Foxconn has decided that China is too expensive. We knew it had to happen someday. Seriously, Foxconn has decided its Shenzhen factory, which recently saw raises in the wake of a wave of suicides, is too expensive, except for iPhone manufacturing.
The Shenzhen plant, has comprises 11 business groups and employs 300,000 employees will merge with the Guanlan plant, which employs 100,000 workers, according to
a source who works at an R&D department at the Shenzhen plant said.
Interestingly, the Foxconn group will continue building iPhones (and one would presume, iPads) in Shenzhen. Foxconn produces goods for several companies, including Apple, Dell, Nokia, and more.
Foxconn announced on June 1st that wages for workers in Shenzhen would increase to 1,200 yuan ($176) from 900 yuan ($132). The company followed that just a few days later, on June 6th, with a raise to 2,000 yuan ($293) for workers who pass a three-month assessment.
It's true that other locations besides Shenzhen, even outside of Foxconn's own plant, are cheaper. The entire city of Shenzhen plans to raise its minimum monthly wage by 15.8 percent to 1,100 yuan ($161) beginning in July. Meanwhile, the minimum wage in Tianjin and Yantai is 920 yuan ($135), and 900 yuan ($132) in Wuhan.
Aside from the Apple-centric business groups, Foxconn will move workers to the less-expensive Tianjin, Yantai or Wuhan, reported the source. The relocation is planned to be complete within two months.