Foxconn transformation of the way the Internet industry

Foxconn, a controversial business, both “OEM king” known, is much questioned “sweatshops.” 3C products in the foundry process, Foxconn led the Chinese manufacturing industry chain development, to solve the employment problem of tens of thousands of Chinese labor. However, due to limited foundry business profit margins, a large number of front-line workers living space is further squeezed, more than employees jumping events that occur after 2013, leaving a long-term bear Foxconn “sweatshop foundry” infamy. Coupled with the level of economic improvement, rising labor costs, labor-intensive enterprises of cost efficiency is even more urgent. In this context, improve the production environment, improve production efficiency has become the most important task Foxconn. And with the Internet, big data and artificial intelligence at the core of the Internet industry, is considered an important technical means to promote the digital transformation of the manufacturing sector.
Relying on the Internet industry, from low value-added foundry transition to technology-driven production-oriented service enterprises, Foxconn became the most important development strategy. Foxconn transformation of the way of the Internet industry in 2013, Foxconn initially formed the idea of ​​Internet industry. After two years, Foxconn industrial development of the Internet system in selected demonstration production line. In its large manufacturing basis, supporting massive data collection, aggregation, analysis of the service system, the connecting support pan manufacturing resources, elasticity of supply, efficient industrial Internet evolved shaped configuration. 2015, Foxconn will be networking, robotics, artificial intelligence-related business alone split CONTROL ENGINEERING China Copyright , the composition of the industrial Internet business company – Foxconn Industrial Co., Ltd. Internet, referred to as industrial USI. Industrial Farrington chairman Tim Chen said: “Industrial development of the Internet is one of the best ways of 2025 made in China, Foxconn already has the appropriate strength, so things will be split robotics, artificial intelligence-related businesses out of the composition of the Internet industry business conduct on the market. the company is also the direction of development of the internet industry, hoping to market, to keep up with the wave of industrial development. “2017, Foxconn industrial internet platform incorporated into China’s first” industrial internet platform White Paper “, and participate in the development of Chinese internet industry standard platform. June 2018 , industrial Farrington successfully listed on the Shanghai Stock Exchange. After the A share market, industry richWith total market capitalization of close to 400 billion yuan, more than Hikvision, A stock market value has become the number one technology company. Farrington industry will focus on the construction of industrial internet platform, cloud computing and high-performance computing platform, and efficient operation of data centers, communications networks and cloud services equipment, 5G and physical networking interoperability solutions, intelligent manufacturing technology research and development of new applications, intelligent manufacturing industry upgrade, intelligent manufacturing capacity expansion in eight parts business. Among them, the industrial internet platform building project will help data on industrial USI for the edge layer is collected and integrated, by storing transmission and hardware cloud network of integrated virtualization, data and video image classification, segmentation, decomposition, analysis, and then Share to industrial application platform, intelligent factory comprehensive network, cloud, platform, comprehensive building things and objects, machines and machine, fully automated intelligent manufacturing between robots and unmanned factory. In summary, Control Engineering Copyright , the main purpose of industrial Farrington market for industrial Farrington Foxconn Group and the whole industry transition to the Internet to raise funds. Internet industry achieved initial success, despite the obvious internal enabling Internet industry Foxconn intention is to meet the internal demand, but in development practice, Foxconn has accumulated a large number of industrial development of the Internet experience, and promote the Internet industry standards, and began enabling other industries and enterprises . According to public information, industrial USI’s main products includes communications infrastructure, cloud service equipment, precision tools and industrial robots. Wherein the network device comprises a network communication devices, telecommunications equipment, communication network device high-precision structure; cloud service apparatus comprises a high-precision mechanism member servers, storage devices, the cloud service apparatus. In fact, industrial USI’s product matrix is ​​the core of the Internet industry layout: precision tools and industrial robots are the lowest level of production, communication network equipment is the basis of the data collected, the cloud service apparatus is cloud computing services for various industries, data collection, transfer basis, management analysis. Business performance of the three major product matrix to some extent, on behalf of the Internet industry development outcomes. Communication networks and cloud services revenue accounted for