Taipei, Thursday, November 27, 2014 12:14 (GMT+8)
mostly cloudy
Taipei
23°C
Commentary: Could automation solve labor issues for Foxconn?
Ninelu Tu, Taipei; Joseph Tsai, DIGITIMES [Tuesday 10 January 2012]

China has always given the impression of having a large and cheap labor force. But as the country's population structure and social values are starting to change, Foxconn Electronics (Hon Hai Precision Industry), which is known for its strict management, is also seeking ways to cope with the changes. Foxconn has been aggressive in introducting automation production to reduce its reliance on manual labor, but it remains to be seen whether the move will work.

Foxconn chairman Terry Guo has pointed out many times that China's young people today have completely different values and attitude than the older generations. Therefore, Foxconn will have to adjust its management strategy to fit into the quickly-changing society.

In addition to giving up its concept that "the company is the family" and allowing its employees to return to their own lives after work, Guo is also allowing automation to take over some of the monotonous work from employees.

Although Guo plans to install one million robots within the next three years, some market observers are still skeptical of the move. They have noted that many of Foxconn's assembly lines will still need a huge amount of laborers.

Moreover, Foxconn currently employs over one million workers in China. Unless the company actually sees labor shortages, the Chinese government would not be happy to see one of the biggest employers of the country reduce its human work force in favor of robots.

Therefore, some observers believe that Foxconn must provide better training for its employees and try to increase the value of manual labor.

Realtime news
  • Patent wars may become competitive strategy in China smartphone market

    Mobile + telecom | 10min ago

  • Inotera orders equipment from Applied Materials

    Bits + chips - Stockwatch | 14min ago

  • TPV sees LCD TV and monitor shipments increase 7.5% in 3Q14

    Displays | Nov 26, 22:24

  • China market: Smartphone vendors to streamline product lines

    Mobile + telecom | Nov 26, 22:14

  • Oppo, Gionee increase AMOLED handset panel orders to Samsung

    Displays | Nov 26, 20:45

  • China market: Over 5.4 million consumer tablets sold in 3Q14, says Analysys

    IT + CE | Nov 26, 20:26

  • Epistar sees decreasing capacity utilization

    LED | Nov 26, 20:05

  • Huawei denies filing lawsuit against competitors, says report

    Before Going to Press | Nov 26, 22:18

  • Samsung Electro-Mechanics to expand businesses in China in 2015, says paper

    Before Going to Press | Nov 26, 22:18

  • Innolux clarifies Chi Mei Lighting debt issues, looking to secure loan from Taiwan banks

    Before Going to Press | Nov 26, 22:01

  • Most motherboard players turn to defend gross margins in 2015

    Before Going to Press | Nov 26, 20:27

  • New Microsoft Surface tablet to be available in 1Q15

    Before Going to Press | Nov 26, 20:06

  • Taiwan market: 4G user base tops 2.1 million at end of October, says NCC

    Before Going to Press | Nov 26, 19:33

  • China market: Over 5.4 million consumer tablets sold in 3Q14, says Analysys

    Before Going to Press | Nov 26, 19:17

  • Co-Tech looking to diversify products

    Before Going to Press | Nov 26, 19:15

  • Micron, Winbond team up for serial NOR flash

    Before Going to Press | Nov 26, 19:15

  • iPhone chip orders slow down, say IC designers

    Before Going to Press | Nov 26, 19:14

Pause
 | 
View more
MSI X99S GAMING 9 AC
The transition to 4k TV - UHD TV market forecast, 2014-2017
TD-LTE market developments and forecast, 2014-2016
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.