[The story behind Foxconn's new 10 lights-out automated production line] Foxconn is known as Hon Hai Technology Group in Taiwan Province of China. He invested in mainland China in 1988 and is a hi-tech group specializing in the production of 3C products and semiconductor equipment. He is the world's largest electronics manufacturer and has more than 1.2 million employees and the world's top IT customers. In 2013, it ranked 30th among Fortune Global 500 companies.

What is the secret of the success of Foxconn?

Foxconn CEO Terry Gou once summed up Foxconn's success with four key points: fourth-rate talent, third-rate management, second-rate equipment, first-rate customers, that is, find large customers such as Apple, Finland and Nokia, and use China's low-cost and hard-working labor force. However, this successful model may come to an end now, because domestic workers are no longer workers who are free to squeeze.

Another way to solve labor problems is to increase automation and let industrial robots replace labor. Terry Gou said publicly in 2011 that Foxconn will assemble 1 million robots in 2014 and complete the first batch of automated plants in 5 to 10 years. This is the so-called “Million Robot Project”. However, Foxconn's advancement of robots is not as smooth as predicted by Terry Gou. The industrial robots developed by Foxconn still have many problems to be solved. The instability and accuracy of the robots are not very satisfactory. Many complex processes, such as polishing the metal casing of the iPhone, still require manual operation.

How far has Foxconn now automated?

The first stage is station automation, which we can understand as "points." This is to replace people in large numbers and use robots instead of artificial ones to do jobs that people don’t want to do, have no fun, or do dangerous work, such as lathe processing, stamping and grinding, and the working environment is very bad. The first thing we started doing was grinding the robot. After it was developed, it gradually replaced humans, worked in a dust environment, and later started to do stamping robots, gradually replacing manual stamping.

The second stage is the automation of the entire production line. We can understand it as a "line." After optimizing the production line, the use of robots can be reduced.

The third stage is the entire field automation, which can be called “face”. The entire process of production, logistics, testing, etc. can be achieved without humanization or humanization. Now, although smart robots have been used in some parts of the country, the entire field has not yet been automated in most places. Foxconn has already been moving in this direction, including our factory in Chengdu. Now, the Shenzhen and Zhengzhou factories are advancing automation and are in between the second and third phases.

Foxconn's factories in Chengdu, Shenzhen and Zhengzhou have reached the second and third phases. Foxconn already has 10 lights out production lines (fully automated production lines). So far, Foxconn has deployed more than 40,000 "Foxbot" industrial robots developed and produced by the company. Foxconn already has the ability to produce about 10,000 Foxbot robots each year. In addition to industrial robots, Foxconn is also developing medical robots. Although robotics technology is constantly improving, industrial robots cannot completely replace people because people can switch quickly and easily from one task to another.

For many years, Foxconn has been slowly and steadily implementing production automation. The plan is to have the Chinese factory automation rate reach 30% by 2020.

What are the difficulties encountered by Foxconn in the automation process?

People work with machines, there are advantages, there are inappropriate places. Although many of us believe that this is a good practice, we must actually implement it and consider the overall benefits. Factory managers are responsible for production efficiency and management. If managers feel that investing in a large number of automated production facilities will affect the efficiency, then they will not invest in the year when they cannot make money. This is the risk that factory managers need to take. This situation is common in the industry. In addition, automation technology has been applied to assembly for 40 years. Although robot technology has been improving, it cannot completely replace labor. In addition to being assembled, people have a variety of feelings. Therefore, some jobs are cheaper for people than for machines. People are also very flexible and can quickly switch to another job. Robots have no such flexibility.

In the long run, industrial robots cost less than labor. However, the initial investment may be very high, because the robots that can develop various tasks can be expensive, time-consuming and difficult. At present, the cost of human labor in China is much lower than that of robots. But in the face of rising labor costs in the future, Foxconn must transition to full automation before it can remain competitive. To complicate things, governments across China are promoting employment. In Shenzhen, Chengdu and Zhengzhou, the government gave Foxconn various preferential measures to encourage its expansion in the local area. Foxconn hired 1.2 million workers last year and is one of the largest employers in the world. China is the country with the largest number of workers employed by Foxconn. The number of workers reached 1 million. If the Foxconn factory is completely automated, where do these workers go?

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