the highest total revenue contribution of over 90% in corporate communications network equipment, cloud service equipment, precision tools and industrial robots in three main business, network communications equipment and cloud services revenue accounted equipment than the highest total revenue contribution of over 90%. According to 2018 earnings, industrial USI achieved total revenue of 4,153.78 billion yuan, up byLong 17.16%, owned by the parent company net profit of 16.902 billion yuan, an increase of 6.52%. Wherein the communication network equipment sales of 2,591.54 billion yuan, up 20.82 percent, accounting for the company’s main business income ratio rose from 60.75% to 62.76% in 2017; cloud service equipment sales revenue of 1,532.24 billion yuan, up 27.27%, accounting for company’s main business income ratio rose from 34.10% to 37.11% in 2017. According to the 2018 Annual Report, in the communication network device high-precision parts processing means process by “plant lights” transformation, production capacity by 18%, 84% reduction of human consumption. Main cloud network equipment business group assigned by the Internet within industry can achieve every one million yuan revenue to reduce manufacturing costs by 11%, reduce administrative expenses by 9%. Precision tool and robot internal service-based, Internet-enabled internal industrial automation and intelligence to bear fruit in force to enhance the level of production of industrial robots
2018 Industrial USI. In the automation field, and more production lines introduced automatic split mechanical hand lines, robotic automated welding line automation equipment CONTROL ENGINEERING China Copyright , a dramatic improvement of production efficiency; in intelligent production field, relying on Foxconn industrial cloud platform (Fii cloud), based on the production model of the robot + sensor, developed a robot AI self-perception, self-diagnosis, self-healing, self-optimizing, adaptive function, to achieve higher yields, reduce the cost of waste stage Shenzhen objective “lights out factories” for example, through the transformation control Engineering Copyright , the production line was reduced from 318 staff to 38 staff, production efficiency by 30%, 15% reduction in the inventory cycle. January 2019, industrial USI “flexible assembly operations smart factory” was selected as the Davos World Economic Forum “Lighthouse manufacturing factory”, as the world’s sixteen Industry 4.0 Future a wisdom plant, is the only elected Chinese local enterprises. Internet industry that spreads out, cross-industry application of cross-cutting practice in 2019, “the State Council Government Work Report” specifically mentioned in the Internet industry, clearly states that “build industrial internet platform to expand ‘Smart +’, for the transformation and upgrading of the manufacturing sectorEnergized. “Based on this, in industrial USI” cloud computing, mobile terminals, networking, large data, artificial intelligence, robots and high-speed networks + sophisticated tools “as the core, constructed based sensors, haze cerebellum, FOXCONN cloud ( Fii Cloud) and four industrial internet platform architecture for industrial applications, internet technology has accumulated a number of industrial application cases, including lights-out plant modifications, intelligent rail cutter, smart cities, security, disaster applications such as industrial USI will be “three hard three soft “core internet platform as an industrial base (literally three tools, materials, and equipment; three soft data is a major industrial, industrial artificial intelligence, industrial software) on the basis of industrial 5G with emerging technologies such as the internet and industrial power. Total factor to achieve the factory and on the downstream industry interoperability, continuing to build industry internet platform, and implemented through the external cross-platform, cross-cutting enabling applications. for example, based on independent research and development “fog cerebellum,” Foxconn industrial cloud platform (Fii cloud) industrial Farrington constructed Micro cloud (professional cloud) system, cross-industry Network-enabled product is officially formed. It is 2019 semi-annual report, in the field of construction of smart city, smart city Shanghai industrial construction projects Farrington cooperation with the Oriental Pearl has been achieved Yangpu District, Putuo District, Hongkou District LoRa network-wide coverage, and completed three urban area of ​​the brain platform, has deployed 43 application scenarios, covering security, disaster prevention, fire prevention, anti-fouling, anti-blocking intelligence service and management aspects, like sensor arrangement 30, connecting more than 170,000 induction terminals. Foreign internet industry the amount of help can increase the effect of qualifying ideal at the same time enabling platform for building and industrial USI build an innovative business model of external internet industry energized by the output of Micro cloud (professional cloud) and other cloud-based services, and product services , rapid transformation and upgrading of manufacturing enterprises to solve the problem encountered in the industry with rich experience through internal validation, methods, skills and tools to promote the industry. the rich industrial from Foxconn to change, is actually to an industrial foundry changes in business transformation of the Internet.

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