The largest iPhone assembly factory has sharply reduced production

The Foxconn production complex in the city of Zhengzhou, Henan Province, became famous throughout the world in the fall of 2022, when, at the end of the pandemic, local authorities continued to adhere to strict sanitary measures in the area, which led to mass protests by workers. Now, as eyewitnesses note, the once largest iPhone production company no longer shows signs of its former activity.

Image source: Foxconn

At its peak, Foxconn’s Zhengzhou facility, as the South China Morning Post explains, was capable of employing up to 300,000 workers at a time to produce Apple smartphones. How many of them are planned to be hired in light of the September announcement of the new generation iPhone is not specified, but representatives of the SCMP publication who visited the region note a rather low level of population activity on the city streets. Local residents engaged in private transportation noted in interviews with journalists that their earnings have halved since last year. Moreover, even official statistics say that in the first half of the year, Henan province shipped 47% fewer smartphones than a year earlier—only 1.4 million units. To some extent, Foxconn’s decline in iPhone production in Zhengzhou is probably to blame for this.

Local workers are now being offered fairly generous incentive payments, which suggests some labor shortages. The one-time bonus for those willing to work at the enterprise for at least three months in a row exceeds $1,000, while for each month they will receive about $300 of the base salary. As you know, Foxconn this year expects to assemble older iPhone models at its plant in southern India, and this country could take over up to 50% of the global production of Apple smartphones by 2027. For Chinese enterprise contractor companies, this can be a challenge.

Remarkably, Foxconn is building its new headquarters in Henan, which will be responsible for the development of promising businesses such as electric vehicles and robotics, as well as the development of semiconductor components. With a total floor area of ​​approximately 70,000 m2, this building will require approximately $140 million in investment. Foxconn representatives continue to insist that the company has “taken deep roots” in Henan province.