Chinese newspaper Oriental Daily reports that Hon Hai's chairman, Terry Gou, announced at a shareholder meeting that Foxconn company will be closing its mainland China factories and moving production to Taiwan, where it will increase its robotic assembly lines, and Vietnam and India, where labor is cheaper.

This report follows the recent publicity about factory worker suicides and company promises to double the wages of its lowest paid workers. If this restructuring news is true, hundreds of thousands of Chinese workers face unemployment.

Oriental Daily also reports that the company has suspended death benefits to the families of suicide victims to discourage "pension suicide."

Meanwhile, China Daily is reporting that Foxconn Technology Group is moving hundreds of thousands of non-iPhone workers out of its Shenzhen factory to Tianjin over the next two months. Other business groups will also move to less expensive Tianjin, Yantai or Wuhan. Shenzhen's monthly minimum wage will raise by 15.8 percent to 1,100 yuan ($161) citywide starting in July, while the minimum wage in Tianjin and Yantai is 920 yuan, and 900 yuan in Wuhan. Analysts say that the plan is aimed at reducing costs. iPhone workers will get to stay in Shenzhen and enjoy higher wages.

By: DocMemory
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