Foxconn Inland China Push Spurred by Labor, BI Says

Foxconn Technology Group and other electronics makers are saving little in wages by opening plants in inland China and are making the move because of labor shortages in traditional manufacturing hubs, according to Bloomberg Industries.

Apple Inc. supplier Foxconn, which has boosted its China workforce 50 percent in two years to 1.2 million, needs to use employees in more parts of the country to meet demand, Jitendra Waral, a Bloomberg Industries technology analyst, said in a note published today. The labor-cost savings are minimal as wages in western Sichuan province and central Henan, where Foxconn makes iPads and iPhones, are similar to those in coastal Guangdong.