Posted on 08/08/2015 8:04:09 AM PDT by TigerLikesRooster
Foxconn Plans to Spend $5 Billion on Factories in India’s Maharashtra State
Taiwanese electronics manufacturer signs MOU as a ‘first step,’ says state government official
By Sean McLain
Updated Aug. 8, 2015 10:27 a.m. ET
2 COMMENTS
NEW DELHI—Taiwanese electronics manufacturer Foxconn plans to spend $5 billion dollars on factories, and research and development in the western Indian state of Maharashtra, according to a state official.
Foxconn, the world’s largest contract electronics manufacturer by revenue, signed a memorandum of understanding Saturday with Maharashtra to invest the money in coming years on operations that would employ 50,000 people, said Subash Desai, Maharashtra’s industries minister.
The agreement “outlines significant investments that Foxconn intends to make in the next five years,” Foxconn said in a statement. The company—known officially as Hon Hai Precision Industry Co. —makes products including Apple Inc. iPhones, Xiaomi Corp. smartphones and Samsung Electronics Co. tablets.
(Excerpt) Read more at wsj.com ...
P!
Work em 12-14 hours a day for under $2.50...bingo...profit. No wonder 20 million want to come here.
Or is China starting to throw them out, having pilfered everything worth copying?
So Apple is going to move some of their slave labor camps to India?
That kind of manufacturing is almost always a big step up for developing countries and their populations. There is also a natural curve where the workforce becomes more skilled over time and commands higher pay. Low-cost producers then move on to new developing areas to build new low-cost facilities.
This overall trend of globalization has lifted something like a billion people out of poverty in the last decade or two. I’m glad to see it.
So what happens to the area after the locusts have left?
They can do better paid work—or their salaries would slip back down to make them otherwise competitive again.
The free market is a marvelous thing.
operations that would employ 50,000 people, said Subash Desai, Maharashtra’s industries minister.
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Payroll expense - $50,000 per day.
Two very good questions!
Manufacturing pay in India runs to @$5/day on average, about 2x average pay, which is of course brought down by so much ill paid agricultural labor. Manufacturing is better paid. Much higher in a few places like Bangalore.
Maharashtra is a big industrial state (Bombay/Mumbai) so I expect wages would be in line with my estimate. In a poor undeveloped state wages would be lower.
Will your children or grandchildren be attending Burger King U.?
“Will your children or grandchildren be attending Burger King U.?”
Nope. Mexicans illegals will.
No—but my parents and grandparents weren’t unskilled factory workers, either.
They can do better paid work—What makes you think they wouldn't be doing better paid work now if they could?
This overall trend of globalization has lifted something like a billion people out of poverty in the last decade or two. I’m glad to see it.You contradicted yourself with your "let them eat cake" mantra---
or their salaries would slip back down to make them otherwise competitive again.
Huh? i’m not sure why or what you’re trying to argue here. the trend globally is pretty clear. From Japan to Korea to China to Indonesia to Africa and, here, India. Manufacturing finds a pool of low cost labor. After years in the market the labor becomes more skilled and more complex products are manufactured. Eventually salaries rise and companies find new lowest-cost geographies for their manufacturing. Salaries have risen because there is demand for the now skilled workforce.
“Let them eat cake”, like a don’t care a bit about them, doesn’t really match an area that has pulled itself up from abject poverty to higher level and skilled-work wages.
You seem to have the idea that these workers price themselves out of the market and are left worse off than before the industrialization started.
Foxconn plans to spend $5 billion dollars mainly on netting to catch employees as they jump off the factories roof.
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