Tag: Foxconn

  • Apple and Foxconn Team Up for Custom AI Servers in Taiwan

    Apple and Foxconn Team Up for Custom AI Servers in Taiwan

    Apple is teaming up with Foxconn and LCFC, a Lenovo subsidiary, to create its own AI servers powered by Apple Silicon in Taiwan. This strategy is designed to enhance Apple’s data center capabilities for their upcoming Apple Intelligence services and reduce their dependency on Chinese manufacturers.

    The Reason for Choosing Taiwan

    Sources suggest that Apple chose Taiwan primarily to benefit from Foxconn’s extensive expertise in constructing AI servers. Foxconn is already producing servers equipped with Nvidia’s H100 and H200 GPUs and is preparing to collaborate on new Blackwell-based chips.

    Focus on AI Inference Management

    Unlike its rivals such as Amazon, Google, and Microsoft, Apple’s server strategy focuses more on managing AI inference instead of developing large language models. These servers are intended for internal operations, indicating that production volumes will be lower compared to typical data center configurations.

    Collaboration and Design Support

    This partnership goes beyond just server production; it also involves engineering and design assistance from Foxconn and LCFC. Although Apple may not have a lot of experience in designing data center servers, the development is expected to progress rapidly since these servers are less complex than Nvidia’s GB200 systems.

    Foxconn has AI research facilities in Hsinchu, Taiwan, and San Jose, California, where they are currently collaborating with Nvidia on upcoming GB300 server initiatives. Moreover, additional manufacturing partners like Universal Scientific Industrial may also join to further diversify the production process.

    Tags: , ,
  • iPhone 16 Series Now in Mass Production

    iPhone 16 Series Now in Mass Production

    Apple is anticipated to unveil the iPhone 16 series in early September, potentially on September 10. Foxconn has commenced the mass production of these devices. According to a report, one of Foxconn’s factories in China has begun large-scale recruitment to boost its production capacity.

    Foxconn, a Taiwanese multinational electronics contract manufacturer, has long been responsible for producing iPhones and other Apple devices through outsourcing.

    Increased Shipment Target

    Apple is reportedly very optimistic about the iPhone 16 series’ shipment volume. The shipment target has been raised by over 10% compared to the iPhone 15 series, aiming for more than 90 million units. Components for the iPhone 16 series entered mass production early to ensure a smooth assembly process. Display panels, in particular, started mass production in June to meet the September launch timeline. Samsung Display and LG Display are manufacturing OLED displays for the iPhone 16 series. By the end of 2024, Samsung and LG are expected to supply Apple with around 80 million and 43 million panels, respectively.

    Design Enhancements

    Rumors suggest that the iPhone 16 series will feature even thinner bezels than last year’s models. The Pro models are speculated to have larger displays compared to the iPhone 15 Pro and iPhone 15 Pro Max. Specifically, the iPhone 16 Pro and iPhone 16 Pro Max are rumored to come with 6.3″ (upgraded from 6.1″) and 6.9″ (upgraded from 6.7″) panels, respectively. However, the non-pro models are expected to retain the 6.1″ and 6.7″ sizes, similar to the non-pro iPhone 15 models.

    Tags: , ,
  • Foxconn Boosts Hiring for iPhone 16 Launch in China

    Foxconn Boosts Hiring for iPhone 16 Launch in China

    Foxconn, Apple’s primary supplier, is intensifying its recruitment efforts in anticipation of the eagerly awaited AI-enabled iPhone 16, set to launch this autumn. With expectations of high demand due to the iPhone 16's new AI capabilities, Apple is striving to align its production to meet these forecasts.

    Foxconn is providing competitive hourly wages and bonuses to attract workers. In Zhengzhou, the hourly wage is 25 yuan (US$3.44), and returning workers can receive bonuses up to 7,500 yuan, a rise from the 6,000 yuan bonus offered a month earlier. Local labor agencies are actively promoting these lucrative positions for temporary and returning employees.

    In Shenzhen, Foxconn is similarly increasing its workforce. Temporary workers are being offered an hourly wage of 21-22 yuan, while returning permanent employees can earn up to 6,000 yuan monthly for the first three months, with the possibility of pay increases for extended stays.

    iPhone 16 Features and Expectations

    The upcoming iPhone 16 is anticipated to include advanced AI functionalities through the Apple Intelligence platform, announced at the WWDC in June. This development is expected to incite a wave of device upgrades among consumers. Apple plans to ship at least 90 million iPhone 16 units in the latter half of the year, aiming for a 10% growth compared to the previous model.

