"Foxconn Moving iPhone Factory to India, China Undergoing Restructuring"

Reduction of Temporary Hiring and Regular Employee Layoffs

Taiwanese Foxconn, Apple's largest partner pushing for factory relocation to India, has begun restructuring its factories in China, Taiwan's Central News Agency reported on the 9th.

The Central News Agency cited Chinese video platforms and social media such as Kuaishou and Douyin, reporting that recently Foxconn's Shenzhen factory and its partners have significantly reduced the hiring of temporary workers, started cutting existing full-time employees, and movements to dismantle production lines have also been observed. It is reported that Foxconn is advising existing full-time employees to take leave and has notified manpower agencies not to hire additional temporary workers. The Shenzhen factory, along with the Zhengzhou factory responsible for 80% of global iPhone production, is one of Foxconn's iPhone production bases.

On social media platforms like Weibo, posts have appeared stating, "Since the Lunar New Year, Foxconn's Shenzhen factory has set the lowest hourly wage in recent years at 18 yuan for recruiting temporary workers," adding, "No accommodation is provided, work is only 8 hours a day, 5 days a week, with no overtime, so the take-home pay is low." Additionally, posts spreading rumors say, "These measures are widely believed to be a prelude to Foxconn relocating production lines to India." Short video platforms have also released footage showing production equipment being loaded onto trucks leaving Foxconn's factory and many Indians, presumed to be visiting for tours or inspections, entering and exiting the Foxconn factory.

Regarding this, a Foxconn official denied the reports, stating, "The Shenzhen factory is operating normally," according to local media such as Caixin.

Apple demanded Foxconn to relocate production lines to India and Vietnam after workers at Foxconn's largest iPhone production base in Zhengzhou, China, experienced supply disruptions last October due to a surge in COVID-19 cases, government lockdown policies, and protests over working conditions.

Foxconn Chairman Liu Yangwei visited India on the 27th of last month, meeting with Indian Prime Minister Narendra Modi to discuss investment cooperation plans. Bloomberg reported on the 3rd that Foxconn plans to invest $700 million (approximately 910 billion KRW) to build an iPhone parts factory in India. Foxconn's investment in India is one of the largest single investments by the company, with Bloomberg evaluating this as "showing that China is at risk of losing its status as Foxconn's largest production base."

Bloomberg added, "Foxconn will relocate its production base outside China much faster than expected," while noting, "Since investment and project details have not yet been finalized, plans may change." The new factory is scheduled to be built on a 300-acre (approximately 1.21 million square meters) site near Bengaluru Airport, the capital of Karnataka state in southern India. Sources said it could be used as a production base for Apple iPhone and headphone product lines, as well as electric vehicle parts.