Foxconn planning a billion-dollar factory in Indonesia, creating a million jobs

By , Jul 18, 2012

Apple’s contract assembler Foxcon, also known as Hon Hai Precision Industry Company, is planning a brand spanking new manufacturing facility in Indonesia said to be worth one billion dollars. It will assumably help Foxconn churn out more iPhones, iPads and iPods.

The new plant will come in addition to Foxconn’s manufacturing sites in China’s Chengdu province and Brazil, where some of iPad and iPhone production could move in the future. The Indonesia facility will create approximately one million new jobs in the region where the average monthly wage is a hundred bucks a month…

Matthew Handrahan, reporting for GamesIndustry:

In a statement released yesterday, the company says it was attracted to Indonesia over Malaysia and Vietnam due to its high rate of economic growth – around 6 per cent a year. It also noted that the region is “sorely in need” of formal jobs, giving it a large workforce used to wages of around $100 a month.

And here’s a statement Foxconn issued to the media:

We are looking forward to establish a new manufacturing plant in Indonesia, although nothing is finalised yet.

This will help us in manufacturing good quality products and make them available in the markets at lower prices.

With this, Indonesians will also get better employment opportunities. We will continue our efforts in establishing more manufacturing plants across the globe.

Though Foxconn never mentions Apple by name, it is most likely building a new plant to meet rising demand for Apple’s mobile products as the company is moving tens of millions of iOS devices across the globe each month.

The Indonesia facility could also be for a rumored Apple television set, though that’s just a vague assumption. Besides, Foxconn would want to assemble the Apple HD TV set in Shenzen, close to where suppliers of components are.

The company recently acquired a stake in Japan’s electronics giant Sharp. Foxconn and Sharp now jointly run Sharp’s cutting-edge IGZO display plant in Osaka, Japan.

Foxconn CEO Terry Gou went recently on the record to say it was his company’s intention to beat Samsung Display on clearness though some speculate Foxconn is acquiring display making capability as part of preparations to manufacture the iTV.

What do you think this new plant will be for?

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  • http://twitter.com/therealjdizzle Jason Masters

    They tuuuuk our jobs!!!!!

    • http://www.facebook.com/manuel.perez.12914 Manuel Perez

      They should have factories in Europe , they might even sell more.

      • http://www.facebook.com/profile.php?id=1595420643 Simche Apple Konstantinovic

        Exactly my thought! But I don’t think 100$ a month, is enough to survive in Europe haha…

  • http://twitter.com/kingamoon King

    Maybe Apple should open a small plant here in the US just as a token of appreciation for its number one customer. I’m pretty sure they can afford it.

  • http://twitter.com/sxvs Hets

    Most of Indonesians can’t afford the devices / apple products, at least let them have the factory. 

    • http://www.facebook.com/willytbk Willy Ng

      that was harsh man ! although apple’s market share in Indonesia is small, but we are growing ! just look at how many apple official resellers over here and people queue-ing to purchase iPad and MacBook !

  • http://twitter.com/rickz97 Ricky

    I am very sure thatthis will not happen issues will stop this from happening

  • Iqbal Raharto

    nice step foxconn !