early stages, then pivoted to small to medium-size displays for smartphones, infotainment systems, and other "niche products". In early 2019, Reuters reported that Foxconn would greatly scale back its plans to produce displays of any kind in Wisconsin and instead focus on research and development. The news came from Louis Woo, assistant to Foxconn CEO Terry Gou, who said Foxconn is "not

Foxconn CEO Terry Gou Plans to Step Back, Confirms iPhone Production Will Begin in India

Terry Gou, the chairman and CEO of Foxconn, plans to step back from day-to-day operations of the company in the coming months. Getty Images/New York Post From the South China Morning Post:"I'm already 69 years old. I hope to pass down my 45 years of experience to young people," said Gou on the sidelines of an event in Taipei on Monday. "That's the goal I set up – let young people learn sooner and take over my position sooner. Then I have more time to make long-term planning for the company."While it appears that Gou will soon resign as Foxconn chairman, he hopes to remain involved in larger strategic decisions. Gou, 69, founded Foxconn in Taiwan in 1974. The company has grown to become the world's largest electronics manufacturer, assembling well-known products ranging from iPhones and iPads to the Nintendo Switch and PlayStation 4. Gou also confirmed that Foxconn will soon begin iPhone production in India, although he did not elaborate on the plans. Last week, a report claimed that Foxconn will begin production of the iPhone X in India this July. Foxconn rival Wistron already assembles older models like the iPhone SE and iPhone 7 in India. Last week, Apple announced that Foxconn and over two dozen other companies in it supply chain have committed to using 100 percent renewable energy when manufacturing Apple

Foxconn to Begin Production on iPhone X in India This July

Foxconn is set to begin production of the iPhone X in India this July, according to a report by The Economic Times. Production will take place at Foxconn's Chennai plant in eastern India. According to an official with knowledge of the company's plans, Foxconn hopes to step up production capacity and "diversify to even higher models going forward." Today's report sees Foxconn's plans to move some of its production outside of China begin to take shape, following the manufacturer's trial production of the iPhone X earlier this month. News about Foxconn's plans to produce high-end iPhones in India emerged late last year. According to a Reuters report, Foxconn invested $356 million to expand an existing plant and take on the new iPhone production, creating as many as 25,000 jobs in the process. Foxconn has been considering expanding its production plants in India as a way to diversify its supply chain away from China, where most of the Taiwan-based firm's facilities currently reside. Apple manufactures most of its iPhones through Foxconn, but the latter's growing India base provides security in the face of Apple's vulnerability to rising U.S.-China tensions over trade and technology. Previously, Apple partnered with Wistron to produce iPhones in India, including the iPhone SE and iPhone 6s. When building iPhones in India, Apple is able to avoid import duties placed on imported smartphones and their components. More production in the country also helps Apple meet India's 30 percent local sourcing requirement that would allow Apple to open its own local retail

iPhone Assembler Foxconn and Other Suppliers Pledge to Use 100% Renewable Energy for Apple Production

Apple today announced it has nearly doubled the number of suppliers that have committed to run their Apple-specific production on 100 percent renewable energy, bringing the total number to 44. The list of newly committed suppliers includes, among others, Gorilla Glass maker Corning, Face ID module provider Finisar, A-series chipmaker TSMC, Apple Watch manufacturer Quanta Computer, AirPods assembler Luxshare, and iPhone assemblers Foxconn, Pegatron, and Wistron. Apple now expects to add five gigawatts of renewable energy to its supply chain by 2020, exceeding its goal of four gigawatts in that timeframe. Apple says that manufacturing makes up 74 percent of its carbon footprint. To address this, Apple and its suppliers have invested in or procured a mix of clean energy technology, including wind and solar. Apple has also further expanded its supplier education and support initiatives. Apple also announced that it has allocated all of its $2.5 billion in green bonds, the largest amount of any U.S. corporation. Through this, the company says it has contributed to 40 environmental initiatives around the world, including projects Apple has created to cover its entire electricity load. Apple's Green Bonds also support environmental research and innovation. Projects include solar rooftops in Japan, an aquifer to conserve water in Oregon, and the creation of a custom alloy made of 100 percent recycled aluminum that is now found in the latest MacBook Air and Mac mini. A year ago, Apple announced that its global facilities, including retail stores, offices, and

