Foxconn formerly known as Hon Hai Precision Industry Co Ltd. announced today that it is optimistic that its facilities in China would return to its normal operations by the end of this month. The company is the major parts supplier and assembler for the Cupertino company and several other tech companies all over the world. Foxconn had its output cut because of the COVID-19 outbreak in China.
Foxconn's Optimistic Prediction
During the company's investors call last Tuesday, Foxconn Chairman Liu Young-way announced that it anticipates the return to a full production capacity of its production facility on China by the end of Mar.2020. Foxconn is stepping up its efforts to return to normal operations after the disruption caused by the COVID-19 outbreak in the region.
The chairman also shared that over 50 percent of its employees have already returned and are currently working normally. Foxconn, however, warned that there are still a lot of uncertainties that prevent it from quantifying the impact of the health crisis for the entire year. But, it is still optimistic that demands would be pushed out in the later part of the year considering that 5G, AI, and semiconductors are crucial catalysts for the long term.
The good news announced by Foxconn is crucial to Apple and its iPhone inventory. The Cupertino tech juggernaut is anticipated to launch this Mar its entry-level iPhone SE 2 or iPhone 9. Ming-Chi Kuo, a reputable Apple tipster, revealed that the production of the low-cost iPhone was affected because of the closures of several Foxconn facilities in Zhengzhou, China.
Foxconn's Current Operation Details
A report from Financial Times recently detailed the current condition at one of the facilities of Foxconn located in Longhua campus in Shenzhen. It is one of the most extensive facilities of the company in the region. According to the site, which got its information from one of the company's employees, staff are currently working under extreme pressure. It appears that the facility is low on workforce but still pushes to achieve its targets.
The employee reportedly revealed to the site that they are currently working seven days a week. At present, they are under the pump because of the shortage of factory workers. It can be recalled earlier that the company offered incentives to returning employees because of low employee turn out. It could also be attributed to local and regional restrictions imposed by the Chinese government in its goal of preventing the spread and solving the health issue in the region.
Foxconn, according to the brokerage firm KGI is currently employing hundreds of thousands of people. The majority of its production capacity is located in mainland China.
