Chapter 6.3, Problem 1.2RQ

FOXCONN SHIFTS ITS FOCUS TO AUTOMATION

Foxconn operates a network of factories across the Chinese mainland, employing 1.2 million people, that makes products for tech companies that include Apple Hewlett Packard, and Dell. The electronics manufacturing giant has been on a steady course for a while to replace manpower with robotic systems.

‘Foxconn (has) vowed to install up to 1 million robots in its factories over the next three years, which analysts suggested was in part to address long-time scandals such as high suicide rates among employees and exploitation of workers.’

Foreign manufacturers in China are also viewing upgrades as vital to their operations in the country. In fact, numerous multinational companies have recognized the long-term benefits of replacing human labor with robots.

2. Many companies outsourced their manufacturing activities to Foxconn due to its low labor costs. Does Foxconn’s shift to automation make it likely that some of those companies will reconsider outsourcing in favor of shifting to automation? What are some reasons for staying with Foxconn and what are some reasons that favor shifting to their own automated processes?

Source: Based on ‘Foxconn hats recruitment as focus shifts to automation,’ He Wei in Shanghai, China Daily, February 2, 2013, p.9.