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☆ Foxconn Q1 sales edge up, but Q2 outlook poor
▼ + stars: | 2023-04-05 | by ( ) www.reuters.com time to read: +2 min

The rise in sales for the first three months of the year, to T$1.46 trillion, was a fresh record high for the same period, and in line with previous guidance, Foxconn (2317.TW), formally called Hon Hai Precision Industry Co Ltd, said. For smart consumer electronics products, which includes smartphones, revenue in March declined due to new product launches in the same period last year. More than half of Foxconn's revenue comes from consumer electronics. Foxconn shares have risen 4.1% so far this year, lagging the broader Taiwan market (.TWII) which is up 12.2%. (This story has been corrected to change figure to T$1.46 trillion from T$1.42 billion in paragraph 3)Reporting by Ben Blanchard, Editing by Louise Heavens and Christina FincherOur Standards: The Thomson Reuters Trust Principles.

☆ India has big manufacturing plans. Goldman names 2 global stocks to benefit — giving one 60% upside
▼ + stars: | 2023-03-30 | by ( Weizhen Tan | ) www.cnbc.com time to read: +3 min

The investment bank called the plan, known by its Production-Linked Incentive Schemes, as a "substantial opportunity" for Greater China tech firms. The initiative incentivizes foreign companies to start manufacturing in India and encourages local firms to expand their production and exports there. Goldman said tech represents more than half of the opportunity. Under the IT hardware initiative, for instance, Greater China tech firms represent 76% of potential capital expenditure contribution. Stock picks Goldman named two buy-rated stocks that it said stand to benefit from India's big manufacturing plans.

☆ Analysis: Chinese suppliers race to Vietnam as COVID let-up opens escape route from Sino-U.S. trade war
▼ + stars: | 2023-03-16 | by ( Francesco Guarascio | Thomson Reuters | Francesco Leads A Team Of Reporters In Vietnam That Covers Top Financial | ) www.reuters.com time to read: +6 min

Adding impetus to the move is the increasing cost of labour in China, expanding U.S. restrictions on high-tech-related trade with China, and tit-for-tat tariffs from a Sino-U.S. trade war that triggered a past wave of Chinese investment in Vietnam. "Enquiries from Chinese firms about manufacturing investment in Vietnam grew exponentially in the last quarter of last year," said Michael Chan, senior director of leasing at industrial real estate specialist BW Industrial Development. "Chinese investment has also increased remarkably," he said. Chinese firms also experience longer times to obtain staff visas and work permits, said Filippo Bortoletti, who heads the Vietnamese unit of investment consultancy Dezan Shira. "Chinese companies move here mostly to serve their clients who moved earlier," said BW Industrial Development's Chan.

TAIPEI, March 15 (Reuters) - Apple Inc supplier Foxconn (2317.TW) on Wednesday said it plans to ramp up investment outside of China and efforts to attract automakers to its contract manufacturing business, as the company reported weaker demand for consumer electronics. Foxconn, which assembles around 70% of iPhones, has been diversifying production away from China, whose strict COVID restrictions disrupted its biggest iPhone plant last year. The company also seeks to avoid a potential hit to its business from mounting trade tensions between Beijing and Washington. "Foxconn will actively expand its EV business in North America and work more comprehensively with traditional and start-up car makers," Liu said. Liu said revenue from EV components is expected to rise sharply to between T$50 billion and T$100 billion this year from T$20 billion last year.

Now overseas demand is slumping amidst a local credit crunch and a corruption crackdown. A trade agreement and warmer relations with Washington spared its manufacturers from tariffs and sanctions applied to its northern neighbour. Now overseas demand is stuttering. Vietnam's exports of goods and services have been slowingFollow @KatrinaHamlin on TwitterCONTEXT NEWSVietnam's economy grew 8.02% in 2022, the fastest annual pace since 1997, according to data released by the country’s General Statistics Office on Dec. 29. Vietnamese exports were flat in February and fell 23.4% in January compared to a year earlier, according to Refinitiv data released on March 9.

☆ Foxconn Signals India’s Arrival as Electronics Manufacturer
▼ + stars: | 2023-03-06 | by ( Megha Mandavia | ) www.wsj.com time to read: 1 min

The postpandemic reshuffle of the world’s electronics supply chain is speeding up. At the center of the change: India and Apple . Apple supplier Hon Hai Precision Industry , better known as Foxconn, plans to more than double its iPhone production at an existing plant near Chennai, India, to around 20 million units by 2024, The Wall Street Journal reported last week, and roughly triple the number of workers to as many as 100,000.