    Leading the smartphone sales in mainland China in Q4 last year, Apple is currently ranked third behind Vivo and Honor. Despite a 19.1% sales decline in Q1, Apple recorded a 2.7% year-on-year sales increase during the midyear online shopping period, attributed to significant discounts.

    During the 618 e-commerce promotion (May 20 – June 20), China’s overall smartphone sales rose by 6.8% year-on-year. Huawei experienced a notable 42.4% year-on-year sales increase, while Apple’s sales grew by 2.7% due to discounts of up to CNY 2,350 (US$326).

    Foxconn’s enhanced hiring efforts are essential as they prepare for the iPhone 16 launch. With the new AI features anticipated to fuel consumer interest, Apple is set to sustain its competitive advantage in the market and achieve its ambitious sales goals for 2024.

    Tags: , ,
  • Foxconn Invests $551M in Vietnam for Smart Tech Production

    Foxconn Invests $551M in Vietnam for Smart Tech Production

    Foxconn is expanding its presence in Vietnam with a significant investment of $551 million (approximately 4.013 billion Yuan) across two new projects in northern Vietnam’s Quang Ninh Province. These ventures are planned for completion by July 2026 and will be centered on the production of smart technology.

    Smart Entertainment Products and System Equipment

    The first project, based in Song Khoai Amata Industrial Park, involves an investment of $263.7 million (around 1.92 billion Yuan). This facility will focus on manufacturing smart entertainment products, with an anticipated annual output of 4.18 million units.

    The second project is located in Bac Tien Phong Industrial Park and comes with an investment of $287.2 million (approximately 2.092 billion Yuan). Covering an area of 12.4 hectares, this facility will produce intelligent system equipment. After a period dedicated to machinery installation and testing, official production is projected to commence in May 2027.

    Tags: , ,
  • Foxconn announces plans to invest INR 1,200 crore in India for construction of new chip manufacturing facility.

    Foxconn announces plans to invest INR 1,200 crore in India for construction of new chip manufacturing facility.

    Foxconn Expands Presence in India with New Chip Assembly and Testing Plant

    Foxconn, the largest iPhone manufacturer and a key supplier to global tech firms, is making a significant move to expand its presence in India. The company is investing Rs. 1,200 crore ($150 million) in a new chip assembly and testing plant in partnership with the HCL Group. This investment aims to tap into the growing semiconductor industry in India and further extend Foxconn’s global manufacturing reach.

    Strategic Investment in India’s Tech Sector

    This latest investment follows Foxconn’s previous announcement in November 2023, where it committed over $1.6 billion through its subsidiary, Hon Hai Technology India Mega Development, for a similar initiative. Despite facing challenges, such as the termination of its joint venture with the Vedanta Group, Foxconn remains dedicated to its expansion plans in India. The company’s continued investments and partnerships in the country demonstrate its commitment.

    Collaboration with Indian Government and Local Partners

    In addition to these investments, Foxconn has been working closely with the Indian government and local partners to enhance its manufacturing capabilities. Just last month, the company announced a $37.2 million investment with the HCL Group for a chip packaging and testing facility, following the termination of its partnership with Vedanta. Foxconn has also partnered with the Tamil Nadu government to establish a new electronic components facility in the Kancheepuram district near Chennai, with an investment of Rs. 1600 crore. This facility will complement Foxconn’s existing operations in India, including its iPhone assembly campus.

    Boosting India’s Ambitions in Semiconductor Manufacturing

    Foxconn’s investments in India are a significant boost to the country’s ambitions of becoming a global center for semiconductor and electronics manufacturing. The company’s confidence in the potential of the Indian market is evident through its continued commitment and strategic partnerships. By establishing a chip assembly and testing plant, Foxconn aims to leverage India’s growing semiconductor industry and expand its manufacturing capabilities.

    With Foxconn’s expansion in India, the country is set to witness a boost in its tech sector and strengthen its position in the global electronics manufacturing landscape. The investments made by Foxconn highlight the growing importance of India as a key player in the semiconductor industry.

