Foxconn's History and International Operations Overview

Author

Reads 2K

Monochrome view of a spacious factory interior with long work tables and machinery.
Credit: pexels.com, Monochrome view of a spacious factory interior with long work tables and machinery.

Foxconn's history began in 1974 when it was founded by Terry Gou as a small electronics manufacturer in Taiwan.

The company's early success was largely due to its focus on producing high-quality motherboards and other computer components.

Foxconn's international operations started to take off in the late 1990s, with the company establishing manufacturing facilities in China.

Today, Foxconn is one of the largest electronics manufacturers in the world, with a presence in over 10 countries.

A different take: Bharat Electronics

History

Foxconn was founded in 1974 by Taiwanese businessman Terry Gou as Hon Hai Plastics Corporation.

Terry Gou established the company in Taipei, Taiwan, marking the beginning of its journey.

Foxconn's first manufacturing plant in mainland China opened in Longhua Town, Shenzhen, in 1988.

This expansion into China was a significant milestone for the company, paving the way for future growth.

In 2001, Intel selected Foxconn to manufacture its Intel-branded motherboards, giving the company a major boost.

By 2007, Foxconn had further expanded with plans to build a new $500 million plant in Huizhou, Southern China.

You might enjoy: Intel

Credit: youtube.com, Foxconn - Manufacturing Giant Behind Apple, Microsoft, Good, Dell and More

Foxconn made up approximately 40% of worldwide consumer electronics production by 2012.

That year, Terry Gou also named Tien Chong (Terry) Cheng chief executive of its subsidiary FIH Mobile Limited.

Foxconn acquired a 10-percent stake in Sharp Corporation for $806 million in March 2012, but the deal ultimately fell through.

However, Foxconn continued to grow, announcing plans to invest $494 million in the construction of five new factories in Itu, Brazil, in September 2012.

These factories created 10,000 jobs, further solidifying Foxconn's presence in the global market.

In 2014, Foxconn purchased Asia Pacific Telecom and won some spectrum licenses at an auction, allowing it to operate 4G telecommunications equipment in Taiwan.

Terry Gou's leadership played a significant role in the company's growth and expansion.

In 2016, Foxconn acquired over 66 percent of Sharp's voting stock, but the deal was halted due to undisclosed liabilities.

However, the deal was finalized in March 2016, albeit at a lower price.

Foxconn appointed Liu, Young-Way as its new chairman in July 2019.

During the COVID-19 pandemic, Foxconn started producing medical masks and clothing at its Shenzhen factory in China.

In June 2021, Foxconn and TSMC reached an agreement to purchase 10 million BioNTech COVID-19 vaccines for Taiwan.

Suggestion: Buy Foxconn Stock

International Operations

Credit: youtube.com, Foxconn Plans to Replace Workers With Machines: Roubini

Foxconn has a significant global presence with 137 campuses and offices in 24 countries and areas around the world.

The majority of these factories are located in East Asia, which gives you an idea of the company's focus on this region.

Foxconn's international operations also extend to other parts of the world, including Brazil, India, Europe, and Mexico.

Recommended read: Foxconn Subsidiaries

China

Foxconn has a significant presence in China, with 12 factories in nine Chinese cities as of 2012. This is more than in any other country.

The largest Foxconn factory is located in Longhua Subdistrict, Shenzhen, where hundreds of thousands of workers are employed. The exact number of workers varies, but it's reported to be between 230,000 and 450,000.

The Longhua Science & Technology Park, also known as "Foxconn City", covers an area of about 3 km (1.2 sq mi) and includes 15 factories, worker dormitories, and various amenities like swimming pools and a hospital. A quarter of the employees live in the dormitories within the complex.

Another notable Foxconn factory is located at Zhengzhou Technology Park in Zhengzhou, Henan province, where a reported 200,000 workers were employed as of November 2022. This factory produces a significant portion of Apple's iPhone line and is sometimes referred to as "iPhone City."

Japan

Credit: youtube.com, How to get Japanese companies to actually change | International business adviser explains

Japan is home to a significant manufacturing operation. Foxconn and Sharp Corporation jointly operate two manufacturing plants in Sakai, Osaka, specializing in large-screen televisions.

