The Ghost City of iPhone: From 300,000 Workers to a Silent Reminder of the Past

The SCMP reports that the world’s largest iPhone factory in Zhengzhou, China, has introduced higher bonuses to attract workers in preparation for the peak season before Apple’s new phone launch. However, according to those who work there and labor agents, “it’s not what it used to be.”

The Foxconn Technology Group complex in Zhengzhou, the capital of Henan province, is closely watched as a barometer of whether China can maintain its role in the global supply chain.

A recent visit to the site revealed that the factory has lost some of its momentum as its major client, Apple, has shifted production to countries like India. According to locals, the severe disruption in late 2022 when thousands of Foxconn workers left the factory due to stringent Covid-19 control measures also dealt a heavy blow to the factory’s role.

Many workers, recruitment companies, and small business owners told the SCMP that the number of workers (which used to be nearly 300,000 during peak seasons) has significantly decreased since the unrest in 2022, causing Apple to warn of delays in iPhone deliveries for that year’s Christmas season.

Foxconn does not currently disclose details about its output and the number of current employees in Zhengzhou.

In a statement sent to the SCMP on Tuesday, the company said it had invested heavily in automation and digitization, which helped “improve efficiency and yield,” while adding that “quality, not just quantity, of employment is an important measure to maintain competitiveness and enhance the value chain.”

A man with the surname Gao, in his 50s, said he now earns about 200 yuan per day ($28) by ferrying workers with an electric tricycle. However, this is only half of what he used to make before the unrest.

A man with the surname Ye, who worked at the factory in 2022, said, “Foxconn is not what it used to be,” adding that the streets are now much quieter. After fleeing the factory during the 2022 unrest, Ye returned earlier this month and received a bonus of 7,500 yuan ($1,047) for three months of work, in addition to a monthly salary of 2,100 yuan. Ye said he was tempted by the bonus, often offered by Foxconn during peak production seasons.

According to recruitment advertisements posted by recruitment companies, the bonus has been increased to 6,000 yuan in early July from 4,000 yuan offered in March. For temporary workers, their hourly wages have increased to 25 yuan from 24 yuan in July and 22 yuan in March.

A recruitment agent with the surname Zhang said production in Zhengzhou is becoming less busy as Apple has shifted labor-intensive jobs to India.

Foxconn has been rapidly expanding its presence in India. Last week, company chairman Liu Young-way met with Indian Prime Minister Narendra Modi, announcing new investment plans. According to DigiTimes Research, the South Asian nation is expected to handle up to 50% of total iPhone production by 2027. The impact is already visible in the official data. The total number of smartphones exported from Zhengzhou dropped by more than 47% to 1.4 million units in the first half.

Despite the supply chain moves, Foxconn remains committed to Zhengzhou. About 40 km from the iPhone production hub, the company’s “new business headquarters” is under construction. The 70,000-square-meter site, costing 1 billion yuan, will be responsible for new fields, including electric vehicles, semiconductors, and robots.

When the Foxconn chairman visited Zhengzhou in July, he said the company “highly values cooperation with Henan” and promised to “continue to deepen roots” in the province.

Source: SCMP