Apple Partner Foxconn Nears Trial Production of Latest iPhones in India

iPhone assembler Foxconn is close to trialing production of Apple's latest smartphones in India, according to a new report out today from Bloomberg. The trial run of the iPhone X range of devices would come before Foxconn starts full-scale assembly at its factory outside the southern city of Chennai, the people said, asking not to be identified as the plans are private. Wistron Corp. already produces older models, such as the iPhone 6s, iPhone SE and iPhone 7, at a plant in Bangalore.Foxconn has been considering expanding its production plants in India as a way to diversify its supply chain away from China, where most of the Taiwan-based firm's facilities currently reside. Apple currently manufactures most of its iPhones through Foxconn, but the latter's growing India base provides security in the face of Apple's vulnerability to rising U.S.-China tensions over trade and technology. Manufacturing iPhones in India could also help Apple lower prices by allowing it to avoid a tariff that adds 20 percent to devices imported from China. It could also help Apple meet India's 30 percent local sourcing requirement that would allow the company to open its own retail stores in the country. Apple's market share in the country dropped to about one percent in 2018, from about two percent the previous year, as the phones' higher prices deter customers. Consumers in India bought more than 140 million smartphones last year but just 1.7 million of those were sold by Apple, with users favoring cheaper homegrown models from the likes of Xiaomi. Late last year it was reported

Foxconn's Wisconsin Site Will No Longer Be a Factory for Smartphone Displays, Instead Focusing on R&D

Foxconn is once again changing plans for its upcoming Wisconsin-based plant in the United States, according to a new report out today by Reuters. Originally set to produce large television displays, and then small to medium displays for smartphones, the location will now pivot to become largely focused on research and development. Foxconn intends to hire "mostly engineers and researchers" instead of manufacturing workers at the Wisconsin plant. The plans to build smartphone displays, for companies like Apple, have either been greatly scaled back or shelved completely. This information comes from Louis Woo, assistant to Foxconn CEO Terry Gou. Although the company has yet to formally announce this pivot, Woo says that Foxconn is "not building a factory" in Wisconsin at this point. According to Woo, the steep cost of making advanced screens for TV sets and other devices in the United States led to the decision. Instead, Woo notes that Foxconn's more profitable solution is to make LCD panels in greater China and Japan, ship them to Mexico for final assembly, and import the finished products to the United States. Rather than a focus on LCD manufacturing, Foxconn wants to create a “technology hub” in Wisconsin that would largely consist of research facilities along with packaging and assembly operations, Woo said. It would also produce specialized tech products for industrial, healthcare, and professional applications, he added. “In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment,” Woo said. The Wisconsin project

iPhone Assembler Foxconn Looks to India to Diversify Supply Chain Away From China

A larger portion of the world's iPhones could one day be manufactured in India, if a new report by the Wall Street Journal proves accurate. According to Tuesday's report, Apple's main iPhone assembler Foxconn is considering building production plants in India as a way to diversify its supply chain away from China, where most of the Taiwan-based firm's facilities currently reside. Executives at Foxconn, a contract manufacturer that assembles a large portion of the world’s iPhones in China, are studying whether to include an India project in budget plans, one of the people said. Senior executives, possibly including Chairman Terry Gou, plan to visit India after next month’s Lunar New Year to discuss plans, the people familiar said.Apple currently manufactures most of its iPhones through Foxconn, but the latter's potential new project in India points to Apple's vulnerability to rising U.S.-China tensions over trade and technology. Both Apple and Foxconn declined to comment on today's report, but it is thought that manufacturing iPhones in India could help Apple lower prices by allowing it to avoid a tariff that adds 20 percent to devices imported from China. Foxconn already has plants in India, and late last year it was reported that the firm would invest around $356 million to expand its facilities there to begin assembling Apple's high-end iPhones. Wistron assembles iPhone SE and iPhone 6s models in India exclusively for the Indian market, but the December report didn't say whether the high-end iPhones assembled by Foxconn would be sold in the country or elsewhere

Foxconn Cut 50,000 Contract Workers Months Ahead of Schedule Due to Poor iPhone Demand

Apple supplier Foxconn has let go around 50,000 contract workers at its iPhone factory in Zhengzhou, China, with the first cuts happening in October 2018. As one source with knowledge of Foxconn's plans told Nikkei, the scale of the cuts is not what stands out, but the fact that it's significantly earlier than previous years. "It's quite different this year to ask assembly line workers to leave before the year-end," the source stated. Foxconn typically renews workers' contracts every month from August until January, at which point the workforce is scaled back for slow iPhone production season. This year, those cuts came as much as three months early. The same is true for other Apple suppliers according to today's report, with Pegatron canceling monthly labor contracts last November. One source said that Pegatron's cuts "happened sooner than in the past because of poor demand," referring to the iPhone. Even smaller companies in Apple's supply chain reportedly cut down on their workforce, with one unnamed component supplier based in Shenzhen asking 4,000 workers to take an extended vacation from October to March. On March 1, the company will decide whether or not to lay the workers off. For Foxconn, the company is preparing for restructuring throughout the company, merging business units that make iPads and MacBooks with the division making Dell and Acer computers. This means "steep cuts" to management, human resources, administrations, accounting, and utility support jobs, totaling 100,000 jobs removed by the end of 2018 and costs cut by $2.96 billion in

