Follow Slashdot blog updates by subscribing to our blog RSS feed

 



Forgot your password?
typodupeerror
Businesses Cellphones China Technology

Chinese Tech Companies Building Factories In India 104

jfruh writes: Over the past two decades, China's relatively high skill, low cost workforce made the country a powerhouse of tech and electronics manufacturing. But in a sign that things might be changing, several large Chinese companies, including Foxconn and Huawei, are investing billions to start manufacturing in India. Xiaomi is expected to announce its first India-made phone today, as well. The article says that Foxconn's planned factory in Maharashtra "would create employment for at least 50,000 people, state chief minister Devendra Fadnavis said after the signing of the agreement at which Foxconn CEO Terry Gou was present."
This discussion has been archived. No new comments can be posted.

Chinese Tech Companies Building Factories In India

Comments Filter:
  • by Anonymous Coward on Monday August 10, 2015 @07:06AM (#50283533)

    Foxconn is a Taiwanese multinational headquartered in New Taipei, Taiwan.
    https://en.wikipedia.org/wiki/Foxconn

  • I don't think that they will find Indian workers as malleable, conformist and submissive as Chinese - the ostensible reason* why so much manufacturing was moved to China in the first place.

    * Along with low wages - a related characteristc anyway.
    • maximum of US$1.15 per hour,

    • by TheRaven64 ( 641858 ) on Monday August 10, 2015 @07:20AM (#50283575) Journal
      Foxconn is increasingly using mostly automated factories, so the cost of labour is less important. I suspect that the 50,000 jobs was part of a briefing that said 'similar factories that we've built of this size employ 50,000 people' and forget to mention that this one will use fully automated production lines and will employ 50 people. The main requirements are reliable power, easy access to materials and components, good distribution routes for the final product, and lax environmental regulation (if the surroundings are uninhabitable at the end of the operating life of the factory, that's fine - they're building a new one anyway, may as well build it somewhere else...).
      • Since the summary is about "Chinese Tech Companies" and the first company mentioned is Foxconn, it should be noted that Foxconn is not a Chinese Tech Company. They are Taiwanese.

        • by Anonymous Coward

          Well, according to both the People's Republic of China [wikipedia.org] and Republic of China [wikipedia.org], Taiwan is part of China. They merely disagree where legitimate government currently resides (ie Taipei vs Beijing).

          Therefore, it's perfectly legitimate to call Foxconn a Chinese tech company.

          • No, they're Taiwanese. Only three things could make it Chinese.

            1. Foxconn moves to, or is sold off to China.
            2. Taiwan re-unifies with China under its own volition via diplomatic agreement.
            3. WAR! China takes Taiwan.

            • War is merely the continuation of diplomacy by other means. - Clausewitz.

            • No, they're Taiwanese. Only three things could make it Chinese.

              1. Foxconn moves to, or is sold off to China. 2. Taiwan re-unifies with China under its own volition via diplomatic agreement. 3. WAR! China takes Taiwan.

              Except that their name is the Republic of China. We just happen to call the country Taiwan. I'm not at all certain about this, but I believe we call it Taiwan to avoid confusion and because the Peoples Republic of China does not really want anyone calling the RoC anything that has to do with China.

    • by Anonymous Coward on Monday August 10, 2015 @07:32AM (#50283597)

      Anybody is malleable, conformist and submissive when the best hope of eating and keeping a roof over your immediate+extended family is with the big manufacturing corporation. It happens everywhere, it's not exclusive to cultures where it is expected to submit to authority and your elders.

      • Anybody is malleable, conformist and submissive when [it's] the best hope of eating and keeping a roof over your i.. family

        Only until they smell the potential for more money.

    • by rmdingler ( 1955220 ) on Monday August 10, 2015 @07:41AM (#50283629) Journal
      Cheap labor remains an important consideration when moving manufacturing facilities.

      But. Africa. Regional political unrest can undermine labor costs, raw material availability, and friendly tax packages.

      For the next industrial emigration, manufacturers are going to want cheap and easy.

      • by OzPeter ( 195038 )

        Cheap labor remains an important consideration when moving manufacturing facilities.

        But. Africa. Regional political unrest can undermine labor costs, raw material availability, and friendly tax packages.