☆ Foxconn Signals India’s Arrival in Electronics Manufacturing
▼ + stars: | 2023-03-06 | by ( Megha Mandavia | ) www.wsj.com time to read: 1 min

For now, by building in Ohio, Foxconn can offer customers access to U.S. federal incentives under the Inflation Reduction Act, Daiwa Capital Markets analyst Kylie Huang said. That's a selling point as traditional automakers juggle building gasoline-powered vehicles with plans to build their own EV capacity. "If they don't get one this year, next year will be more difficult," Huang said of Foxconn's search for an EV contract with a traditional automaker. "Sooner or later, maybe the top, traditional (automakers) say, 'Hey, I want to become a product marketing company. Foxconn wants to build around 300,000 EVs at the plant, Ian Upton, director of production control at Foxconn Ohio, told Reuters.

☆ Taiwan's Foxconn seeks chip, EV cooperation with India
▼ + stars: | 2023-03-04 | by ( ) www.reuters.com time to read: +2 min

Taiwan's Foxconn, the world's largest contract electronics maker and formally called Hon Hai Precision Industry Co Ltd, said Liu had visited India from Feb. 27 to Saturday. "My trip this week supported Foxconn's efforts to deepen partnerships, meet old friends and make new ones, and seek cooperation in new areas such as semiconductor development and electric vehicles," Liu said in a statement. Foxconn has ambitious plans to make EVs, and is also looking to make chips. He did not mention any new concrete investment plans in the country, and Foxconn has not announced any since his trip. Currently, iPhones are assembled in India by at least three of Apple's global suppliers - Foxconn and Pegatron (4938.TW) in Tamil Nadu, and Wistron in Karnataka.

☆ Foxconn chairman to visit COVID-hit iPhone plant in China -source
▼ + stars: | 2023-02-21 | by ( Sarah Wu | ) www.reuters.com time to read: +1 min

TAIPEI, Feb 21 (Reuters) - Foxconn Chairman Liu Young-way departed on Tuesday for a four-day inspection of the company's iPhone plant in Zhengzhou, China, a source with direct knowledge of the matter said. Foxconn (2317.TW), formally known as Hon Hai Precision Industry Co, declined to comment. The source declined to be identified as they were not authorised to speak to the media. The Taiwanese company's iPhone plant was hit late last year by a COVID-19 outbreak that prompted thousands of worker departures and unrest, as well as production disruptions. In January, Foxconn said output at its Zhengzhou plant had "basically returned to normal."

☆ Taiwan fines Foxconn for unauthorised China investment
▼ + stars: | 2023-01-19 | by ( ) www.reuters.com time to read: +2 min

TAIPEI, Jan 19 (Reuters) - Taiwan on Thursday fined Foxconn (2317.TW) T$10 million ($329,088) for making an unauthorised investment in a Chinese chip firm, but said the Taiwanese iPhone assembler had cooperated in the case and so received a lesser punishment. Taiwan, which Beijing views as sovereign Chinese territory, has kept a wary eye on China's ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology. The Tsinghua Unigroup did not immediately respond to a request for comment. The ministry said Foxconn has committed to continue to invest in Taiwan this year and next and the ministry's Investment Commission will "require the company to implement its commitments". Taiwan prohibits companies from building their most advanced foundries in China to ensure they do not site their best technology offshore.

☆ Exclusive: Apple supplier BOE plans new factories in Vietnam
▼ + stars: | 2023-01-11 | by ( Francesco Guarascio | ) www.reuters.com time to read: +3 min

HANOI, Jan 11 (Reuters) - Chinese display maker BOE Technology Group Co Ltd (000725.SZ), a supplier of both Apple Inc (AAPL.O) and Samsung Electronics Co Ltd (005930.KS), plans to invest a substantial sum to build two factories in Vietnam, two people familiar with the matter said. BOE plans to make the more sophisticated organic light-emitting diodes (OLED) screens at the site rather than liquid-crystal displays (LCDs), the person said. Apple, which included BOE in its 2021 list of manufacturing partners, uses OLED screens for its latest iPhone smartphones. The U.S. tech giant, however, plans to start making mobile screens in-house by next year, Bloomberg reported on Wednesday. BOE's Vietnam plan is not specifically aimed at supplying Apple, the person said.