    Tags: , ,
  • Despite Chip Challenges, Foxconn Sets Sights on 2024 Improvement

    Despite Chip Challenges, Foxconn Sets Sights on 2024 Improvement

    Foxconn, a major player in electronics manufacturing and known for producing iPhones for Apple, is optimistic about the year 2024. Despite facing challenges and experiencing financial setbacks in the previous year, including a significant hit from its stake in Sharp Corp, Foxconn’s Chairman, Liu Young-way, expressed positivity during the company’s annual employee event.

    Positive Outlook for the Year Ahead

    Liu Young-way shared his thoughts on the company’s outlook for the upcoming year, indicating that it is expected to be slightly better despite the challenges faced by Foxconn. This positive sentiment suggests that the company is anticipating a turnaround and better financial performance in the near future.

    Challenges in Chip Supply

    One of the major obstacles Foxconn is currently facing is the shortage of chips for AI servers, which are crucial for the next generation of technology. The demand for these chips is high, but there is a lack of sufficient manufacturing facilities to meet the demand. In response to this issue, Liu mentioned the possibility of constructing new factories to address the growing demand for AI technology.

    Potential Impact of Economy and Political Issues

    However, the global economy and political factors may pose challenges for Foxconn. The company’s sales could be affected if people become less inclined to purchase gadgets due to these external factors. Apple, one of Foxconn’s key partners, is already expecting lower iPhone sales and reduced profits, particularly in China. Chinese customers are increasingly opting for other brands and phones that offer foldable designs or utilize chips manufactured within China.

    Anticipation of Earnings Announcement

    As Foxconn prepares to disclose its earnings for the previous quarter and provide insights into its projections for the future, industry observers are closely monitoring the situation. Although the company’s stock has experienced a slight decline this year, its upcoming announcements will shed light on the direction of the technology industry, particularly in terms of manufacturing and the availability of components for the latest gadgets and AI technology.

    Tags: ,

  • Foxconn Diversifying Beyond iPhones, Entering Electric Vehicle Market

    Foxconn’s Entrance into the Electric Vehicle Market

    Foxconn, a well-known supplier for Apple, is undertaking a strategic transformation by stepping into the electric vehicle (EV) industry, focusing its efforts in Zhengzhou, China. This shift is a direct response to the diminishing demand for smartphones and consumer electronics.

    Broadening the Product Range

    Foxconn is just one of the several companies looking to participate in the EV revolution. In January, the corporation established Foxconn New Energy Automobile Industry Development (Henan) Co, with a dedicated focus on electric automobiles. The primary goal of this venture is not only to expand their product range but also to secure a share of the rapidly growing EV market. This undertaking will encompass various aspects of car manufacturing, such as producing components, advancing motor technology, and marketing new energy vehicles.

    Transitioning from Electronics Production

    This strategic maneuver holds substantial importance for Foxconn, a company traditionally associated with electronics production. In 2023, the revenue of this Taiwanese powerhouse declined compared to the previous year, prompting the move towards the automotive domain. The introduction of an electric cargo van and plans for a compact SUV further underscore their commitment to the EV sector.

    Leveraging the Upward Trend

    Interestingly, Foxconn’s pivot coincides with a period of stagnation in the global smartphone market. By investing in EVs, they could be making a shrewd move, leveraging the escalating interest in environmentally friendly and sustainable transport options.

    Potential Advancements in EV Technology

    Additionally, Foxconn’s foray into the EV sector might catalyze a wave of innovations in electric vehicle technology and production processes across the industry. Leveraging their extensive background in manufacturing and global supply chain management, Foxconn has the potential to inject fresh perspectives and enhance efficiency within the EV market.

    In summary, Foxconn’s entry into the electric vehicle sphere demonstrates their commitment to adapting to evolving market trends and seizing new prospects. With the demand for smartphones and consumer electronics on the decline, the company is strategically positioning itself to flourish in the flourishing EV sector.

    Tags: , ,
  • India sees increased investment from Foxconn, strengthening worldwide shift in manufacturing

    India sees increased investment from Foxconn, strengthening worldwide shift in manufacturing

    Foxconn Technology Group Secures Approval for $1 Billion Investment in Apple Manufacturing Plant in India

    Foxconn Technology Group, a major player in the technology manufacturing industry, has recently gained approval for an additional $1 billion investment in its Apple product manufacturing plant in India. This brings the total investments in the facility to an impressive $2.7 billion, solidifying its position as Foxconn’s key manufacturing hub in the country.