These plants were considered for sale by Sharp in 2012 as part of their corporate restructuring and downsizing efforts. The company was reportedly receptive to the plan.

The acquisition of the plants was completed in August 2016 with a $3.8 billion deal.

Taiwanese Engineers Deployed

Taiwanese engineers have been deployed by the company to help mitigate the impact of the withdrawal.

These engineers have been instrumental in converting Chinese-language machinery to English-operated systems.

This move is a crucial step in ensuring the smooth continuation of operations, despite the challenges posed by the withdrawal.

The company's efforts to deploy Taiwanese engineers have been successful in reducing the impact of the withdrawal, but it's still unclear how this will affect the assembly line efficiency.

The mass training of local workers is critical for Apple's goal of producing 60 million iPhones in India in 2025, up from 35-40 million in 2024-25.

Qwen Pulls Engineers Out of Tamil Nadu

A machine with wires and electronics on it
Credit: pexels.com, A machine with wires and electronics on it

Foxconn quietly pulled engineers out of Tamil Nadu, which is a major blow to Apple's plans to expand its iPhone production in India.

The Yuzhan plant, which was only just starting to run a few months back, is now losing skilled workers instead of ramping up production.

Foxconn's move is part of a larger trend, as the company was already pulling Chinese engineers from iPhone assembly lines in India last month.

This recall is likely tied to China's efforts to maintain its manufacturing power, with Beijing officials verbally telling regulators to block tech and equipment exports to India and Southeast Asia earlier this year.

Foxconn's Chinese staff had started leaving the Yuzhan plant, according to The Economic Times, which now seems completely accurate.

Without those engineers, Apple's Indian partners, including Tata Group, the only domestic iPhone assembler, will struggle to keep up with production demands.

Apple made a deliberate call to exclude Chinese suppliers from its India move, but this choice is being tested now that the engineers have left.

Expand your knowledge: Berdychiv Machine-building Plant

Controversies

Credit: youtube.com, Foxconn Apologizes After Workers Revolt | Foxconn Protest | China | English News | News18 LIVE

Foxconn has faced numerous controversies related to employee treatment and working conditions. The company employed over a million employees, making it the largest private employer in China as of 2011.

Foxconn has been criticized for its poor and unsafe working conditions, leading to reports of excessive work hours, toxic management, and unlivable wages. This has resulted in employee protests and even attempts at mass suicide.

Foxconn workers have reported working more than 100 hours of overtime per month, and living in cramped dormitories with as many as eight workers per room. Some employees have also accused the company of racial and gender discrimination.

In response to the criticism, Foxconn set up safety nets around dorm buildings and promised to improve working conditions. However, the safety measures sometimes made employees feel worse, and the company was accused of giving protection against liability from employees' suicides by having them sign a letter stating they wouldn't kill themselves.

Worth a look: Per Aarsleff

Controversies Faced

Young female engineer using a soldering iron on a circuit board, focused on electronics work.
Credit: pexels.com, Young female engineer using a soldering iron on a circuit board, focused on electronics work.

Foxconn has faced numerous controversies over the years, particularly regarding its treatment of employees. The company has more than a million employees, making it the largest private employer in China as of 2011.

Foxconn has been criticized for its poor working conditions, including excessive work hours, toxic management practices, and unlivable wages. This has led to reports of employees protesting their working conditions, including a 2010 incident in which multiple workers took their own lives by jumping off the company's dorm building.

In China, Foxconn has been accused of discriminating against ethnic minorities and married women during the hiring process. The company has also faced allegations of racial and gender discrimination, including excluding ethnic minorities from employment consideration.

Foxconn's working conditions have been described as "unlivable", with workers housed in cramped dormitories with as many as eight workers per room. The company has responded to criticism by implementing safety measures, such as setting up safety nets around dorm buildings.

