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Study Guide: Hon Hai Technology Group (Foxconn): Corporate History and Operations

Cheat Sheet:
Hon Hai Technology Group (Foxconn): Corporate History and Operations Study Guide

Corporate Identity and Genesis

What is the official corporate designation for the entity widely recognized as Foxconn?

Answer: True

Explanation: The entity commonly referred to as Foxconn is officially registered as Hon Hai Precision Industry Co., Ltd. It operates under the name Hon Hai Technology Group in Taiwan and Foxconn Technology Group in mainland China.

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In what year was Hon Hai Precision Industry Co., Ltd. established, and where is its corporate headquarters situated?

Answer: False

Explanation: Hon Hai Precision Industry Co., Ltd. was established in 1974, with its corporate headquarters located in Tucheng District, New Taipei City, Taiwan.

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Where did Terry Gou establish Hon Hai Precision Industry Co., Ltd. in 1974?

Answer: False

Explanation: Terry Gou established Hon Hai Precision Industry Co., Ltd. in Taipei, Taiwan, in 1974.

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What is the official corporate designation of the entity commonly known as Foxconn?

Answer: Hon Hai Precision Industry Co., Ltd.

Explanation: The official corporate designation of the company commonly referred to as Foxconn is Hon Hai Precision Industry Co., Ltd.

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When was Foxconn founded, and where is its corporate headquarters situated?

Answer: 1974, Tucheng District, New Taipei City, Taiwan

Explanation: Foxconn was founded in 1974, and its corporate headquarters are located in Tucheng District, New Taipei City, Taiwan.

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In which city and country did Terry Gou establish Hon Hai Precision Industry Co., Ltd. in 1974?

Answer: Taipei, Taiwan

Explanation: Terry Gou established Hon Hai Precision Industry Co., Ltd. in Taipei, Taiwan, in 1974.

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Historical Trajectory and Strategic Evolution

In which specific town and city was Foxconn's first manufacturing plant in mainland China established?

Answer: False

Explanation: Foxconn's first manufacturing plant in mainland China was established in Longhua Town, Shenzhen, in 1988.

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What significant manufacturing contract did Foxconn secure in 2001?

Answer: True

Explanation: In 2001, Foxconn secured a contract to manufacture Intel-branded motherboards.

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What was the outcome of Foxconn's initial plan to acquire a stake in Sharp Corporation in March 2012?

Answer: False

Explanation: Foxconn announced plans to acquire a 10% stake in Sharp Corporation in March 2012, but this deal was ultimately broken off due to Sharp's declining share value.

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In what year did Foxconn finalize its acquisition of Sharp Corporation, and for approximately what value?

Answer: True

Explanation: Foxconn finalized its acquisition of Sharp Corporation in 2016 for approximately US$6.24 billion.

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What agreement did Foxconn enter into with Lordstown Motors in October 2021?

Answer: True

Explanation: In October 2021, Foxconn agreed to purchase a former General Motors facility from Lordstown Motors and invest $50 million into the company, intending to utilize the site for contract manufacturing.

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What is the status of Foxconn's initiative to automate its workforce?

Answer: True

Explanation: Foxconn has been actively replacing its human workforce with robots since 2016, having automated a significant portion of its operations by that year.

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What was the strategic purpose of FIH Mobile's acquisition of Microsoft Mobile's feature phone business in May 2016?

Answer: True

Explanation: The strategic purpose of FIH Mobile's acquisition of Microsoft Mobile's feature phone business in May 2016 was to expand its mobile manufacturing operations, including a facility in Vietnam.

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Since when has Foxconn been actively implementing its plan to replace its human workforce with robots?

Answer: True

Explanation: Foxconn's plan to replace its workforce with robots has been ongoing since 2016.

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What was the initial focus of Foxconn's investment plan in Wisconsin?

Answer: True

Explanation: The initial plan for Foxconn's Wisconsin investment focused on building a large-scale TV manufacturing plant.

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In which specific town and city was Foxconn's first manufacturing plant in mainland China established?

Answer: True

Explanation: Foxconn's first manufacturing plant in mainland China was established in Longhua Town, Shenzhen, in 1988.

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Was the deal for Foxconn to acquire a stake in Sharp Corporation in 2012 successfully completed?

Answer: False

Explanation: No, the deal for Foxconn to acquire a stake in Sharp Corporation in 2012 was not successfully completed due to Sharp's declining share value.

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In which specific town and city was Foxconn's first manufacturing plant in mainland China established?

Answer: Longhua Town, Shenzhen

Explanation: Foxconn's first manufacturing plant in mainland China was established in Longhua Town, Shenzhen, in 1988.

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What significant manufacturing contract did Foxconn secure in 2001?

Answer: Manufacturing Intel-branded motherboards

Explanation: In 2001, Foxconn secured a contract to manufacture Intel-branded motherboards.

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What was the reason for the failure of Foxconn's initial plan to acquire a stake in Sharp Corporation in 2012?

Answer: Sharp's declining share value led to the deal being broken off.

