The gigantic Foxconn concern produces everything from Apple’s products, notebooks for others, motherboard components, routers, consoles and much else, At the end of 2010 Hon Hai/Foxconn had 920,000 employees, which has made it impossible to make quick decisions.
Foxconn is largely a company that makes products for other companies that develop the product in question and have grown big doing so. Currently there is a Foxconn product in practically all households, but to able to continue to grow and remain profitable the company will divide into several smaller companies.
The board will divide the company in steps and it will start with a spin-off of the touch screen manufacturing and digital cameras. The new company will still be wholly owned by Hon Hai, but will have a separate administration with a manufacturing line without connections to Foxconn. This will lead to improved efficiency and the possibility to operate more aggressively against other touch screen and digital camera makers.
The same model will be will be applied to other parts of Hon Hai during a transition period. How this will affect its customers, e.g. Apple, ASUS, Intel, Dell, Nintendo, Microsoft, Sony Ericsson and others are uncertain, but most likely not at all.
Source: TheChinaPost