        On the other hand China has been investing in Africa (First link from google China Is Besting the U.S. in Africa [usnews.com]). So China is already playing a long game there and while India may be a good choice right now, they may be looking at Africa after that.

      • But. Africa. Regional political unrest can undermine labor costs

        China has plenty of weapons and military advisers to send to Africa to prop up the regime of their choice. Even troops, if necessary. Any rebels won't have a chance against a government backed up by the Chinese.

        • by johanw ( 1001493 )

          If the opposition / rebels / terrorists (*) are backed up by the Americans the resulting proxy war will chase all manufacturers away.

          (*) pick one, depending on your preference.

        • But. Africa. Regional political unrest can undermine labor costs

          China has plenty of weapons and military advisers to send to Africa to prop up the regime of their choice. Even troops, if necessary. Any rebels won't have a chance against a government backed up by the Chinese.

          See, they are getting more American every day! Give them another fifteen years, and they'll be the ones invading the middle east.

        • But. Africa. Regional political unrest can undermine labor costs

          China has plenty of weapons and military advisers to send to Africa to prop up the regime of their choice. Even troops, if necessary

          You guys are projecting what you guys and your ancestors have been doing in Asia, South America and Africa, for the past 2 centuries, into China?

          It's like pedophiles always wary their own children gotten raped by others

          Oh, what irony!

          • It's reasonable to assume that similar mindsets and similar motivations will lead to similar outcomes. I expect the Chinese to be absolutely no different, and in many ways, far worse.

            From my dealings with Mainland Chinese, there is no word in their language for "finesse". And they are greedy and vulgar beyond belief

            Africa has a chip of their shoulder about the white devil and his imperialist ways? They've seen NOTHING yet. But hey -- some people deserve to learn the hard way. Hope I live long enough to see

    • by gatkinso ( 15975 )

      If your read the article you will see that Chinese workers are not as malleable and conformist as they once were, and are now demanding more pay.

      • If your read the article you will see that Chinese workers are not as malleable and conformist as they once were, and are now demanding more pay.

        I've been reading history and I see that corporations take their show all over the world to the place where they can fool the locals into taking the least possible pay. They put up factories and pump money and pollution into one spot until the people smarten up, and then they move on to somewhere else. 100 years ago they put up factories in the Northeast US, dumped pollution into the rivers, and built enormous factories. Now the jobs are gone but the pollution and the dead factories remain behind. I'm

    • yes, but the chances of the Indian Government coming in and competing with unfair advantages (like forced labor), as has happened in China, makes those costs worth it, at least from a business continuity standpoint.

      If a natural, or government, crisis hits either company, the likelihood of both sites going down is slim.

  • It might work out (Score:5, Interesting)

    by 140Mandak262Jamuna ( 970587 ) on Monday August 10, 2015 @08:07AM (#50283737) Journal
    Indian manufacturing sector is perpetually troubled by labor union activism. Two states in India (Kerala and West Bengal) have been electing communists to power for decades. In fact these governments are probably the only ones in the whole world where the Communists have taken power by democratic elections and held on to them by elections.

    The labor is extremely powerful in factories. One simple personal anecdote, a worker was drilling holes in the wind tunnel model for me to mount the sensors. Did a 9.9 mm hole, and had mounted the 10mm reamer bit in the machine. He had one hole to finish when the siren sounded for tea time, he walked off! I was standing by him and asked him to just finish the last hole, (move the handle once down like in a slot machine, that was all that was pending) he was upset by that request, and refused to finish that job for three weeks. No other worker would touch the machine, other drilling jobs were piling up. I was a very fresh rookie at that time. I did not even had the perception to understand he was waiting for me to apologize for the affront. I would have readily done it if I had known it. No one clued me in on it too. They were all having fun watching me running from pillar to post to get the model to the four-foot tunnel. No one dared to order a worker to finish the job.

    There are other stories of workers deliberately opening the autoclave some 24 hours into the cycle, corrupting the tempering process of all the pieces inside. They were aircraft parts, all of them had to be scrapped. Loss of almost a million rupees. A foreman was injured in a shop floor. Ambulance could not reach the location. They had a battery truck. But the workers would not let it be used to transport the guy. Why? foremen belong to the "management"! It is that bad there.

