Foxconn’s Shenzhen factory is offering wages of 19 to 20 yuan (US$2.75 to US$2.75) an hour, according to three recruitment agencies. Last year, Foxconn paid 22 to 26 yuan (US$3.35 to US$3.75).
The pay cuts come as Apple moves more production outside China to diversify its supply chain. In 2022, the company suffered severe disruptions in Zhengzhou — dubbed “iPhone City” — due to Covid-19.
After workers protested over Covid-19 restrictions and a massive wave of resignations, Foxconn decided to increase wages and bonuses to attract people back.
The Zhengzhou factory's latest recruitment ad says new employees will receive a 2,500 yuan (US$360) subsidy, down from 6,500 yuan (US$900) in April 2022. According to China Business News , there are currently only about 70,000 workers working here, less than half of its designed capacity.
Foxconn, Apple’s largest contractor, is reportedly preparing to invest around $700 million to build a new factory in India. Foxconn has won a contract to manufacture AirPods in the South Asian country. While 85% of iPhones are assembled in China, the number of “made in India” iPhones has increased by 65% over the past year, according to a report by Counterpoint .
DigiTimes predicts that India could assemble 50% of iPhones by 2027 from less than 5% this year. That would put India on par with China.
In Vietnam, Foxconn signed a contract to lease a 45-hectare plot of land from Saigon-Bac Giang Industrial Park Joint Stock Company for $62.5 million. The land lease is to meet “operational and capacity expansion needs.” In August 2022, Foxconn signed a $300 million investment agreement to build a new factory in Bac Giang, where the company currently produces iPads and AirPods. It is unclear what Foxconn will assemble at the new factory.
(According to SCMP)
Foxconn plans to reduce dependence on China
Foxconn Group, one of Apple's largest suppliers, said it will reduce its dependence on China and diversify its production locations to boost supply chain recovery.
Foxconn leases 45 hectares of land in Bac Giang
Apple's largest contractor – Foxconn – said it has just leased a new plot of land from Saigon – Bac Giang Industrial Park Joint Stock Company in Vietnam.
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