Tag Archives: HonHai

Hon Hai shows record profits, keeps making money from making iPhones

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Hon Hai Precision, also known as Foxconn Technology, has reported its earnings for the year and notched a net income of $3.2 billion according to the Financial Times. Most familiar as the manufacturing muscle behind Apple's iPhones, iPads and the like, the Taiwan-based manufacturer beat analyst predictions on high margins for those products. Its subsidiary, Foxconn International Holdings, is the world's largest cellphone maker and produces devices for companies including Nokia and Motorola, but suffered a net loss of $316.4 million. As a result, some are concerned about Foxconn's heavy reliance on Apple as a customer going forward. Still, the company is reportedly continuing a plan to increase vertical integration, by manufacturing the parts for devices and not just putting them together -- we'll see if anyone notices changes in the final product anytime soon.

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Source: FT, BBC, Bloomberg

Sharp takes out $4.6 billion loan while it continues restructuring

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Much of the business news out of Japan from Sharp hasn't been good, but for now at least it's worked out a loan agreement to keep rolling. It's still pursuing a deal with manufacturer Hon Hai Precision Industry / Foxconn that would provide a much-needed injection of capital, but those talks have reportedly stalled. Until something happens there it has a 360 billion yen ($4.6 billion) syndicated loan worked out with a couple of Japanese banks that runs until June 30th 2013. We're still not sure how Sharp will proceed with all this, but hopefully an agreement can be reached that brings its sweet IGZO LCD tech and any other new screens it will be showing off at CEATEC next week to more devices.

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Sharp takes out $4.6 billion loan while it continues restructuring originally appeared on Engadget on Fri, 28 Sep 2012 01:14:00 EDT. Please see our terms for use of feeds.

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Riot breaks out at Foxconn’s Taiyuan plant, reportedly over guards beating up a worker

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Foxconn's Taiyuan plant on riot

News just came in that workers at Foxconn's Taiyuan plant have started a riot in the wee hours in China, and that police forces are on site to control the crowd. While the motive isn't clear, Sina Weibo user Li Tian reports that the riot isn't related to the recent anti-Japan protests, though judging by his photos, much damage has been done in the process. The same site suffered from a strike back in March over salary dispute -- the front-line workers failed to receive the promised pay rise. On a similar note, Foxconn's Chengdu plant also had a riot in June, but that was apparently due to an argument between some workers and a local restaurant owner.

Update: We are seeing unofficial reports claiming the "2,000-people" riot was triggered by security guards hitting a worker at 10pm local time.

Update 2: According to a provincial website, Foxconn's Taiyuan industrial park focuses on magnesium alloy components for consumer electronics, heat conduction products, LED lighting products, mobile phone products and magnesium alloy automotive components.

Update 3: An undercover report from August mentioned that the Taiyuan plant processed the back casing of the iPhone 5. It also highlighted the company's harsh management as well as "practically compulsory" over-time work. We don't doubt that this riot escalated due to dissatisfaction over working conditions.

Update 4: Unsurprisingly, the original Sina Weibo posts have since been deleted. At the time of publication, the author had already noticed that some of the photos were already being censored by Sina. However, the photos over at Baidu Tieba are still intact.

Update 5: Well this is interesting. Foxconn has told Reuters that there was "a fight among workers from different production lines," but the company's spokesperson said they're "still investigating the cause of the fight and the number of people involved." An official statement will be released on Monday.

Update 6: The Next Web has heard that there were no deaths in the incident. Here's hoping those 40 injured people will recover quickly.

Update 7: Foxconn tells CNET both that there weren't any deaths, and that production should resume Tuesday.

Gallery: Riot breaks out at Foxconn's Taiyuan plant, reportedly over guards beating up a worker

Continue reading Riot breaks out at Foxconn's Taiyuan plant, reportedly over guards beating up a worker

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Riot breaks out at Foxconn's Taiyuan plant, reportedly over guards beating up a worker originally appeared on Engadget on Sun, 23 Sep 2012 16:01:00 EDT. Please see our terms for use of feeds.

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Foxconn announces $226 million half-year net loss, blames usual suspects

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Foxconn announces $226 million halfyear net loss, blames usual suspectsManufacturing behemoth Foxconn (Hon Hai) has announced a record net loss of $226 million on turnover of $2 billion for the first half of the year. Unsurprisingly, it attributed the loss to the European debt crisis, global economic slowdown and its customers "continuous struggle" for market share. While it made a big push to encourage new customers, capacity far outstripped demand. In order to stem the tide, it's relocating some of its Shenzhen-based facilities to sites in Northern China -- and it's also in talks with carriers to become an ODM, building white-label smartphones in the same way that Huawei and ZTE do. While the loss isn't a rosy picture, the company does have nearly $2 billion stashed in the bank, so it shouldn't be worrying too much.