    But almost all the unions are controlled by the communists, and China being nominally communist, they may be able to sway the leadership. Also communist party leaders in India have a reputation of being above bribery etc. But the reality was that USSR would give their children scholarships to study in Soviet universities and use their publication (Mir publications, New Century Bookhouse etc) arms to pay them for books that never sell. My cousins have audited the inventory of millions of unsold books being eaten by moths in warehouses.

    So given the money China has and the nominal communist government it has, it could bribe the union leaders the way USSR did. It could have factories with much less labor trouble.

    So it could work out for China the way it would never work out for USA or European companies.

    • Re:It might work out (Score:5, Interesting)

      by Moridineas ( 213502 ) on Monday August 10, 2015 @08:25AM (#50283801) Journal

      The labor is extremely powerful in factories. One simple personal anecdote, a worker was drilling holes in the wind tunnel model for me to mount the sensors. Did a 9.9 mm hole, and had mounted the 10mm reamer bit in the machine. He had one hole to finish when the siren sounded for tea time, he walked off! I was standing by him and asked him to just finish the last hole, (move the handle once down like in a slot machine, that was all that was pending) he was upset by that request, and refused to finish that job for three weeks. No other worker would touch the machine, other drilling jobs were piling up. I was a very fresh rookie at that time. I did not even had the perception to understand he was waiting for me to apologize for the affront. I would have readily done it if I had known it. No one clued me in on it too. They were all having fun watching me running from pillar to post to get the model to the four-foot tunnel. No one dared to order a worker to finish the job.

      There are other stories of workers deliberately opening the autoclave some 24 hours into the cycle, corrupting the tempering process of all the pieces inside. They were aircraft parts, all of them had to be scrapped. Loss of almost a million rupees. A foreman was injured in a shop floor. Ambulance could not reach the location. They had a battery truck. But the workers would not let it be used to transport the guy. Why? foremen belong to the "management"! It is that bad there.

      Very interesting stories. My father's family worked in factories in Ohio/West Virginia/Kentucky area for several generations, and they were all union. He has very similar stories about people sabotaging the line, crashing a lift to cause an incident to get a break, etc. There's no doubt unions have done a ton of good, but that type of action just doesn't sit well for most Americans.

      From my own experience, about 20 years ago I was setting up an exhibit at a tradeshow in New York. Most of the exhibitors were big companies who paid for union labor to put together their displays. I was a one person operation and had one tiny booth in a large hall with one table covered by a tablecloth. All I had to do was drape the tablecloth and set up my flyers and inventory--nothing elaborate. The table I had ordered from the convention service was at an angle near the entrance to the booth. I started to move the table towards the back of the booth--about six feet total--and you would have thought I was starting a nuclear war. Several of the union staff ran over yelling that I wasn't allowed to move anything and I had to wait for an authorized laborer to move the table for me. I had to wait over two hours until the floor boss had someone come over and move my table five feet. Like you, I had no idea what I had done and was baffled by the response. I could have been out of there in ten minutes if I had flipped them some cash...

      Having gone to many tradeshows across the country since then, the convention handling unions have been greatly reduced over the last 20 years.

      • by eth1 ( 94901 )

        From my own experience, about 20 years ago I was setting up an exhibit at a tradeshow in New York. Most of the exhibitors were big companies who paid for union labor to put together their displays. I was a one person operation and had one tiny booth in a large hall with one table covered by a tablecloth. All I had to do was drape the tablecloth and set up my flyers and inventory--nothing elaborate. The table I had ordered from the convention service was at an angle near the entrance to the booth. I started to move the table towards the back of the booth--about six feet total--and you would have thought I was starting a nuclear war. Several of the union staff ran over yelling that I wasn't allowed to move anything and I had to wait for an authorized laborer to move the table for me. I had to wait over two hours until the floor boss had someone come over and move my table five feet. Like you, I had no idea what I had done and was baffled by the response. I could have been out of there in ten minutes if I had flipped them some cash...

        Having gone to many tradeshows across the country since then, the convention handling unions have been greatly reduced over the last 20 years.