Crowd of Protesters Holding Signs and Kneeling
Credit: pexels.com, Crowd of Protesters Holding Signs and Kneeling

Foxconn has also been accused of pressuring employees to sign a letter stating that they would not kill themselves, which was seen as an attempt to shield the company from liability. This move was met with criticism, with some employees feeling that the company was prioritizing its own interests over their well-being.

Mitigation

Foxconn submitted its first Wetland Compensatory In-Lieu Fee proposal package to the DNR on April 16, 2018. This was a significant step in the mitigation process.

A total of 16.64 wetland acres were delineated on the project site for Phase 1 of the Foxconn development. This is a substantial area of wetlands that needed to be addressed.

Under Wis. Stat. §281.36 (4m), impacts to wetlands in an Electronics and Information Technology Manufacturing Zone (EITM) are exempt from state wetland permitting requirements. However, Foxconn still had to mitigate the impacts at a 2 to 1 ratio.

Foxconn chose to mitigate the wetland impacts through the department's in-lieu fee program, paying $2,037,020 to fulfill its mitigation obligation. This is a significant amount of money that went towards mitigating the impacts on the wetlands.

From above of circuit boards of modern smartphones placed in plastic box in electronics factory
Credit: pexels.com, From above of circuit boards of modern smartphones placed in plastic box in electronics factory

The department issued a letter confirming that this project is eligible for the EITM zone exemption and acknowledging receipt of the in-lieu fee funds on April 25, 2018. This was an important milestone in the mitigation process.

Foxconn submitted a second wetland compensatory ILF purchase proposal to the department on Sept. 27, 2018. This proposal was for wetlands delineated on parcels 409 and 413 on Prairie View Drive.

Foxconn paid $31,000 to fulfill this mitigation obligation for the 0.25 of wetland acreage delineated on parcels 409 and 413. This is a smaller amount compared to the first proposal, but still an important step in the mitigation process.

The department issued a letter confirming that the wetlands on parcels 409 and 413 are eligible for the EITM zone exemption on Oct. 11, 2018. This confirmed that Foxconn had taken the necessary steps to mitigate the impacts on these wetlands.

Foxconn submitted additional wetland compensatory ILF purchase proposals in the summer of 2019. These proposals were to request mitigation for additional wetlands delineated in Sections 31 and 32 of T3N R22E.

Foxconn paid $94,558 to mitigate for the 0.67 acres of wetlands delineated as part of one of the proposals. This is a significant amount of money that went towards mitigating the impacts on the wetlands.

A machine with several electronic devices on it
Credit: pexels.com, A machine with several electronic devices on it

The ACOE issued letters confirming that the delineated wetlands in the proposals are not subject to ACOE jurisdiction. This is an important factor in the mitigation process, as it ensures that Foxconn is not duplicating efforts to mitigate the impacts.

The department issued a letter confirming that these wetlands are eligible for the EITM zone exemption on Aug. 2, 2019. This confirmed that Foxconn had taken the necessary steps to mitigate the impacts on these wetlands.

Major Customers and Partnerships

Foxconn's major customers are a diverse group of companies from around the world.

Their list of major customers includes Apple, one of the world's most recognizable technology brands.

Foxconn's customers also include Amazon, a leading e-commerce company.

Their country of origin or base of operations is not specified in the list.

Major Customers

Foxconn has a long list of major customers, but one that stands out is Amazon, which has been a major customer of Foxconn's for a while now (USA).

Credit: youtube.com, WINWORTH MAJOR CLIENTS AND STRATEGIC PARTNERS

Apple is another notable customer, having worked with Foxconn on numerous projects over the years (USA).

Amazon and Apple aren't the only tech giants that Foxconn has partnered with - Google has also been a major customer (USA).

Foxconn's major customers also include IBM, which has a significant business relationship with the company (USA).

Other notable customers include Microsoft, which has partnered with Foxconn on various projects (USA).

Additional reading: Apple Global Inc Paypal

Fih Mobile

FIH Mobile is a subsidiary of Foxconn, offering services such as product development and after-sales support.

It was incorporated in the Cayman Islands in 2000.

FIH Mobile made a significant purchase in 2016, acquiring Microsoft Mobile's feature phone business for a total of US$350 million.

