The Hard Future Facing Foxconn
The manufacturing giant was one of the greatest beneficiaries of U.S.-China trade. But increasing competition, geopolitical changes, and succession failure all threaten its future.
With an expected revenue of $219 billion in 2022, Foxconn is the 21st largest company in the world by revenue and the largest Taiwanese company.1 Known locally as Hon Hai Precision Industry, it is also the third-largest private employer in the world and the largest private employer in both Taiwan and China with over 826,000 employees.2 Founded in 1974 by Taiwanese businessman Terry Gou, Foxconn is the world’s largest contract manufacturer of electronics. In 2021, Foxconn produced 5.8 billion individual electronic products.3 Holding an estimated 40% of global market share for contract manufacturing of electronics, Foxconn has key partnerships producing smartphones, computers, and other devices for Amazon, Huawei, Dell, Hewlett-Packard, Sony, and, most importantly, Apple.4 In 2013, Apple accounted for 51% of Foxconn’s total revenue.5 Meanwhile, Foxconn has helped make Apple the United States’ most profitable company.6