Highlights News

Foxconn expands production line, and orders increase due to Huawei

It is said that at present, the production of Huawei-related products in the Foxconn Shenzhen factory has increased. Some workers said that “the unit is expanding its production capacity”.

On July 23, a reporter learned from Foxconn that the overall output value of Foxconn Shenzhen Longhua and Guanlan Park increased by 12% in the second quarter. The company benefitted from the strong growth of domestic customer demand. The output value in June increased by 4% in the same month.

According to the information disclosed by insiders of Foxconn, taking the domestic H brand customers as an example, in the first half of the year, Foxconn’s corporate units increased the output value of the camera and module for the customer by 94% year-on-year, and the output of the whole camera and module components for the customer from May to June. The year-on-year growth was over 15%.

Lenovo has previously determined that the domestic H customer is Huawei. This is because it had been removed from its supply chain system after it could not guarantee production and business continuity. From all aspects of the news, Foxconn should undertake some of Flextronics’ production capacity.

According to Bloomberg data, the top 10 US vendors that received the most revenue from Huawei were Flextronics, Broadcom, Qualcomm, Seagate, Micron, Qorvo, Intel, Skyworks, Corning, and ADI. In 2018, Flextronics received approximately $2.5 billion in revenue from Huawei. According to reports, after being kicked out of the supply chain by Huawei, Flextronics’ factory in Changsha Wangcheng Economic Development Zone has been discontinued.

The reporter also learned from several Foxconn production line workers that the production of Huawei-related products in the Foxconn Shenzhen factory has increased. Compared with before, some workers said that “the unit is expanding its production line”.

Huawei founder Ren Zhengfei was interviewed recently. In 2019, Huawei’s smartphone shipments are expected to reach 270 million units. Last year, Huawei’s smartphone shipments were 206 million units. This means that Huawei mobile phones are expected to maintain rapid growth.

The reporter conducted a verification of the relevant information to the Foxconn public relations department. Foxconn only confirmed the overall output value data of Longhua and Guanlan Park. The company declined to disclose the customer name and related specific business data. Foxconn said, “We will not comment on single customers and brands”.

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