Apple Partnering With Foxconn to Build High-End iPhone Models in India Next Year

Following the iPhone SE and iPhone 6s, Apple will begin assembling its high-end iPhones in India sometime in 2019, according to a new report today by Reuters. Instead of Wistron, Foxconn will build the high-end iPhones, and these models are said to be the most expensive flagship devices offered by Apple, including the iPhone X family. Local sources state that the work will occur in Foxconn's plant in Sriperumbudur town in the southern state of Tamil Nadu. Foxconn will reportedly invest 25 billion Indian rupees ($356 million) to expand the plant, part of which will be focused on the production of the flagship iPhones in India. The investment is estimated to create as many as 25,000 jobs. The report doesn't say whether these high-end iPhones will be sold in the Indian market or elsewhere in the world. Earlier this year, Apple revamped its India strategy in order to stay afloat in the country's smartphone market. This revamped strategy includes better and longer-lasting retail deals with higher sales targets, the debut of official Apple retail stores in India, an overhaul of the company's relationship with independent retailers, and improving apps and services for local users. This is said to include a new version of Apple Maps aimed at Indian users to launch by 2020. The expansion of high-end iPhone assembly outside of China could also be an attempt by Apple to "limit the impact" of a trade war between the United States and China: For Apple, widening assembly beyond China is critical to mitigate the risks of the Sino-U.S. trade war. Foxconn, the world’s biggest

iPhone Suppliers TSMC and Foxconn Report Strong November Revenue

Two of Apple's largest suppliers have reported healthy jumps in monthly revenue, suggesting fears of weak iPhone demand may be overblown (via Bloomberg). Asian firms TSMC and Foxconn (Hon Hai) both posted a 5.6 percent rise in November sales, reversing a recent trend of Apple suppliers reducing production or revenue outlooks to reflect lowering demand for Apple's smartphones. Foxconn posted NT$601.4 billion ($19.5 billion) in revenue, a record for the month of November, which puts the iPhone assembler on track for its fastest pace of annual growth in years. TSMC, maker of Apple's system-on-chips like the A12 processor, reported revenue of $3.1 billion, a lower figure than the previous month but still considered strong overall. Executives at the chipmaker have said they expect demand for premium devices to help offset lethargy in the crypto-mining market, which it has heavily invested in. Apple accounts for close to half of main iPhone-assembler Hon Hai's revenue and about a fifth of TSMC's, according to data compiled by Bloomberg. The figures offer something of a riposte to the narrative that sales of Apple's iPhone XR and XS have been weaker than expected. For example, last week it was reported that Apple moved marketing staff off other projects to focus on bolstering sales of the latest iPhone lineup in late October. Apple's next earnings call is in January, when investors will get an idea of how the company did over the holiday season, although Apple recently stopped reporting real unit numbers for its major product categories, so investors will

Apple Has Certified Key Suppliers of 2018 iPhones as Volume Production Set to Begin

Apple has successfully completed certification of key component suppliers for its widely rumored trio of 2018 iPhones, expected to be announced in September, according to Taiwanese publication Economic Daily News. 2018 iPhone imitation models via Marques Brownlee/MKBHD The report claims that these suppliers have begun shipping large quantities of camera lenses, metal chassis, and other components to larger manufacturers, including Foxconn, which is expected to assemble the majority of 2018 iPhones, according to Taiwanese research firm Fubon Securities. In particular, Fubon Securities said Foxconn will assemble every second-generation iPhone X, 90 percent of units for the so-called iPhone X Plus, and 75 percent of units for an all-new, lower-priced 6.1-inch iPhone. Taiwanese manufacturer Pegatron is said to fulfill all of the remaining orders. While the supply chain is clearly gearing up for 2018 iPhones, it's unclear when volume production of fully-assembled devices will begin. Foxconn recently began its seasonal hiring spree in preparation. Foxconn typically ramps up manufacturing of new iPhones over the summer, for release in September, but last year was somewhat of an anomaly. While the iPhone 8 and 8 Plus launched in September, the iPhone X was delayed until November 3, reportedly due to TrueDepth sensor-related manufacturing challenges. Back in June, oft-reliable Apple analyst Ming-Chi Kuo said all three 2018 iPhones will be both announced and available to order this September, but Morgan Stanley analyst Katy Huberty recently cautioned that the

