Taiwan's Economy
Foxconn and Contract Manufacturing
How Foxconn, founded by Terry Gou, became the world's largest electronics contract manufacturer by assembling iPhones and other devices, and its expansion into India.
Foxconn (Hon Hai Precision) is the world’s largest electronics contract manufacturer.
Origins
Founded by Terry Gou in 1974 in Taiwan, making plastic parts for TVs.
Contract manufacturing
- Foxconn assembles devices for brands like Apple, Dell, Sony and others.
- Brands design and market; Foxconn manufactures.
Scale
- Giant factory campuses in China, like Zhengzhou (“iPhone City”), employed hundreds of thousands at peak.
Labour concerns
A series of worker suicides at Shenzhen factories in 2010 drew attention to working conditions; Foxconn raised wages and installed safety nets.
India expansion
- Foxconn assembles iPhones near Chennai (Sriperumbudur) and has expanded in Karnataka and Telangana.
- India’s share of iPhone production grew rapidly in 2023-25.
AI servers
Foxconn now makes AI servers, a fast-growing business.
Lesson
Contract manufacturing lets brands focus on design while manufacturers achieve scale.
An iPhone sold in India or exported to the US may be assembled at Foxconn's plant near Chennai.
Contract manufacturers like Foxconn assemble them.
- Foxconn is the largest electronics contract manufacturer.
- It assembles devices for Apple and others.
- Labour concerns rose after 2010 suicides.
- Foxconn expanded iPhone production in India.
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