    Expanding Capacity for Apple Devices

    This substantial increase in investment is specifically aimed at boosting the capacity for manufacturing Apple devices, with a potential focus on iPhone production. By diversifying its production beyond China, Foxconn is aligning with its goal of establishing a pivotal manufacturing hub outside of its traditional stronghold.

    Strengthening Foothold in Southern India

    The Karnataka state government has also confirmed Foxconn’s commitment to expansion by starting a $1.67 billion investment. This strategic move further solidifies the company’s foothold in southern India. The project is expected to commence iPhone production by April 2024 and is estimated to create approximately 50,000 job opportunities, contributing significantly to the economic development of the region.

    Speculations on Use of Funds

    While the exact details of how the newly secured funds will be utilized remain confidential, industry analysts speculate that the investment could be directed towards expanding capacities for various Apple devices, including the iPhone. As Foxconn is responsible for assembling a significant portion of iPhones globally, this move allows the company to diversify its manufacturing footprint amidst economic challenges and heightened tensions with the United States.

    Shifting Manufacturing Capacities

    The trend of manufacturing giants, such as Foxconn, redirecting capacities away from China has gained momentum in recent years. This shift is primarily driven by economic challenges and strained international relations. By doing so, Foxconn not only reaffirms its commitment to its crucial partnership with Apple but also reflects the industry-wide movement to establish robust supply chains in India.

    India’s Growing Importance in Manufacturing

    Interestingly, the Tata conglomerate, another prominent Apple collaborator, is actively working towards establishing one of India’s largest iPhone assembly plants in Tamil Nadu. This further reinforces India’s position as a key player in the global manufacturing landscape. While regulatory scrutiny in India has discouraged some Chinese companies from setting up operations in the country, Apple’s partners, including Foxconn, are accelerating their efforts to build a resilient supply chain. This coincides with a broader departure of Chinese firms amid tensions between Beijing and New Delhi.

    A Pivotal Moment for Foxconn

    Foxconn’s increased investment in India signifies a pivotal moment in the evolution of its manufacturing plans. It also reflects the global economic downturn in China and the broader geopolitical tensions that are shaping the dynamics of the technology manufacturing industry. With its strategic investments and commitment to diversification, Foxconn is positioning itself for continued success in the ever-changing landscape of the global technology market.

    Tags: , ,
  • Foxconn and Lenovo receive subsidies to boost tech manufacturing in India

    Foxconn and Lenovo receive subsidies to boost tech manufacturing in India

    India’s Push to Become a Global Hub for Electronics Manufacturing

    India’s recent decision to grant subsidies to 27 tech companies, including Apple supplier Foxconn and Lenovo, is a significant step in its journey to establish itself as a global hub for electronics manufacturing. This move, part of India’s Production Linked Incentive (PLI) scheme, goes beyond providing financial support to these companies; it is a strategic move in India’s economic development.

    Shifting from a Player to a Hub

    At its core, the PLI scheme reflects India’s ambition to transition from a mere player in the global tech supply chain to a central hub. The government’s inclusion of major international firms like Dell, HP, and AsusTek Computer demonstrates India’s readiness to compete on the global stage of tech manufacturing. Furthermore, 23 out of the 27 approved applicants are prepared to start production immediately, with the remaining companies gearing up to commence within 90 days.

    Reducing Reliance on Imports

    The implications of this development reach beyond job creation, although the projected 50,000 direct and 150,000 indirect jobs are significant. This move aligns with Prime Minister Narendra Modi’s “Make in India” campaign, which aims to decrease India’s dependence on imports, particularly from China. By strengthening its domestic manufacturing capabilities, India positions itself as a viable alternative to China for global manufacturers looking to diversify their production bases.

    A Nuanced Move with Lenovo

    Interestingly, the inclusion of Lenovo, a Chinese tech giant, in the PLI scheme is a nuanced move. This decision comes at a time when other Chinese companies are facing increased scrutiny and regulatory challenges in India. The inclusion of Lenovo showcases India’s balanced approach, acknowledging the importance of global partnerships even in the midst of geopolitical tensions.

    A Strategic Maneuver

    The decision to subsidize tech manufacturing in India extends beyond economic growth. It is a strategic maneuver that positions India as a pivotal player in the global tech landscape. As India continues to attract major tech companies and foster domestic manufacturing capabilities, it solidifies its position as a key player in the international electronics manufacturing industry.

    Source: 1, 2

    Tags: , ,