Lockdown-hit China Faces Labor Shortage: "Foxconn Offers 2 Million Won Bonus"

Reflecting Hopes for New iPhone 14 Success... iPhone 14 Sales and Exports Expected to Increase
Estimated 700 Million Potential Smartphone Replacers in China

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Foxconn (Hon Hai Precision Industry), the largest iPhone manufacturer in China, has offered a special recruitment bonus (joining celebration money) of up to 10,000 yuan (approximately 1.96 million KRW) per person at its Zhengzhou factory. This incentive appears to have been introduced due to a shortage of production workers ahead of the launch of Apple's new iPhone 14 in September. This is the first time Foxconn has offered a 10,000 yuan bonus.

Photo by Global Times capture

According to Chinese media such as Dongfang Caifu Network on the 18th, Foxconn's Digital Products Business Group (iDPBG) has been paying a special recruitment bonus of up to 10,000 yuan to employees joining the production line at the Zhengzhou factory since the 17th, depending on their experience.

The Zhengzhou factory has been running a re-employment recruitment campaign targeting former employees since the end of June, but it is reportedly facing difficulties in hiring due to movement restrictions caused by the resurgence of COVID-19. As a result, the special recruitment bonus has nearly doubled compared to the previously offered 5,400 yuan.

Chinese media reported that the Zhengzhou factory, with 350,000 employees, is the largest iPhone manufacturer in China and can produce 500,000 iPhones daily across 90 production lines.

Above all, the increased recruitment bonus seems to reflect the positive response within China to the iPhone 14, scheduled for release in September.

Chinese IT specialist media ZOL.com estimated the potential demand for the iPhone to be between 90 million and 100 million units. Xiangcai Securities in China analyzed that with an estimated 700 million potential smartphone upgraders in China, the demand for the iPhone 14 is expected to be significant. Futuo Securities forecasted that as supply chain issues ease, there will be changes in the fundamentals of IT and telecommunications-related companies in the second half of the year.

Chinese media speculated, based on iPhone 14 protective cases, that the new models will be released in 6.1-inch and 6.7-inch sizes, with four models expected to be sold: the 6.1-inch base model, Plus (6.7-inch), Pro (6.1-inch), and Pro Plus (6.7-inch).

Besides the Zhengzhou factory, the Shenzhen factory in Guangdong Province is also recruiting with a special recruitment bonus of 5,280 yuan, according to Chinese media.

The hiring difficulties at Foxconn's Chinese factories are an annual recurring event. Foxconn's Apple iPhone production work is known to be simple labor that does not require technical skills, making long-term employment challenging. Most workers prefer temporary positions over permanent ones. Within China, there is an expectation that Apple's iPhone 14, an American company's product, will have a positive impact not only on domestic demand but also on exports.

This content was produced with the assistance of AI translation services.