BEIJING - TAIWAN high-tech giant Foxconn plans to shift part of its production of Apple gadgets to other parts of the country as it faces rising labour costs, reports said yesterday.
The planned relocation, aimed at containing rising costs, also indicates a move by labour-intensive manufacturers out of prosperous coastal regions, reported Global Times.
The Financial Times, citing unnamed executives, said yesterday that Foxconn will move some production from its long- time manufacturing hub in Shenzhen to northern Tianjin and central Henan province.
The city government of Hebi in Henan said in a notice seen yesterday the company plans to recruit some 300,000 workers for a new plant which is to be located in Hebi, reported Associated Press.
The cost of living in Henan and other inland provinces tends to be lower than in Shenzhen, where the minimum wage will be raised by 15.8 per cent to 1,100 yuan (S$225) next month.
Henan's minimum wage will be 800 yuan per month as of July 1 and the minimum wage in Tianjin is 920 yuan.
