Foxconn plans to resume 50 percent of its production in mainland China by the end of February and 80 percent in March,media reported. Referring to the actual resumption of work at Foxconn’s factories, Foxconn responded: “The Group’s mainland factories are closely coordinating with the local government’s request to resume work, in accordance with the principle of orderly resumption of work in accordance with the principle of batch work;”
At the same time, each plant resumption process strictly requires legal compliance, with employee safety as the highest principle. The resumption of work in each plant shall be subject to the local government announcement. “From people familiar with the situation, Foxconn’s Zhengzhou and Shenzhen plants in Henan are still not optimistic.
In addition, under the outbreak, when employees return to work is also a question.
On February 15, Zhengzhou Foxconn launched the “Epidemic Return Incentive Award”, which is aimed at iDPBG Zhengzhou employees (excluding sunshine workshop), with a reward of 3000 yuan per person, and the reward policy also details the return time, attendance requirements, and award time.
In the factory return situation is not optimistic, Foxconn so strong to encourage employees to return to work, Foxconn is anxious?
Guo Mingyu, a well-known analyst in the mobile phone industry, recently reported that shipments of iPhones would fall 10 percent to 36 million to 40 million units in the first quarter of 2020. It is understood that Foxconn’s main factory responsible for the assembly of the iPhone is the Zhengzhou and Shenzhen factories in Henan.
All in order to return to work
In order to be able to deliver new iPhone orders on schedule and ensure that the impact of the outbreak on Apple’s new products is minimized, Foxconn is trying to communicate with the relevant domestic authorities for an early resumption of work.
Its internal has long been set up a command center for epidemic prevention, the Group decided that all employees returning from the mainland to Taiwan to temporarily return to the mainland factory area, to work in Taiwan, and from Wuhan returned to Taiwan employees need to continue to stay at home quarantine, no need to attend. As for the mainland factories, temporarily maintain the necessary manpower to stay on duty during the Spring Festival, and unless the local local government otherwise provides, they will be postponed until February 10 to start full-scale resumption of work, while adhering to the park to carry out comprehensive disinfection and epidemic prevention, the deployment of epidemic prevention materials, publichealth needs to be known, and the establishment of staff love observation area.
Although foxconn is scheduled to return to full production on February 10th, it is scheduled to return to work. On February 8th, however, it was reported that Foxconn had said in a notice to employees at its Shenzhen plant that it would not return to work for the time being after the Spring Festival holiday, which extends until February 10. At the same time, Foxconn has taken 14 days of isolation from workers returning from abroad to Zhengzhou, Henan Province.
On the other hand, even if employees return to work, the shortage of protective materials is a problem. Faced with the “difficult to find” situation under the outbreak, Foxconn began to make its own masks. In addition to engaging in medical equipment, protective products enterprises overtime production, emergency expansion of production, BYD, SAIC GM, Zhongshun soft, do cars, do mobile phones, do sanitary napkins / diapers, do solar energy, do suits, also all change line to do masks.
Foxconn recently imported the mask production line for the first time at the Group’s Longhua park, with production capacity expected to reach 2 million per day by the end of February. In addition, Foxconn has built a network of health and epidemic prevention for millions of employees.
In the flow of employee health information, Foxconn relies on the Group’s Incense letter and other internal self-research APP, through the daily online health status declaration of employees, the use of system data analysis processing, real-time grasp of the Group’s employee health dynamics, improve the speed of response to the outbreak.
Not only that, Foxconn also opened its “Fii Cloud Services Developer Center five core services” for 90 days, for other industrial enterprise users online office and collaborative development.
To keep workers safe, Foxconn requires all factory workers to wear masks, conduct temperature tests, and after repeated communication with the relevant authorities, its Zhengzhou plant resumed work on a small scale on February 10, but production capacity was low.
Foxconn in a hurry?
Fifty percent of Apple’s global supply chain is in China, and Foxconn is one of Apple’s leading assemblers. Previously, a number of information suggested that Apple will launch the iPhone SE 2 at its spring launch in 2020, and that the series will be back with the public for years to come.
However, due to the validation of new products, the introduction and testing of new materials and components, new product design decisions, product blueprints and key specification confirmations, apple and suppliers need to work very closely together.
Analyst Guo Mingxuan said in a recent report that the supply side of the iPhone, the demand side will both be hit by the outbreak, so the first quarter of 2020 iPhone shipments forecast, cut by about 10 percent, after the cut shipments are expected to be 36 million to 40 million units.
Earlier, on January 28, U.S. time, Apple’s first-quarter results for the second quarter of fiscal year 2020, Apple CEO Tim Cook said the recent outbreak of new coronavirus pneumonia in China has affected Apple’s business in China to some extent. Apple has restricted travel to China.
In addition to Apple, domestic manufacturers may also be affected. Because from February to March, it is the flagship product release of many domestic manufacturers and the final test ingressoof stage of the prenatal, but also the first half of the planned release of products in the commissioning phase.
Xiaomi 10, for example, was originally scheduled to be released in February, and the main assembly was at Foxconn’s Langfang plant, which recently announced a delay in reopening work. As a result, this presents a severe test of Foxconn’s ability to collaborate and adjust quickly with partners at the supply chain. At present, Xiaomi 10 release has been changed to online release.
For Foxconn, it’s crucial that their plant in Zhengzhou return to work for the first time, because 90 percent of the world’s iPhones are now coming from here.
And for Zhengzhou Foxconn launched the “epidemic prevention back to work incentive award” situation, according to people familiar with the situation, the first day of re-entry in the factory workers are the Spring Festival period to stay on duty, before did receive the notice of February 10 return to work, but soon the factory also informed to let at home and other news, between the workers rumored to be the fastest 17 full resumption of work, But did not receive a clear written notice, coupled with the fear of the outbreak, have no intention of returning to the factory for the time being.
Zhengzhou Foxconn a non-production line logistics department staff said that during the Spring Festival, they stay in the factory, the new crown pneumonia outbreak, the factory used to pick up workers are stopped, left workers have to solve their own commute traffic, after returning to work in the field workers if they want to return to the factory, can not live in the factory dormitory, come back to self-isolation first So the workers who come home for the Spring Festival are watching.
“Although work resumed on February 10th, there are very few workers in the factory. On February 13th, local residents of Foxconn in Zhengzhou said that the number of Foxconn workers in Zhengzhou in 2019 would not exceed 200,000, and the number in the second half of the year was relatively high, and now the entire plant’s administrative and workshop workers add up to more than 1,000 or less.
In addition, industry sources reported that Foxconn is currently in consultation with the relevant government departments to ensure the safety of workers under the premise of trying to determine the shenzhen Foxconn plant as soon as possible to resume work time.