Foxconn said on Thursday a pay-related "technical error" occurred when hiring new recruits at a COVID-hit iPhone factory in China. It apologised to workers after the company was rocked by fresh labour unrest. The factory makes Apple devices including the iPhone 14 Pro and Pro Max, and accounts for 70% of iPhone shipments globally.
Vedanta-Foxconn signed an MoU with the Gujarat government to set up a semiconductor unit. Vedanta-Foxconn would invest Rs 1,54,000 crore to set up the facility in Gujarat. Rs 94,000 crore will go into setting up the display manufacturing unit, while Rs 60,000 crore will be invested in the semiconductor facility.
This comes nearly a week after hundreds of Foxconn workers protested and blocked the crucial Chennai-Bengaluru highway. According to the protestors, there were long-standing issues between the management and the contractual workers, which the management allegedly refused to address or resolve. Nearly 14,000 men and women are employed in the Foxconn unit that manufactures electronic components, iPhones for Apple and handsets for other leading smartphone brands.
Apple aims to begin commercial manufacturing of the iPhone 13 in India in February for both the domestic and export markets. Apple has also secured a supply of semiconductor chips, which has aided the company's expansion strategy to bring manufacturing to India. The iPhone 11 and iPhone 12 are already manufactured at the Foxconn plant in Chennai.
Tamil Nadu is one of the worst-hit states in the second coronavirus wave engulfing India. More than 50 percent of the plant's capacity had been cut, both sources said, declining to be named as they were not authorised to speak to the media. Foxconn similarly said strong smartphone sales contributed to a stronger-than-expected performance in the fourth quarter amid the work-from-home trend.