☆ Apple to sign Luxshare for iPhone production in China - FT
▼ + stars: | 2023-01-04 | by ( ) www.reuters.com time to read: +2 min

Luxshare, which was founded in 2004, became an Apple supplier in 2011 and has steadily moved up the hardware giant's value chain, from making connector cables for the iPhone and Macbook to manufacturing Airpods. Analysts expected Apple to diversify its supplier base amid production disruptions in China due to employee unrest at a factory operated by Foxconn and COVID-19 induced lockdowns. Apple in November warned of lower shipments of its premium iPhone 14 models following significant production cuts. Industry research firm TrendForce said on Saturday that Apple decided to employ Luxshare as one of the assemblers for the upcoming iPhone 15 Pro Max. TrendForce added that Luxshare's only iPhone assembly plant is located in China and it doesn't plan on setting up an iPhone production line at its Vietnam plant where it assembles Apple accessories.

☆ Foxconn's Covid-hit China plant close to resuming full production, sources say
▼ + stars: | 2023-01-03 | by ( ) www.cnbc.com time to read: +1 min

Foxconn's Covid-hit iPhone plant in China's Zhengzhou city is almost back to full production, with its December shipments reaching about 90% of initial plans, two people with direct knowledge of the matter said. It was also hit by a bout of worker unrest over payment issues. Foxconn has been offering bonuses to attract new workers and convince those still there to stay on. A company source told Reuters last month that it was aiming for the plant to resume full production around late December to early January. "Production has almost fully resumed," said one of the people on Tuesday, who declined to be identified as the information was private.

☆ Foxconn's COVID-hit China plant close to resuming full production, sources say
▼ + stars: | 2023-01-03 | by ( Yimou Lee | ) www.reuters.com time to read: +2 min

TAIPEI, Jan 3 (Reuters) - Foxconn's COVID-hit iPhone plant in China's Zhengzhou city is almost back to full production, with its December shipments reaching about 90% of initial plans, two people with direct knowledge of the matter said. A company source told Reuters last month that it was aiming for the plant to resume full production around late December to early January. "Production has almost fully resumed," said one of the people on Tuesday, who declined to be identified as the information was private. The second person said production was nearly back to normal but that company officials remained cautious over the outlook due to a spike of COVID-19 cases across China. The Zhengzhou plant's troubles highlighted the difficulties companies and workers had in adhering to China's zero-COVID-19 policy.

☆ Foxconn's COVID-hit China plant close to resuming full production -sources
▼ + stars: | 2023-01-03 | by ( Yimou Lee | ) www.reuters.com time to read: +2 min

Foxconn, formally known as Hon Hai Precision Industry, is gearing up to supply cars, and the chips and batteries that go into them, to global marques. It sees automakers entrusting the company with production in Indonesia, Thailand, Saudi Arabia, the United States and beyond. Getting there requires Foxconn ditching a tried and tested business model. To make smartphones, the company relies on a few factories it owns in China and it has little say over the underlying supply chains and which components to use. Foxconn has also tied up with Ohio-based Lordstown Motors (RIDE.O) in the United States; its factory is already making electric pickup trucks and could start supplying to other American brands within a year.

☆ Apple finds a happy home in India
▼ + stars: | 2022-12-20 | by ( Pranav Kiran | ) www.reuters.com time to read: +3 min

Helped by generous subsidies, Taiwanese Apple suppliers are starting to churn out more iPhones in India. Analysts at JPMorgan reckon India will have 6% of iPhone manufacturing capacity in 2022, and the rest will remain in China. Incentives and other subsidies partially compensate for inefficiencies in India, where demand for pricier devices is slowly picking up. HDFC Securities estimates that for an average smartphone, as little as 14% of the value is added in India. Whether or not India gets that far, Apple at least gets a happy new home.

☆ Foxconn fine for unauthorised China investment likely to be imposed soon - source
▼ + stars: | 2022-12-19 | by ( ) www.reuters.com time to read: +2 min

TAIPEI, Dec 19 (Reuters) - Foxconn (2317.TW), the world's largest contract electronics maker, is likely to be fined soon by Taiwan's government for an unauthorised investment in a Chinese chip maker, a person with direct knowledge of the situation said on Monday. Taiwan said on Saturday it would fine Foxconn over the investment. Taipei also prohibits companies from building their most advanced chip foundries in China to ensure they do not site their best technology offshore. Taiwanese law states the government can prohibit investment in China "based on the consideration of national security and industry development". Foxconn has been seeking to acquire chip plants globally as a worldwide chip shortage rattles producers of goods from cars to electronics.

