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Foxconn halts some production lines for Huawei phones, according to reports

Posted by on Jun 1, 2019 in android, Apple, Companies, Donald Trump, Foxconn, Google, Huawei, mobile phones, operating system, president, shenzhen, smart phone, smartphone, Smartphones, TC, telecommunications, United States, Xiaomi | 0 comments

Huawei, the Chinese technology giant whose devices are at the center of a far-reaching trade dispute between the U.S. and Chinese governments, is reducing orders for new phones, according to a report in The South China Morning Post.

According to unnamed sources, the Taiwanese technology manufacturer Foxconn has halted production lines for several Huawei phones after the Shenzhen-based company reduced orders. Foxconn also makes devices for most of the major smart phone vendors including Apple and Xiaomi (in addition to Huawei).

In the aftermath of President Donald Trump’s declaration of a “national emergency” to protect U.S. networks from foreign technologies, Huawei and several of its affiliates were barred from acquiring technologies from U.S. companies.

The blacklist has impacted multiple lines of Huawei’s business including it handset manufacturing capabilities given the company’s reliance on Google’s Android operating system for its smartphones.

In May, Google reportedly suspended business with Huawei, according to a Reuters report. Last year, Huawei shipped over 200 million handsets and the company had a stated goal to become the world’s largest vendor of smartphones by 2020.

These reports from The South China Morning Post are the clearest indication that the ramifications of the U.S. blacklisting are beginning to be felt across Huawei’s phone business outside of China.

Huawei was already under fire for security concerns, and will be forced to contend with more if it can no longer provide Android updates to global customers.

Contingency planning is already underway at Huawei. The company has built its own Android -based operating system, and can use the stripped down, open source version of Android that ships without Google Mobile Services. For now, its customers also still have access to Google’s app store. But if the company is forced to make developers sell their apps on a siloed Huawei-only store, it could face problems from users outside of China.

Huawei and the Chinese government are also retaliating against the U.S. efforts. The company has filed a legal motion to challenge the U.S. ban on its equipment, calling it “unconstitutional.”  And Huawei has sent home its American employees deployed at R&D functions at its Shenzhen headquarters.

It has also asked its Chinese employees to limit conversations with overseas visitors, and cease any technical meetings with their U.S. contacts.

Still, any reduction in orders would seem to indicate that the U.S. efforts to stymie Huawei’s expansion (at least in its smartphone business) are having an impact.

A spokesperson for Huawei U.S. did not respond to a request for comment.


Source: The Tech Crunch

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Terry Gou will resign as Foxconn’s chairman to run for president of Taiwan

Posted by on Apr 17, 2019 in Asia, China, Foxconn, Government, Politics, taiwan, TC, Terry Gou | 0 comments

Foxconn chairman Terry Gou officially announced on Wednesday that he will run for president of Taiwan. Gou will step down from leading the company (also known as Hon Hai Precision Industry Co. Ltd.), one of Apple’s most important manufacturers, in order to campaign for the nomination of the Kuomintang, the pro-China opposition party.

Taiwan’s economy and complicated relationship with China will be at the heart of the 2020 presidential campaign, as incumbent Tsai Ing-wen defends her position against not only candidates from the Kuomintang and other parties, but also a challenger from her own party, the Democratic Progressive Party, William Lai, who entered the race last month.

Gou earlier said that his presidential aspirations had been blessed by Mazu, the sea goddess who is one of the most important Taoist and Buddhist deities. Gou founded Foxconn in 1974 and has held no political office, but his campaign will be helped by his business reputation and reported $7 billion net worth.

Gou’s lack of government experience may be balanced in the mind of voters by his relationships with Donald Trump and China’s government. Foxconn has committed to building a $10 billion factory in Wisconsin. Even though Taiwan’s sovereignty is not recognized by China, which views the country as a rogue province, Foxconn has more plants there than in any other country.


Source: The Tech Crunch

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Foxconn says Wisconsin factory plans are back on after talk with Trump

Posted by on Feb 1, 2019 in Foxconn, Hardware, manufacturing, TC, trump, Wisconsin | 0 comments

It seems Foxconn’s plans for a $10 billion Wisconsin plant are back on. After a couple of years of back and forths, the manufacturing giant says it’s recommitting to plans for a plant in the upper Midwest. A statement today cited a phone call between chairman/founder Terry Gou and Donald Trump.

