TOKYO (Reuters) – Nearly 3,000 foreign workers as Sharp Corps subcontractors have been detained in central Japan, says a trade…
TOKYO (Reuters) – Nearly 3,000 foreign workers as Sharp Corps subcontractors have been detained in central Japan, says a trade union when the company moves the production of some sensors to Apple iPhones to a Chinese factory owned by his parent Foxconn.
The news about the move, first reported by Nikkei operations daily, and the redundancies, Sharp Shares dropped 5.7 percent on the Tokyo Stock Exchange. This is compared with the widening Tokyo market decline of 2.4 percent.
The deep employment reductions will come as Japan is debating whether to bring more foreign workers as a result of a local labor shortage and to emphasize how such employment is often detrimental to manufacturers’ production cycles.
A sharp spokesman said the company could not comment on problems with subcontractors.
Sources familiar with the case told Reuters that Foxconn moved the production of sensors used in the Face Detection Function introduced by Apple Inc. in its iPhone X last year.
The sources, which declined to be identified because the decision to move is private did not tell why Taiwan’s Foxconn decided to move production from the Sharp factory to its own factory in China. 19659008] Foxconn said in a statement that the company adheres to a strict business policy to not comment on any questions regarding current or potential customers or any of their products.
In October, Sheriff, Sharp raised his full-year prospects as part of a turn over the ownership of Foxconn.
Osaka-based electronics manufacturers have slashed costs after being overtaken by Foxconn, formally known as Hon Hai Precision Industry Co., Ltd., in 2016, as it is struggling to compete with South Korean rivals in organic LED display technology.
Foxconn, Apple’s largest iPhone installer, is implementing its own restructuring measures aimed at reducing $ 20 billion ($ 2.88 billion) from spending in 2019 as it faces a very difficult and competitive year, Bloomberg reported.
(Reporting of Makiko Yamazaki in Tokyo and Laharee Chatterjee in Bengaluru; Further Reporting by Jess Macy Yu in Taiwan; Editing Shailesh Kuber and Himani Sarkar)