Foxconn, a major Apple partner, has increased wages and bonuses for new workers at its Zhengzhou iPhone factory in China. In a few months, the “Apple” is expected to launch a new generation of iPhone.
According to Foxconn’s official WeChat post, starting May 29, new employees will be rewarded with a maximum of 3,000 yuan (over 9.9 million VND) if they work at least 90 days in the factory, with an hourly wage of 21 yuan (about 70,000 VND). Ex-employees will be rewarded with 500 yuan (1.65 million VND) if they successfully refer candidates.
According to SCMP , Foxconn has increased wages twice this month. For example, the highest bonus for new employees who have worked for at least three months increased to 2,500 yuan (8.2 million VND) on May 22 from 2,000 yuan (6.6 million VND) on May 3.
The Zhengzhou plant is the world's largest iPhone factory, employing up to 200,000 workers during peak season. The wage hikes and bonuses are seen as a move to underscore Foxconn's commitment to iPhone assembly in the city, despite the wave of Apple's supply chain shifting out of China.
While the mainland remains a major manufacturing base, rising labor costs and disruptions from Covid-19 lockdowns in 2022 are expected to force Foxconn to diversify its production base to countries like Vietnam and India. Apple CEO Tim Cook said in February that production disruptions in China in the last two months of last year were a factor in the company’s revenue decline.
Earlier this month, Foxconn Chairman and CEO Liu Young Way visited Chengdu and assured employees that the company has no plans to abandon the city and its important manufacturing base.
In parallel with its operations in China, Foxconn plans to add two new buildings to its iPhone manufacturing facility in Chennai, India, according to The Economic Times . Mr. Liu has met Prime Minister Narendra Modi twice in 2022.
Meanwhile, Tata Group is set to become Apple’s fourth iPhone manufacturer after acquiring Wistron’s plant in southern India. The South Asian nation is expected to assemble up to 50% of iPhones by 2027, up from less than 5% now, according to research firm DigiTimes . That would put it on par with China.
(According to SCMP)
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