Taipei, Thursday, May 26, 2016 22:39 (GMT+8)
thunderstorms
Taipei
28°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
  • Digitimes Research: Top-5 Wintel notebook vendors see combined shipments down in April

    Before Going to Press | 25min ago

  • Quanta Computer, Wiwynn to showcase OCP-compatible 19-inch rack servers at Computex Taipei 2016

    Before Going to Press | 26min ago

  • Digitimes Research: HMDs trending to replace Cave for professional VR

    Before Going to Press | 27min ago

  • Global, Taiwan 2016 shipments of notebooks, tablets to fall on year, says MIC

    Before Going to Press | 30min ago

  • Taiwan market: Oppo to launch R9 Plus smartphone

    Before Going to Press | 31min ago

  • Establishment of holding companies is new model of transforming Taiwan high-tech industries, says Acer founder

    Before Going to Press | 32min ago

  • OLED unlikely to replace LCD, says GLT chairman

    Before Going to Press | 34min ago

  • Xiaomi Technology offers drones

    Before Going to Press | 37min ago

  • ASE, SPIL to jointly establish holding company

    Before Going to Press | 39min ago

  • Global Unichip to deal out 2015 dividend of NT$3

    Before Going to Press | 39min ago

  • Holtek 2016 revenues to rise 6%, says report

    Before Going to Press | 40min ago

Pause
 | 
View more
Gigabyte
Trends and forecasts for the China FPD industry, 2014-2017
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.