According to foreign media reports, Kunshan City, Jiangsu Province is one of China's major electronics manufacturing centers, which is accelerating the strategic transformation of the electronics industry, but this process may cause millions of people to lose their jobs. Apple's foundry company Foxconn recently fired 60,000 workers in the Kunshan factory and replaced them with robots to reduce labor costs.
Kunshan City is attracting a large number of investment from Taiwanese companies and has changed its growth strategy more than a year ago by accelerating growth by replacing workers with robots and encouraging entrepreneurship. Only 35 Taiwanese companies, including Foxconn, invested $610 million last year in artificial intelligence research and development. The Kunshan municipal government said that by introducing robots, Foxconn reduced the number of workers at the Kunshan plant from 110,000 to 50,000, which successfully reduced labor costs. More companies may follow their footsteps.
According to a survey by the Kunshan Municipal Government, as many as 600 companies have planned to introduce machine workers in the near future. There are 4,800 Taiwanese companies in Kunshan, accounting for more than 60% of their GDP. If the automation plan goes well, it could force 2.5 million people to lose their jobs.
In the most prosperous period of manufacturing development in Kunshan, 120 million laptops can be produced each year. However, with the decrease in demand, the current output is only 51 million units. However, the smartphone manufacturing industry is trying to fill this gap to some extent, with a production of about 20 million last year.
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