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Foxconn announces $226 million half-year net loss, blames usual suspects originally appeared on Engadget on Tue, 28 Aug 2012 06:05:00 EDT. Please see our terms for use of feeds.

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Foxconn investment in Sharp looking less likely due to LCD manufacturer’s shrinking stock value

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Foxconn investment in Sharp looking less likely due to LCD manufacturer's shrinking stock valueFoxconn's parent, Hon Hai Precision Industry, partnered up with Sharp earlier this year, taking a stake in Sharp's Sakai LCD manufacturing plant and investing another $850 million in the company. Unfortunately, that latter investment deal is in danger of dissolving due to Sharp's financial troubles. The Wall Street Journal reports that Sharp's shares have fallen enough in the months since the aforementioned agreement was consummated in March -- due to flagging sales and excess inventory -- that Sharp's given Hon Hai the option to back out of the deal. However, Hon Hai's still interested in buying ten percent of the Japanese company, and has expressed an interest in renegotiating the terms of the investment. So, it seems we'll have to wait and see if Sharp accepts Hon Hai's continued advances, but you can read more about the company's financial woes right now at the source below.

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Foxconn investment in Sharp looking less likely due to LCD manufacturer's shrinking stock value originally appeared on Engadget on Mon, 06 Aug 2012 17:50:00 EDT. Please see our terms for use of feeds.

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Sharp reportedly getting cozy with Hon Hai Precision, helping to make phone and tablet LCDs in Chengdu

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If we believe Japan's Nikkei, the decision by Hon Hai Precision Industry (that is, Foxconn's daddy) to buy a stake in Sharp was really just the start of a long, torrid love affair in LCD production. While Hon Hai is getting the rosy side of the deal for Sharp's TV-oriented Sakai plant, it's now thought to be paying Sharp for display technology that would go into a new factory in Chengdu for small- and medium-sized LCDs used for smartphones and tablets. If all dovetails as nicely as the two would like, the joint venture would see advanced mobile displays manufactured on the cheap -- the best of both worlds. Suffice it to say that there's a few companies that might be interested, as clients like Apple are no strangers to Chengdu. Before you let visions of IGZO-based LCDs on every iPad and iPhone dance through your head, though, remember that neither Hon Hai nor Sharp has confirmed anything -- and that the plant wouldn't be up and running until 2013 at the earliest, even if everything's in sync.

Sharp reportedly getting cozy with Hon Hai Precision, helping to make phone and tablet LCDs in Chengdu originally appeared on Engadget on Thu, 24 May 2012 15:48:00 EDT. Please see our terms for use of feeds.

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Report: Foxconn spending $210 million on Apple production line

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China Daily is claiming that Foxconn will pump $210 million into building a production line in China's Jiangsu province. Local authorities have stated that the plant in Huai'an city will produce components for Apple, no doubt heralding a raft of rampant speculation as to Cupertino's intentions. The building will occupy 40,000 square meters, produce $1.1 billion worth of gear per year and require 35,800 employees -- more than Nokia and Sony have fired in recent months, combined.

Report: Foxconn spending $210 million on Apple production line originally appeared on Engadget on Mon, 21 May 2012 09:47:00 EDT. Please see our terms for use of feeds.

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Sharp posts $1.4 billion extraordinary loss, refocuses on mobile displays

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Sharp posts $1.4 billion extraordinary loss for 2011 - 2012, sees writing on wall in high definitionSharp has reported an extraordinary loss of 117.1 billion yen ($1.4 billion) for the financial year ending March 2012. The company has cited restructuring costs and inventory losses as the causes for the write-down, but also projected that its TV business would lose a further 18.7 percent of its projected sales in the current year. The company has decided to convert some of its big-screen LCD production lines into mobile LCDs as it tries to reassert its dwindling display business. It's yet more bad news after the company sold part of its LCD manufacturing business to Hon Hai, Sony withdrew from a joint venture and refused to deal with Sharp in the future, plus an 86 percent collapse in profits.

Continue reading Sharp posts $1.4 billion extraordinary loss, refocuses on mobile displays

Sharp posts $1.4 billion extraordinary loss, refocuses on mobile displays originally appeared on Engadget on Fri, 27 Apr 2012 04:20:00 EDT. Please see our terms for use of feeds.

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