☆ Foxconn unit to sell stake in Chinese chip firm Unigroup
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Ann WangTAIPEI, Dec 17 (Reuters) - Taiwan's Foxconn (2317.TW), the world's largest contract electronics maker, said on Friday its subsidiary in China has agreed to sell its entire equity stake in embattled Chinese chip conglomerate Tsinghua Unigroup. Foxconn, a major Apple Inc (AAPL.O) supplier and iPhone maker, disclosed in July it was a shareholder of Tsinghua Unigroup. Xingwei controls a 48.9% stake in a different entity that holds a 20% stake in the vehicle owning all of Unigroup. The company has been seeking to acquire chip plants globally as a worldwide chip shortage rattles producers of goods from cars to electronics. Originating as a branch of China's prestigious Tsinghua University, Tsinghua Unigroup emerged in the previous decade as a would-be domestic champion for China's laggard chip industry.

☆ iPhone maker Foxconn reports slump in revenue after unrest and Covid outbreak at key China plant
▼ + stars: | 2022-12-05 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +2 min

Foxconn workers at Taiwanese firm's Zhengzhou, China factory, walked out over a pay dispute with the company. The Zhengzhou factory is estimated to account for more than 70% of Apple's global assembly of iPhones. Foxconn, the world's largest contract electronics maker, on Monday reported a sharp drop in November revenue after the company struggled with a Covid outbreak and worker unrest at the world's biggest iPhone factory in China. In a bid to entice workers back to the factory, Foxconn announced a round of bonuses last month. Investors will now be watching for any impact on Apple , given its reliance on the Zhengezhou factory for global iPhone production.

HONG KONG, Dec 1 (Reuters Breakingviews) - Covid-19 lockdowns and protests across China have highlighted the risks of the mutual dependence between Taiwan's Foxconn and its top customer Apple (AAPL.O). It makes 70% of the world’s iPhones, according to Fubon Research. Meanwhile Apple’s huge investments into Foxconn have paid off: the U.S. company is the most profitable smartphone maker by far. Foxconn has been scrambling to contain the fallout, offering bonuses to temporary workers and shifting production to other facilities. At the time, Foxconn said it was bringing the situation under control and was coordinating with other plants to increase production.

☆ Foxconn unrest risks iPhone shipments, weighs on Apple shares
▼ + stars: | 2022-11-26 | by ( Yimou Lee | ) www.reuters.com time to read: +5 min

Apple shares were down 1.9% in late morning trade on Friday, while the benchmark Nasdaq index was down 0.3%. LOWER SHIPMENTSKGI Securities analyst Christine Wang said if the current issue lasts through December, around 10 million units of iPhone production will be lost, which translates to 12% lower iPhone shipment in the last quarter of 2022. REUTERS/Ann Wang 1 2Wedbush Securities estimates many Apple stores now have 25% to 30% fewer iPhone 14 Pros than normal heading into the holiday shopping season. In a statement on Nov. 7, Apple said it expected lower iPhone 14 Pro and iPhone 14 Pro Max shipments than previously anticipated. Another Foxconn source familiar with the matter said some new hires had left the campus but did not elaborate on how many.

☆ Foxconn is stuck between rock and hard place
▼ + stars: | 2022-11-24 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Nov 24 (Reuters Breakingviews) - The $45 billion top Apple (AAPL.O) supplier Foxconn (2317.TW) is trying to resolve its problems in China with cash. Financial fixes can only do so much to tackle a problem stemming from Beijing’s zero-Covid policy. Workers have been upset after being forced to live in difficult conditions designed to stamp out Covid-19 infections. In every way, manufacturers in China face a long and bumpy road to recovery if they try to please both their workers and Beijing. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

A source familiar with the situation in Zhengzhou said production at the plant was unaffected by the worker unrest and output remained "normal". It makes most of the phones at the Zhengzhou plant, though it has other smaller production sites in India and southern China. Shares of Foxconn have slipped 2% since the unrest emerged in late October. Before the unrest, the Zhengzhou plant employed some 200,000 people. To retain staff and lure more workers Foxconn has had to offer bonuses and higher salaries.

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