Foxconn Begins Seasonal Hiring Spree Ahead of 2018 iPhones

Apple supplier Foxconn is gearing up to hire more workers for its plants in Zhengzhou, China by offering bonuses to workers who help assemble Apple's 2018 iPhones. According to a new report by the Economic Daily News, the supplier is offering one-off bonuses of up to CNY 2,000 (US $295) to workers who renew their contracts at this time (via DigiTimes), and the hiring campaign is expected to last through November 2018. Suppliers typically begin their hiring sprees in the summer months in preparation for the annual fall iPhone launches, with Foxconn and Pegatron initiating hiring campaigns as early as May in 2016 and June in 2014. Renders of the three iPhones expected to launch this fall The report also points back to the "weaker-than-expected" profits that Foxconn received in the fourth quarter of 2017 following the November launch of the iPhone X, believed to be due to the high pre-production costs of the smartphone. In an effort to prevent this from happening again in 2018, the supplier is applying "stricter cost management" to its iPhone production process. Foxconn is expected to assemble the majority of Apple's three iPhone models coming out later this year, including all of the second-generation iPhone X, 90 percent of the "iPhone X Plus," and 75 percent of the lower-priced 6.1-inch iPhone. This news came in a report by the Taipei Times last month, which claimed that the rest of the 2018 iPhone orders will be fulfilled by Taiwanese manufacturer Pegatron. News surrounding the ramp-up of iPhone production usually begins around this time of year, with the

Foxconn Expected to Assemble Bulk of 2018 iPhones

Taiwanese manufacturer Foxconn will assemble the majority of Apple's widely rumored trio of new iPhones expected to launch in 2018, according to the Taipei Times, citing research from Fubon Securities. Foxconn, formally known as Hon Hai, will reportedly assemble all of the second-generation iPhone X, 90 percent of the so-called iPhone X Plus, and 75 percent of an all-new, lower-priced 6.1-inch iPhone. Taiwanese manufacturer Pegatron is said to fulfill the remaining orders:Hon Hai has been selected to assemble the bulk of the new iPhones, including all of the premium 5.8-inch OLED model and 90 percent of the 6.5-inch OLED phones, as well as 75 percent of the 6.1-inch LCD model, with the remainder given to Pegatron, the report said.Wistron, another Taiwanese manufacturer, will not assemble any of the new 2018 iPhones, according to the report. Fubon Securities predicts that the 6.1-inch iPhone will be priced around $799 in the United States, and use nearly all of the same materials as the iPhone 8 Plus, at an estimated cost of $275 to Apple. Last month, respected Apple analyst Ming-Chi Kuo said all three new iPhones will be both announced and made available to order this September. In a previous research note, he indicated that Apple has resolved the manufacturing challenges that resulted in the iPhone X's delayed launch and supply

Foxconn's Wisconsin Plant Pivoting From Large to Small-Medium Displays in Cost-Cutting Measure

Apple supplier Foxconn Technology Group is making a shift in its expansion plans to Wisconsin in the United States, where it will now produce small to medium-size displays for Apple and other customers. This is a change from its original plan of having the Wisconsin plant produce large television displays, and the move to smaller displays is said to help lower initial costs at the factory (via Nikkei). In total, Foxconn's Wisconsin plant will make displays for car infotainment systems, personal computers, tablets, smartphones, smaller televisions, and other "niche products." If the supplier kept on track with building large TV displays, the output would have required a "more complete" local supply chain lacking in the state, and a greater initial monetary investment for production equipment. "Previously, Foxconn planned to build a 10.5th-generation display manufacturing factory, which is more suitable for large-sized displays," supply chain sources told Nikkei. "But later they figured out that it might be more feasible and efficient to build a sixth-generation display plant or an 8.5th-generation factory from which they could move some equipment from Asia." The incomplete local supply chain is believed to have been one of the bigger obstacles to Foxconn's large panel plans in Wisconsin. Sources speaking to Nikkei said, "It would require other companies like Corning to also set up a glass substrate facility nearby, as it's almost impossible to ship fragile, huge size glass materials from a distant place." Foxconn has been open to building a facility in the