“After productive discussions between the White House and the company, and after a personal conversation between President Donald J. Trump and Chairman Terry Gou, Foxconn is moving forward with our planned construction of a Gen 6 fab facility, which will be at the heart of the Wisconsin Valley Science and Technology Park,” the statement reads. “This campus will serve both as an advanced manufacturing facility as well as a hub of high technology innovation for the region.”

Earlier this week, the company noted that it was reconsidering its plans for the TV plant, noting that it was more interested in hiring researchers and engineers than the manufacturing jobs that were initially noted. “In terms of TV, we have no place in the U.S.,” Gou said at the time. “We can’t compete.”

An influx of manufacturing jobs would be a win for Trump at a vital time, as support has eroded over the country’s longest government shutdown and tariffs have made for icy relations with China. As CNBC notes, state government has sweetened the deal considerably with $4 billion in tax breaks.

Initial plans for the 20 million-square-foot campus, unveiled at a White House event in 2017, noted that it would bring 13,000 jobs — a nice bump as the U.S. has struggled to maintain manufacturing facilities.

Details, however, are still pretty thin.

“Our decision is also based on a recent comprehensive and systematic evaluation to help determine the best fit for our Wisconsin project among TFT technologies,” the statement continues. “We have undertaken the evaluation while simultaneously seeking to broaden our investment across Wisconsin far beyond our original plans to ensure the company, our workforce, the local community, and the state of Wisconsin will be positioned for long-term success.”


Source: The Tech Crunch

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Apple could end up manufacturing iPhones in another country due to tariffs

Posted by on Dec 12, 2018 in Apple, Foxconn, Gadgets, iPhone | 0 comments

According to a new report from Bloomberg, Apple is thinking about multiple scenarios when it comes to tariffs and iPhone production. Right now, iPhones are not affected directly by the trade war between China and the U.S.

But if U.S. President Donald Trump decides to raise tariffs on smartphones, it could be a big deal for the company. Apple manufactures most of its iPhones in China right now and works with Foxconn for the final assembly of those devices.

In some countries with high tariffs, Apple has worked with suppliers outside of China. For instance, Taiwanese manufacturer Wistron has built an assembly facility in Bengaluru, India. At first, the plan was to manufacture iPhone SE devices in India.

Similarly, Foxconn opened a facility in Brazil back in 2011. But results have been disappointing as devices were still much more expensive in Brazil than in the U.S.

But the U.S. is such a key market for Apple that tariffs on U.S. imports could have significant consequences. According to Bloomberg, Apple would keep the same supply chain even if the U.S. decides on a 10 percent tariff on smartphones. If might move production away from China with a 25 percent tariff.

It’s unclear if all production would move to another country or just production for the U.S. But nothing is changing for now. It’s just executives playing a little game of “what if.”


Source: The Tech Crunch

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How Silicon Valley should celebrate Labor Day

Posted by on Sep 1, 2018 in AFL-CIO, Amazon, Diversity, equal pay, Facebook, Foxconn, Hiring, inclusion, Labor Day, labor unions, Personnel, Startups, Talent | 0 comments

Ask any 25-year old engineer what Labor Day means to him or her, and you might get an answer like: it’s the surprise three-day weekend after a summer of vacationing. Or it’s the day everyone barbecues at Dolores Park. Or it’s the annual Tahoe trip where everyone gets to relive college.

Or simply, it’s the day we get off because we all work so hard.

And while founders and employees in startup land certainly work hard, wearing their 80-hour workweeks as a badge of honor, closing deals on conference calls in an air-conditioned WeWork is a far cry from the backbreaking working conditions of the 1880s, the era when Labor Day was born.

For everyone here in Silicon Valley, we should not be celebrating this holiday triumphantly over beers and hot dogs, complacent in the belief that our gravest labor issues are behind us, but instead use this holiday as a moment to reflect on how much further we have to go in making our workplaces and companies more equitable, diverse, inclusive and ethically responsible.

Bloody Beginnings

On September 5th, 1882, 10,000 workers gathered at a “monster labor festival” to protest the 12-hours per day, seven days a week harsh working conditions they faced in order to cobble together a survivable wage. Even children as “young as 5 or 6 toiled in mills, factories and mines across the country.”