        I would have told them to move it now of fsck off and complain to someone who cares. Seriously, I've never understood what they can do other than complain at you. Assault you to keep you from moving it? I'd love that. The lawsuit would bankrupt the union. Maybe there's something in the agreement you signed to have a booth there, but if not...

        • by Zak3056 ( 69287 )

          I would have told them to move it now of fsck off and complain to someone who cares. Seriously, I've never understood what they can do other than complain at you. Assault you to keep you from moving it? I'd love that. The lawsuit would bankrupt the union. Maybe there's something in the agreement you signed to have a booth there, but if not...

          No, they would assault you after the fact. There are some unions out there that are a positive influence (IBEW springs to mind) and some that are negative, and some that are absolute thugs. Teamsters[1] tend to fall into the latter category.

          [1]- By no means do I mean to imply that all Teamsters are thugs, but their leadership tends heavily in that direction, and that leadership ALWAYS has a ready supply of people to do the dirty work.

        • by sjames ( 1099 )

          Next morning you come in and mysteriously, the roof leaked right over your booth and nowhere else, and of course the lights are out. Don't worry, they'll get someone right on that, shouldn't be more than 2 or 3 days.

      • From my own experience, about 20 years ago I was setting up an exhibit at a tradeshow in New York. Most of the exhibitors were big companies who paid for union labor to put together their displays. I was a one person operation and had one tiny booth in a large hall with one table covered by a tablecloth. All I had to do was drape the tablecloth and set up my flyers and inventory--nothing elaborate. The table I had ordered from the convention service was at an angle near the entrance to the booth. I started to move the table towards the back of the booth--about six feet total--and you would have thought I was starting a nuclear war. Several of the union staff ran over yelling that I wasn't allowed to move anything and I had to wait for an authorized laborer to move the table for me. I had to wait over two hours until the floor boss had someone come over and move my table five feet. Like you, I had no idea what I had done and was baffled by the response. I could have been out of there in ten minutes if I had flipped them some cash...

        Maybe I'm just a dirty commie that doesn't want to think anything bad about unions, but my first thought was that the people running the convention were scared by the liability threat. If you even pulled a muscle while moving the table, they might end up facing a multi-million dollar lawsuit.

        • No, it's not that. It's a union doing what a union does best: protecting its own power. They long ago stopped representing workers. It's not 1920 any more, comrade. Wake up. In 1956 Khrushchev made an important speech that you need to listen to to become up to date on current events.
      • by Ogive17 ( 691899 ) on Monday August 10, 2015 @11:55AM (#50285581)
        I former co-worker told me a story from his first week in a union shop (he was non-union). Walking the floor, he noticed a screw was a bit loose on a panel, so he grabbed a screw driver to fix it. He got yelled out because maintenance was a union responsibility. Two weeks later, the screw was still loose.

        I'm not anti-union. I'm anti-dumbassness. The reason so many people are tired of unions is because shit like this. The desire to work to make the company successful is completely gone in union shops, it's just show up, do the bare minimum and collect a paycheck. (not saying this about all unions, but UAW is notoriously bad).
    • Strong support for unions seems natural in a country where pay is low and the factory you are working in might spontaneously collapse at any moment.

      • by Anonymous Coward

        Support for unions should be natural in any country. Here in the US we pop off unproven anecdotes to justify why unions are bad to ourselves while ignoring the massive number of shady and illegal things corporations and other businesses do on a routine basis.

        Heaven forbid workers ever get together for anything. I'm a special snowflake and I'll emerge victorious from a highly imbalanced negotiating position! People like that don't even know much they're being screwed..

        • by Anonymous Coward

          Unions are good, but not when they get special protections.
          For instance, factory workers should be allowed to organize and strike for bargaining and whatever.
          But management should be allowed to fire every single one of them and replace with non-union workers.
          Unions were made to strengthen workers bargaining position.
          But by taking away managements bargaining power the whole thing becomes one sided and companies can't compete.

          • the whole thing becomes one sided and companies can't compete.

