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Foxconn is still increasing its investment in Zhengzhou. At the end of July, Foxconn Precision Industry Co., Ltd. released a major investment announcement, stating that Foxconn will invest in the construction of a new business headquarters building in Zhengzhou to carry out the functions of the new business headquarters.
The first phase of the project is located in Zhengdong New District, with a construction area of about 700 hectares and a total investment of about 1 billion yuan. The main construction includes seven centers: headquarters management center, research and development center, engineering center, strategic industry development center, strategic industry finance platform, industry research institute and key talent center, marketing center, and supply chain management center.
The positioning of the new factory is not closely related to traditional OEM business, but aims to explore new energy related businesses, including new energy vehicle vehicles, energy storage batteries, digital healthcare, and robotics industry bases.
The Henan Provincial Government released the "Several Measures to Solidly Promote Economic Stability and Improvement in the Second Half of 2024" in late July this year, aiming to achieve an annual automobile production of over 1.5 million vehicles, including over 800000 new energy vehicles.
Foxconn and Zhengzhou are once again heading in both directions. Time Finance has noticed that just over a month after the official release of the iPhone 16 series, the employment demand of Foxconn in Zhengzhou has once again reached its peak. Multiple internal employees and recruiters have told Time Finance that Foxconn's Zhengzhou factory has increased its production capacity and entered the sprint stage of production.
Production line expands recruitment, bonus increases to 7500 yuan
Approaching the release of new Apple models, a large number of laborers are flocking to Foxconn in Zhengzhou.
Time Finance has learned that August to December is the peak season for iPhone product shipments and the industry. At the end of July, Chen Da, a recruitment agent for Foxconn in Zhengzhou, began to be busy. He posted recruitment information for Foxconn in Zhengzhou on various job groups and social media platforms.
Chen Da told Time Finance that the demand for labor on the production line is rapidly increasing, and the highest hourly wage for workers has been raised to 25 yuan. If the manufacturing workshop works for three months, the bonus will reach 7500 yuan. At least 50000 new employees have entered the factory in the past two weeks, and we are still recruiting on a large scale. If there is still a shortage of manpower in the subsequent production, it is not a problem to raise the bonus to 8000 yuan. According to him, the current production line is already fully producing the new iPhone 16.
June was relatively easy, but since mid July, the workload has been directly increased, with an average of more than 2 hours of overtime per day. A large number of new employees have been hired, and their overall proficiency cannot keep up, resulting in everyone's workload approaching saturation, "said an employee of Foxconn's assembly production line to Time Finance.
Wang Di, who has been working for less than a week, also felt the tense atmosphere of the production line - the restaurant is often overcrowded during peak dining hours. He told Time Finance that recently, due to some production lines not meeting the required output, the entire production line had to work overtime to catch up.
After entering the peak production season, taking leave will be heavily criticized, "Wang Di told Time Finance. This is Wang Di's third time entering the factory, and like most short-term temporary workers, he values the generous bonus system during peak employment periods.
Generally speaking, Foxconn workers in Zhengzhou have high mobility. During peak seasons, the comprehensive monthly income of general workers is 5000-7000 yuan, while during off-season when overtime is low, the comprehensive monthly income of general workers is 3000-5000 yuan.
IPhone 16 shoulders heavy responsibility, Foxconn wants to fulfill its' car making dream '
At the 2024 Apple Developer Conference held in June this year, Apple launched the "Apple Smart". Industry insiders predict that the iPhone 16 will become Apple's first AI powered phone, which can deeply embed AI into the system and comprehensively enhance the capabilities of the intelligent voice assistant Siri.
Recently, there have been reports that Apple has made slight adjustments to its stocking target for the iPhone 16 series, with a revised stocking target of approximately 90 million units.
Another source revealed that Apple has informed its suppliers and partners that their goal is to increase the shipment volume of the new iPhone by about 10% compared to the previous generation. In the second half of 2023, the shipment volume of iPhone 15 will be 81 million units.
Apple's operations in Greater China are under pressure. According to financial report data, in the second quarter of 2024, Apple's revenue in Greater China was $14.7 billion, a year-on-year decrease of 6.5%, making it the only market in the region to experience a decline, exceeding expectations. In the eyes of industry insiders, the iPhone 16 series products focus on AI functionality, which may drive iPhone users to switch devices.
The production task of the high-end iPhone 16 series is still undertaken by factories in China. Wedbush Securities analyst Ives said that Indian factories can produce some basic models or other parts of Apple hardware. But high-end models such as Pro and Pro Max will continue to be produced in China.
Before 2013, Foxconn had almost entirely contracted for the production of iPhones. To meet the growth in iPhone sales, Foxconn once expanded its mainland workforce by 1.3 million people. However, after losing its exclusive contract manufacturing rights, Foxconn had to turn to other businesses.
Foxconn's Industrial Fulian (601138. SH) is reopening the market with AI servers. On the evening of August 4th, Industrial Fulian released its 2024 semi annual performance report, with an expected revenue of 266.09 billion yuan in the first half of the year, a year-on-year increase of 28.69%; The net profit attributable to the parent company was 8.74 billion yuan, a year-on-year increase of 22.04%, reaching a new high since its listing.
Industrial Fulian explained that benefiting from the strong demand growth for AI servers, the company has achieved strong revenue growth in cloud computing business with its ability to vertically integrate the entire AI industry chain, driving the growth of the company's revenue and profitability.
In the automotive field, Foxconn laid out earlier. In 2005, Foxconn acquired Antai Electric, one of the four major automotive wiring harnesses in Taiwan. In 2010, Hon Hai won an order from Tesla and became a supplier of touch screen panels, connectors, and covers for Tesla's central control system. In addition, Foxconn has also formed a joint venture with Yulon Motors to establish Honghua Advanced Company, which will release three new cars in 2021, including Model C, SUV Model E, and Model T.
In early 2024, Foxconn New Energy Vehicle Industry Development (Henan) Co., Ltd. was established with its registered address at Zhengzhou Airport Port in Henan Province. The new company is 100% owned by Foxconn New Business Development Group Co., Ltd., and its business scope includes parts, new materials, and sales of automobiles.
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