This sale included Microsoft Mobile Vietnam, which operates a manufacturing facility in Hanoi, Vietnam.

As part of the deal, HMD Global, a Finland-based company, acquired the rest of Microsoft Mobile's business and started developing new Nokia-branded devices in 2017.

FIH Mobile is now manufacturing new Nokia-branded devices developed by HMD.

A unique perspective: Brookfield Business Partners

Various Corporate Partnerships

Credit: youtube.com, Corporate Partnerships

Our company has formed various corporate partnerships that have significantly contributed to our growth and success.

One notable partnership is with a leading tech firm, which has enabled us to integrate their innovative software solutions into our products.

This partnership has resulted in improved efficiency and customer satisfaction for our clients.

We have also partnered with a prominent logistics company to enhance our delivery services.

Their expertise in transportation and warehousing has streamlined our supply chain operations, reducing delivery times and costs.

In addition, we have collaborated with a renowned design firm to create visually appealing and user-friendly products.

Their creative input has helped us stay ahead of the competition and meet the evolving needs of our customers.

Project and Permit Details

Foxconn's project in Wisconsin involves obtaining various permits to ensure compliance with environmental regulations. The DNR's Air Program is responsible for issuing air pollution control permits to manufacturing facilities in Wisconsin.

A public hearing was held on April 3, 2018, in Sturtevant, where Department staff held an open house and informal question and answer session prior to the hearing. Audio from the public hearing is available online, lasting 35:36 minutes.

Credit: youtube.com, Report: Wisconsin Foxconn project a 'debacle'

Foxconn submitted a construction site storm water permit application on April 2, 2018, for coverage under Storm Water Runoff General Permit No. WI-S067831-5. Coverage under the permit is limited to three years but can be renewed.

Here are some key permits and deadlines related to Foxconn's project:

  • April 2, 2018: Foxconn submitted a construction site storm water permit application.
  • April 23, 2018: The DNR issued a letter granting coverage under Construction Site Storm Water Runoff General Permit No. WI-S067831-5 to Foxconn.
  • April 3, 2018: Foxconn submitted a notice of intent for coverage under an Industrial Storm Water Discharge General Permit.

Project Site Maps

Project site maps are a crucial part of the Foxconn project, and they're actually pretty interesting. The map of the Electronics and Information Technology Manufacturing (EITM) Zone is available for more information in section 238.396 of the Wisconsin Stats.

The EITM Zone Designation is also publicly available, and it can be found in Exhibit D from the Electronics and Information Technology Manufacturing Zone Tax Credit Agreement between the Wisconsin Economic Development Corp. and SIO International Wisconsin Inc., FEWI Development Corp., and AFE Inc.

The project site areas for the first phases of the Foxconn project are proposed primarily in the eastern two-thirds of Area 1 in the provided map.

Air Permits

Credit: youtube.com, E@TB: Air Permits and Process Changes

Air permits are an essential part of the project, and compliance with state and federal air standards is required.

The DNR's Air Program is responsible for issuing air pollution control permits to manufacturing facilities in Wisconsin. They make sure that the project activities meet the necessary standards.

A public hearing was held on April 3, 2018, in Sturtevant to discuss the air permits. Department staff held an open house and informal question and answer session prior to the hearing.

You can access audio from the public hearing, which lasts 35 minutes and 36 seconds. Slides from the DNR's presentation are also available.

The DNR provides a Citizens Guide to the Air Permit Process (AM-338) to help navigate the process. Additionally, a Fact Sheet on the draft air pollution control permits for AFE/SIO International Wisconsin Inc. (Foxconn Technology Group) is available in PDF format.

Permit Status

Foxconn submitted a construction site storm water permit application on April 2, 2018, and received coverage under Construction Site Storm Water Runoff General Permit No. WI-S067831-5 on April 23, 2018.

A unique perspective: Simple Site Company

Assembling Machines in Factory
Credit: pexels.com, Assembling Machines in Factory

The permit is limited to three years and can be renewed. Foxconn developed construction site erosion control and post-construction storm water management plans to ensure compliance with regulations.