            But management should be allowed to fire every single one of them and replace with non-union workers.

            yeah, how soon we forget that we do all this stuff to enrich coroporations, screw the people if they don't want to play along

    • Re:It might work out (Score:4, Interesting)

      by Theovon ( 109752 ) on Monday August 10, 2015 @08:33AM (#50283839)

      I could be misinterpreting, but I teach a lot of masters students from India and China. The Indians in particular seem to have a massive entitlement complex. In particular, they feel entitled to cheat with impunity. I'll give an assignment with an old problem I borrowed from a previous year, but with the numbers changed. Six of them will turn in exactly the same assignment, with exactly the same formatting, with all of the wrong answers, because they copied the older question's answer without even bothering to look at it. And then they get angry when they get a zero for the assignment. This semester, I'm going to just fail the cheaters out completely. (With ample and repeated warning about the rules, of course.)

      • by johanw ( 1001493 )

        Hmmm. I remember having an astrophysics teacher who gave each student the same problems for examination, year after year. When I presented my solutions neatly LaTeX formatted (that was not common then) he was quite unhappy because this would be a good starting point for others to copy the answers from. I did get a good grade but now he had to put much more work in exam questions.

      • I could be misinterpreting, but I teach a lot of masters students from India and China. The Indians in particular seem to have a massive entitlement complex. In particular, they feel entitled to cheat with impunity. I'll give an assignment with an old problem I borrowed from a previous year, but with the numbers changed. Six of them will turn in exactly the same assignment, with exactly the same formatting, with all of the wrong answers, because they copied the older question's answer without even bothering to look at it. And then they get angry when they get a zero for the assignment. This semester, I'm going to just fail the cheaters out completely. (With ample and repeated warning about the rules, of course.)

        I saw the same thing when I was working on my bachelor's degree. I had one class where over half the students were from India. They would loudly and quite obviously exchange answers in their native language DURING exams. The teacher asked them to be quiet. They persisted. He brought in a proctor to try and help manage them. Didn't even phase them. For the final, the teacher made a special exam just for that section. The exam was so difficult, and such a large portion of the total grade that everyone

      • It is difficult for American professors to tell which Indian schools are good and which are bad. Students from the bad schools cheat and earn a bad name for the ones from good schools. The ones from the good schools in 1980s and 90s and early 2000s worked well, and earned good reputation and goodwill. That is being squandered by the new comers from less than stellar institutions.

        You go ahead and fail all cheating students. At least they will stop registering to classes offered by you. Good riddance. I was

        • by rfengr ( 910026 )
          They cheated right in the middle of a test in grad school DSP class in the USA. The prof leave for 1 minute and this gal asks another for the answer; in English no less.
      • Then, I think you are unlucky to get those below average students. FYI- 46% employees in Microsoft are Indian, 24% Google and same in Facebook. Not all are same so generalization in this category it self =False. :-)
    • Why did you move from Mandak to Jam?
  • In a few years China will be building companies in the USA due to it's cheap labor
    • by johanw ( 1001493 )

      Well, at least the infrastructure for companies to buy politicians is already in place and works much better than in China.

    • by gatkinso ( 15975 )

      Too many unions in the USA - which is why the jobs went to China in the first place.

      • Too many unions in the USA - which is why the jobs went to China in the first place.

        corporations in the US are tired of paying for worker's health insurance, they go to other countries where the government pays for it

    • by Ogive17 ( 691899 )
      Fuyao (they do automotive glass, possibly other stuff) opened up a production facility near by at a former Delphi location.

      An aquaintence quit her job and began working there in quality control. She said the Chinese management staff is going to drive that place into the ground, they don't understand American workers are not going to put up with the same abuse factory workers in China occasionally face.
  • They are a Taiwanese company and this is hardly the first factory they have opened outside mainland China. They have factories in South America, Mexico, Eastern Europe, USA, India, etc. I would contend they have little allegiance to mainland China and are more than willing to pull up stakes if need be.

  • Foxconn's planned factory in Maharashtra "would create employment for at least 50,000 people,

    I think he meant "enslave 50,000 people who voluntarily leave their dirt floor shack and move into an apartment in the city and start getting fat".

    The enemy isn't buiness. It is sweet, tender nature that demands you put food in your mouth

  • Tax Corporate Revenues, Not Profits;
    We're paying Income Tax on our Salaries, not our Savings
    wh.gov/ijhBs

  • I hear you like outsourcing...

"How many teamsters does it take to screw in a light bulb?" "FIFTEEN!! YOU GOT A PROBLEM WITH THAT?"

Working...