Apple Supplier Foxconn Ditches Workers For Robots

(RTTNews) - Taiwanese electronics assembler Foxconn Technology Group has replaced 60,000 workers at a factory in China with robots, according to a report in the South China Morning Post. However, the company, which is a major supplier to Apple and Samsung, expects to maintain a significant workforce in China.

Foxconn reportedly said it is applying robotics engineering and other innovative manufacturing technologies to replace repetitive tasks previously done by employees. The company expects the move will enable its employees to focus on higher value-added elements in the manufacturing process, such as research and development, process control and quality control.

According to the South China Morning Post report, about 600 companies in the Kunshan region in China's Jiangsu province are looking to cut their workforce with robots in order to cut costs and accelerate growth. Many Taiwanese manufacturers, including Foxconn, have factories in the Kunshan region.

Foxconn, formally known as Hon Hai Precision Industry Co., has been replacing employees with robots as part of its efforts to save money and increase profits. However, the company has also been criticized for inadequate working conditions and high rate of worker suicides at its manufacturing facilities.

More companies are expected to follow Foxconn in replacing workers with robots across the globe as automation is being increasingly adopted by large corporations. Robots have replaced humans in performing repetitive and dangerous tasks.

But there are widespread concerns about the increasing use of robots and their role in society. Robots are being blamed for rising unemployment as they replace workers in increasing numbers of functions.

In June 2015, Chinese e-commerce giant Alibaba Group Holding Ltd. (BABA) and Foxconn said they have agreed to each invest 14.5 billion yen, or $118.3 million, in Japanese mobile carrier SoftBank Corp.'s (SFTBF, SFTBY) robotics business.