I recently noted from the Bach Seat that the manufacturer of all things digital, Foxconn was moving production to Brazil from China because of rampant wage inflation. Now it seems that the Taiwanese technology giant has decided that to drop people from production altogether. TechEye reports that Terry Gou, founder, and chairman of Foxconn (2038), told Xinhuanet that the firm will replace up to 1 million people with robots over the next three years.
Mr. Gou told Xinhuanet that Foxconn now has 10,000 robots and the number will be increased to 300,000 next year and 1 million in three years. The manufacturer now has over 1.2 million employees with one million of them based in China.
Mr. Gou told Xinhuanet the robots will replace humans who do simple and routine work such as spraying, welding, and assembling of products for firms such as Apple (AAPL), HP (HPQ), Cisco (CSCO), Dell (DELL), ASUS (2357), Intel (INTC), Microsoft (MSFT), Nintendo (7978) and Sony (SNE).
Foxconn needs to automate more of its manufacturing processes in order to make up for labor shortages and stay ahead of its competitors, said Amy Teng, an analyst with research firm Gartner (IT), told PCWorld.
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Mr. Gou told employees that he wanted to move the company’s workers “higher up the value chain, beyond basic manufacturing work,” according to a company statement cited by PCWorld.
While no one will deny that robots are efficient and they also don’t commit suicide due to harsh working conditions. But as we painfully know here in Detroit, robots create job losses, thus generating unintended consequences throughout the world economy. What could be the unintended consequences of 1 million unemployed Foxconn workers in the Peoples Republic of China?
If political leaders like former Gateway Computers CEO and Michigan Governor Dick Snyder and President Obama were truly interested in creating jobs in Michigan, they would be welcoming this announcement and pushing hard for Foxconn to build its robot factory in Detroit, where land is cheap and skilled robotics technicians cast off by the auto-makers can tend to the Foxconn robots.
iPad4, made in Detroit
Related articles
- Foxconn looks to use robots to replace a million human workers (slashgear.com)
- Foxconn Employees Are Being Replaced By Robot Workers [Foxconn] (gizmodo.com)
- Foxconn Planning To Hire 1 Million Robots (techcrunch.com)
Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn, Facebook, and Twitter. Email the Bach Seat here.