This all erupted in a climax in 1894 when the American Railway Union went on a nationwide strike, crippling the nation’s transportation infrastructure, which included trains that delivered postal mail. President Grover Cleveland declared this a federal crime and sent in federal troops to break up the strike, which resulted in one of the bloodiest encounters in labor history, leaving 30 dead and countless injured.

Labor Day was declared a national holiday a few month later in an effort to mend wounds and make peace with a reeling and restless workforce (it also conveniently coincided with President Cleveland’s reelection bid).

The Battle is Not Yet Won

Today in Silicon Valley, this battle for fair working conditions and a living wage seems distant from our reality of nap rooms and lucrative stock grants.  By all accounts, we have made tremendous strides on a number of critical labor issues. While working long hours is still a cause for concern, most of us can admit that we often voluntarily choose to work more than we have to. Our workplace environments are not perfect (i.e. our standing desks may not be perfectly ergonomic), but they are far from life-threatening or hazardous to our health. And while equal wages are still a concern, earning a living wage is not, particularly if the worst case scenario after “failing” at a startup means joining a tech titan and clocking in as a middle manager with a six-figure salary.

Even though the workplace challenges of today are not as grave as life or death, the fight is not yet over. Our workplaces are far from perfect, and the power dynamic between companies and employees is far from equal.

In tech, we face a myriad of issues that need grassroots, employee-driven movements to effect change. Each of the following issues has complexities and nuances that deserve an article of its own, but I’ve tried to summarize them briefly: 

  1. Equal pay for equal work – while gender wage gaps are better in tech than other industries (4% average in tech vs. 20% average across other industries), the discrepancy in wages for women in technical roles is twice the average for other roles in tech.
  2. Diversity – research shows that diverse teams perform better, yet 76% of technical jobs are still held by men, and only 5% of tech workers are Black or Latino. The more alarming statistic in a recent Atlassian survey is that more than 40% of respondents felt that their company’s diversity programs needed no further improvement.
  3. Inclusion – an inclusive workplace should be a basic fundamental right, but harassment and discrimination still exist. A survey by Women Who Tech found that 53 percent of women working in tech companies reported experiencing harassment (most frequently in the form of sexism, offensive slurs, and sexual harassment) compared to 16 percent of men.
  4. Outsourced / 1099 employees – while corporate employees at companies like Amazon are enjoying the benefits of a ballooning stock, the reality is much bleaker for warehouse workers who are on the fringes of the corporate empire. A new book by undercover journalist James Bloodworth found that Amazon workers in a UK warehouse “use bottles instead of the actual toilet, which is located too far away.” A separate survey conducted found that 55% of these workers suffer from depression, and 80% said they would not work at Amazon again.Similarly, Foxconn is under fire once again for unfair pay practices, adding to the growing list of concerns including suicide, underage workers, and onsite accidents. The company is the largest electronics manufacturer in the world, and builds products for Amazon, Apple, and a host of other tech companies.
  5. Corporate Citizenship & Ethics – while Silicon Valley may be a bubble, the products created here are not. As we’ve seen with Facebook and the Cambridge Analytica breach, these products impact millions of lives. The general uncertainty and uneasiness around the implications of automation and AI also spark difficult conversations about job displacement for entire swaths of the global population (22.7M by 2025 in the US alone, according to Forrester).

Thus, the reversal in sentiment against Silicon Valley this past year is sending a message that should resonate loud and clear — the products we build and the industries we disrupt here in the Valley have real consequences for workers that need to be taken seriously.

Laboring toward a better future

To solve these problems, employees in Silicon Valley needs to find a way to organize. However, there are many reasons why traditional union structures may not be the answer.

The first is simply that traditional unions and tech don’t get along. Specifically, the AFL-CIO, one of the largest unions in America, has taken a hard stance against the libertarian ethos of the Valley, drawing a bright line dividing the tech elite from the working class. In a recent speech about how technology is changing work, the President of the AFL-CIO did not mince words when he said that the “events of the last few years should have made clear that the alternative to a just society is not the libertarian paradise of Silicon Valley billionaires. It is a racist and authoritarian nightmare.”

But perhaps the biggest difference between what an organized labor movement would look like in Silicon Valley and that of traditional organized labor is that it would be a fight not to advance the interest of the majority, but to protect the minority. In the 1880s, poor working conditions and substandard pay affected nearly everyone — men, women, and children. Unions were the vehicles of change for the majority.