The DNR reviewed Foxconn's application to ensure compliance with regulations applicable to potential impacts to endangered/threatened species, historical/archaeological sites, and wetlands. Foxconn must obtain industrial storm water permit coverage before beginning operations at its manufacturing campus.

Foxconn submitted a notice of intent for coverage under an Industrial Storm Water Discharge General Permit on April 3, 2018. The DNR will review and act on Foxconn's application prior to the start of industrial operations.

Wastewater

Foxconn plans to discharge wastewater to the city of Racine's wastewater treatment plant. The city, as an authorized pretreatment authority, will oversee the process.

The state will provide additional oversight through audits, inspections, and reviews of reports. This is in accordance with federal and state law, which requires large municipal wastewater plants to regulate local contributing industries.

Credit: youtube.com, WASTEWATER PERMITTING BASICS -- DO I NEED A DISCHARGE PERMIT?

Racine's wastewater treatment plant is regulated by the DNR's pretreatment program through a WPDES permit. This permit protects discharges to Wisconsin waters via publicly owned treatment works (POTWs).

The Racine Water and Wastewater Utility (RWWU) received an official application for Phase 0 of the Foxconn project on August 6, 2019. This application entails the discharge of approximately 20,000 gallons per day of sanitary/domestic wastewater.

Discharges from future phases of production may require permit coverage until the Zero Liquid Discharge system is completed. Foxconn announced plans to implement this ZLD system on June 19, 2018.

The ZLD system will recycle almost all water from the facility, significantly reducing water use demand and eliminating the return of manufacturing process wastewater to Lake Michigan.

Wisconsin and US Operations

Foxconn's Wisconsin operations have been a significant focus for the company. In 2017, the State Legislature passed 2017 Wisconsin Act 58, authorizing the state to create an Electronics and Information Technology Manufacturing (EITM) Zone for Foxconn.

Credit: youtube.com, How Wisconsin's deal with Foxconn fell short of expectations

The company announced plans to build a $10 billion TV manufacturing plant in southeastern Wisconsin, which would initially employ 3,000 workers and increase to 13,000. Foxconn was set to receive subsidies ranging from $3 billion to $4.8 billion, with some estimates suggesting it would contribute $51.5 billion to Wisconsin's GDP over 15 years.

Construction of the complex began in 2018, and the plant had largely been completed by 2020. However, the facility ended up generating just 1,100 jobs as of December 2024, falling short of the initial promise of 13,000 jobs.

US

Foxconn's massive 1.9 million-square-meter plant in Mount Pleasant, Wisconsin, was initially planned to manufacture LCD screens and create 13,000 jobs, with a $10 billion investment and a $3 billion tax incentive package.

The project was scaled back, and as of December 2024, the plant had generated only 1,100 jobs, despite receiving $9 million in state tax credits.

Foxconn's Wisconsin plant was built on land declared "blighted" by the government, which used eminent domain to destroy residential properties and make way for the plant.

Explore further: Golden 1 Credit Union

An Industrial Machine in a Factory
Credit: pexels.com, An Industrial Machine in a Factory

Mount Pleasant spent over $100 million on the project, which failed to deliver on Foxconn's promises.

Foxconn announced plans to invest $450 million in an industrial complex in Houston in June 2025.

The company is also forming a strategic partnership with TECO Electric & Machinery Co. to invest in AI data centers in the United States and elsewhere.

Foxconn initially planned to build a $10 billion TV manufacturing plant in southeastern Wisconsin, which would employ 3,000 workers and increase to 13,000.

The company was set to receive subsidies ranging from $3 billion to $4.8 billion, which would be the largest subsidy ever given to a foreign firm in U.S. history.

Foxconn was exempted from filing an environmental impact statement, prompting criticism from environmentalists, who noted the plant would contribute significantly to air pollution in the region.

The company is spending $30 million on zero liquid discharge technology to address water concerns and must restore 2 acres of wetland for every 1 acre disturbed, a higher ratio than other companies.

Skilled workers managing industrial equipment in a factory setting.
Credit: pexels.com, Skilled workers managing industrial equipment in a factory setting.

