India COVID-19 Outbreak Slows Foxconn iPhone Output

Reuters reported on the consequences the devastating COVID-19 outbreak in India has had on manufacturing in the country. Foxconn’s iPhone output is significantly down, with plants operating at hugely reduced capacity.

Tamil Nadu is one of the worst hit states in the second coronavirus wave engulfing India. Officials imposed a full lockdown in the state from Monday, closing public transport and shuttering shops, to try slow surging infections. More than 100 Foxconn employees in the state have tested positive for COVID-19 and the company has enforced a no-entry ban at its factory in the capital of Chennai until late May, one of the sources said.” Employees are only allowed to leave but not to enter the facility since yesterday,” the person said. “Only a small part of output is being kept.”

Foxconn Sees 'Stronger Than Expected' Demand Following iPhone 12 Release

Foxconn has seen more demand than it expected following the release of the iPhone 12 range, Reuters reported. It also plans to “push forward” with producing items in Wisconsin.

Foxconn said on Thursday its investment plan did not depend on who the U.S. president was. It was, however, exploring the option of building a new production line there. “We continue to push forward in Wisconsin as planned, but the product has to be in line with the market demand … there could be a change in what product we make there,” Chairman Liu Young-way said at an investor conference. Liu said Foxconn saw “stronger than expected” demand for both smartphones and servers, with strong shipments of Apple’s new iPhone 12 supporting revenue.

Foxconn Moving 155 Jobs From U.S. to Mexico

Key Apple supplier Foxconn is moving 155 jobs from the U.S. to Mexico. They offshored jobs come from a factory located outside of Indianapolis, according to Reuters, who broke the news. It comes alongside continued criticism of the firm for failing to meet its job creation targets in Wisconsin.

The Taiwan-based electronics maker said in a filing in Indiana in November 2018 that it would lay off 155 workers at a computer factory outside Indianapolis, citing “changes in our business and production objectives.” The Labor Department in February determined that the jobs were eliminated because the company had shifted some production to Mexico, records obtained by Reuters through a Freedom of Information Act request show….The company told the Indianapolis Business Journal in November that the plant in Plainfield, Indiana, was operated by a subsidiary firm and added that the layoffs would not affect other Foxconn-related companies.