But today, for the average male 25-year old engineer, promoting diversity and inclusion or speaking out about improper treatment of offshore employees is unlikely to affect his pay, desirability in the job market, or working conditions. He will still enjoy the privileges of being fawned over as a scarce resource in a competitive job market. But the person delivering the on-demand service he’s building won’t. His female coworker with an oppressive boss won’t. This is why it is ever more important that we wake up and not only become allies or partners, but champions of the causes that affect our less-privileged fellow coworkers, and the people that our companies and products touch.

So this Labor Day, enjoy your beer and hot dog, but take a moment to remember the individuals who fought and bled on this day to bring about a better workplace for all. And on Tuesday, be ready to challenge your coworkers on how we can continue that fight to build more diverse, inclusive, and ethically responsible companies for the future. 


Source: The Tech Crunch

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After report on “appalling” conditions, Foxconn will investigate plant that makes Amazon devices

Posted by on Jun 11, 2018 in Amazon, China, Foxconn, hon hai, TC, working conditions | 0 comments

Foxconn Technology Group says it is investigating a factory it operates that makes Amazon devices, including Kindles, after an in-depth report by advocacy group China Labor Watch criticized its “appalling working conditions,” including excessive hours and over-reliance on temporary workers.

“We are carrying out a full investigation of the areas raised by the report, and if found to be true, immediate actions will be taken to bring the operations into compliance with our Code of Conduct,” Taiwan-based Foxconn, also known as Hon Hai Precision Industry Co., Ltd., told Reuters.

New York-based China Labor Watch says its investigators were sent to the factory, which is located in south central China in Hunan Province’s Hengyang city and also makes Amazon’s Echo Dot Bluetooth speakers and tablets, from August 2017 to April 2018.

During that time, the group says it found that dispatch, or temporary, workers made up more than 40% of the workforce, far exceeding the 10% limit set by Chinese law. Dispatch workers were also treated very differently than regular workers, receiving far less safety training and no overtime wages. Instead, dispatch workers were paid the same rate, or 14.5 RMB ($2.26) an hour for both normal and overtime hours.

Though regular workers were better compensated in terms of wages and benefits, China Labor Watch says both groups were subjected to long hours and low wages, with workers putting in more than 100 overtime hours during peak season, even though the legal limit is 36 hours, and some working consecutively for 14 days. Workers on average earned wages between 2000 to 3000 RMB ($312.12 to $468.19), significantly less than Hengyang’s monthly average wage of 4,647 RMB ($725.22), but often had their overtime hours as punishment for taking leave or having unexcused absences.

The report also claimed that the factory had poor fire safety in its dormitories, lack of sufficiently protective equipment, verbally abusive managers and the “absence of a functioning labor union.”

“Amazon has the ability to not only ensure its supplier factories respects the rights of workers but also that there is equal pay for equal work,” said China Labor Watch on its site. “Amazon’s profits have come at the expense of workers who labor in appalling working conditions and have no choice but to work excessive overtime hours to sustain a livelihood.”

In a press statement, Amazon said it audited the Hengyang factory most recently in March 2018 and asked them to address “issues of concern” related to dispatch workers and overtime.

“Amazon takes reported violations of our Supplier Code of Conduct extremely seriously. Amazon regularly assesses suppliers, using independent auditors as appropriate, to monitor continued compliance and improvement. In the case of the Foxconn Hengyang factory, Amazon completed its most recent audit in March 2018 and identified two issues of concern. We immediately requested a corrective action plan from Foxconn Hengyang detailing their plan to remediate the issues identified, and we are conducting regular assessments to monitor for implementation and compliance with our Supplier Code of Conduct. We are committed to ensuring that these issues are resolved.”

This is, of course, not the first time labor issues at Foxconn, one of the largest electronic OEMs in the world and the main supplier of Apple’s iPhones, have been scrutinized. Most notably, conditions at its Longhua district factory in Shenzhen were blamed for a series of worker suicides in 2010. Serious fires have also broken out at several of its facilities, including one that resulted in three deaths at a factory that made iPad 2s.

TechCrunch has contacted Foxconn for comment.


Source: The Tech Crunch

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