Foxconn initially broke ground for the plant in June 2018, with President Trump in attendance to promote American manufacturing.

The company later reconsidered its plans to manufacture LCD screens at the Wisconsin plant, citing high labor costs in the United States.

Under a new agreement, Foxconn reduced its planned investment to $672 million with 1,454 new jobs and tax credits reduced to $8 million.

Foxconn also acquired a former GM plant in Lordstown, Ohio, for $230 million and invested $50 million in Lordstown Motors through a purchase of common stock.

iPhone 17 Production On Track

iPhone 17 production is expected to be on track due to Foxconn's proactive measures, such as sourcing engineers from Taiwan and other regions.

These measures have minimized the immediate disruption, allowing production to continue without significant delays.

Foxconn's efforts are crucial in maintaining the supply chain, especially considering Apple's plans to launch the iPhone 17 series in September.

Apple is increasingly relying on local partners like Tata Group, which has become the only Indian iPhone assembler, to offset challenges in the supply chain.

This diversification strategy aims to reduce dependence on a single region and minimize the impact of geopolitical tensions.

A unique perspective: FedEx Supply Chain

Other Locations and Events

Credit: youtube.com, What Foxconn - Apple's Largest Manufacturer - Is Up To In Wisconsin

Foxconn has a significant presence in China, with plans to expand to various locations including Wuhan, Kunshan, Tianjin, Beijing, Huizhou, and Guangzhou in Guangdong province.

The company has also invested heavily in research and development, agreeing to a $5.7 billion deal with the Nanjing government in September 2017 to develop intelligent terminal devices and LCD technology.

In response to a Covid outbreak at Zhengzhou Technology Park, Foxconn imposed restrictions on its iPhone assembly plant, including closing dine-in meal facilities, which led to a series of events including workers jumping the fence to escape and clashes with law enforcement over harsh COVID restrictions and promised salary packages.

India

India has been a key location for Foxconn's expansion, with the company setting up a new plant called Competition Team Technology (India) Private Limited in Irungattukottai, near Chennai, in 2015.

This plant was later moved to Oragadam, Kanchipuram, in 2019. Foxconn has also discussed its intent to work with the Adani Group for expansion in the country.

Close-up of intricate circuit boards in a Vietnamese factory, capturing modern electronics production.
Credit: pexels.com, Close-up of intricate circuit boards in a Vietnamese factory, capturing modern electronics production.

In 2015, Foxconn announced plans to set up twelve factories in India and create around one million jobs. The company has since made significant progress, with Chairman Terry Gou reporting in 2019 that they are ready to mass-produce newer iPhones in India, specifically in the southern city of Chennai.

Foxconn has also invested in various Indian companies, including Snapdeal in 2015 and Gionee in 2016. In 2017, the company started producing iPhones in Sriperumbudur, near Chennai.

As of September 2023, Foxconn has three manufacturing plants under construction in southern India, which are projected to be completed and begin operations by the end of 2024. These plants will together employ around 400,000 people in the first five years of their operations.

In 2023, Foxconn set a target to employ 2 million jobs and meet India's target of exporting mobile phones worth $10 billion by 2030.

Broaden your view: Bevier and Southern Railroad

Malaysia

In Malaysia, Foxconn had at least seven factories in the Johor state as of 2011. These factories were located at Kulai, where the company was developing an industrial park.

The industrial park included four factories that comprised fully automated assembly lines.

Intriguing read: Park 'N Fly

Frequently Asked Questions

Is Apple still using Foxconn?

Yes, Apple still uses Foxconn as one of its major original design manufacturer (ODM) partners, but the company has expanded its supply chain to include components from 43 countries worldwide. Foxconn's factories are located in multiple countries, including China, Brazil, and India.

Vanessa Schmidt

Lead Writer

Vanessa Schmidt is a seasoned writer with a passion for crafting informative and engaging content. With a keen eye for detail and a knack for research, she has established herself as a trusted voice in the world of personal finance. Her expertise has led to the creation of articles on a wide range of topics, including Wells Fargo credit card information, where she provides readers with valuable insights and practical advice.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.