Explanation: Foxconn's initial plan to acquire a stake in Sharp Corporation in 2012 fell through due to Sharp's declining share value.

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Foxconn finalized its acquisition of Sharp Corporation in 2016. What was the approximate value of this transaction?

Answer: US$6.24 billion

Explanation: Foxconn finalized its acquisition of Sharp Corporation in 2016 for approximately US$6.24 billion.

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What agreement did Foxconn enter into with Lordstown Motors in October 2021?

Answer: Foxconn agreed to purchase a former GM plant and invest $50 million in Lordstown Motors.

Explanation: In October 2021, Foxconn agreed to purchase a facility from Lordstown Motors and invest $50 million in the company.

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What was the strategic purpose of FIH Mobile's acquisition of Microsoft Mobile's feature phone business in May 2016?

Answer: To expand its mobile manufacturing operations, including a facility in Vietnam

Explanation: The strategic purpose of FIH Mobile's acquisition of Microsoft Mobile's feature phone business in May 2016 was to expand its mobile manufacturing operations, including a facility in Vietnam.

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Global Operations and Business Model

What is the principal business model of Foxconn?

Answer: False

Explanation: Foxconn's principal business model is contract manufacturing, focusing on the production of electronic products for other companies rather than designing and marketing its own branded consumer electronics.

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By 2012, what proportion of the world's consumer electronics manufacturing was attributed to Foxconn factories?

Answer: False

Explanation: By 2012, Foxconn factories were responsible for manufacturing approximately 40% of the world's consumer electronics.

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In approximately how many countries and territories does Foxconn operate its global network of facilities?

Answer: False

Explanation: Foxconn operates a global network of facilities in 24 countries and territories worldwide.

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What is the common nickname for the Foxconn factory complex in Zhengzhou, and why is it so designated?

Answer: True

Explanation: The Foxconn factory complex in Zhengzhou is nicknamed 'iPhone City' due to its primary role as the principal assembly location for Apple's iPhone product line.

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What are Foxconn's stated employment targets for India by 2030?

Answer: True

Explanation: Foxconn aims to create 2 million jobs in India by 2030.

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What is the primary scope of services offered by FIH Mobile, a subsidiary of Foxconn?

Answer: False

Explanation: FIH Mobile, a Foxconn subsidiary, offers product development and after-sales support, rather than solely focusing on manufacturing components for Foxconn's main product lines.

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Identify two major North American technology companies that are or have been significant customers of Foxconn.

Answer: True

Explanation: Apple Inc. and Microsoft are listed as major North American customers of Foxconn.

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Which of the following companies is identified as a major Asian customer of Foxconn, contrary to being European?

Answer: False

Explanation: Huawei is identified as a major Asian customer of Foxconn. Nintendo is a major Japanese customer, and neither are primarily European customers.

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What is the approximate area covered by Foxconn's Longhua factory complex in Shenzhen?

Answer: False

Explanation: Foxconn's Longhua factory complex in Shenzhen covers approximately 3 square kilometers (approximately 1.2 square miles).

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What is the designation of the Foxconn factory complex in Zhengzhou, and what is its primary function?

Answer: True

Explanation: The Foxconn factory complex in Zhengzhou is known as 'iPhone City' because it is the primary production site for most of Apple's iPhones.

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What is the primary business focus of Foxconn?

Answer: Manufacturing electronic products under contract for other companies

Explanation: Foxconn's primary business focus is contract manufacturing of electronic products for other companies.

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By 2012, what proportion of the world's consumer electronics manufacturing was attributed to Foxconn?

Answer: Approximately 40%

Explanation: By 2012, Foxconn factories were responsible for manufacturing approximately 40% of the world's consumer electronics.

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In how many countries and territories does Foxconn operate its global network of campuses and offices?

Answer: 24

Explanation: Foxconn operates its global network of campuses and offices across 24 countries and territories worldwide.

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What is the common nickname for the Foxconn factory complex located in Zhengzhou, Henan province?

Answer: iPhone City

Explanation: The Foxconn factory complex in Zhengzhou, Henan province, is commonly nicknamed 'iPhone City'.

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What range of services does FIH Mobile, a subsidiary of Foxconn, provide?

Answer: Product development and after-sales support

Explanation: FIH Mobile, a subsidiary of Foxconn, offers product development and after-sales support services.

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Which of the following companies is listed as a major North American customer of Foxconn?

Answer: BlackBerry Ltd.

Explanation: BlackBerry Ltd. is listed as a major North American customer of Foxconn.

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Which of the following companies is listed as a major Asian customer of Foxconn?

Answer: Huawei

Explanation: Huawei is listed as a major Asian customer of Foxconn.

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Financial Performance and Market Standing

What was Foxconn's position on the 2023 Fortune Global 500 list?

Answer: True

Explanation: In the 2023 Fortune Global 500 compilation, Foxconn secured the 20th position.

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What was Foxconn's approximate annual revenue in U.S. dollars for the fiscal year 2023?

Answer: True

Explanation: Foxconn's annual revenue for 2023 was approximately US$192.38 billion.

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What was Foxconn's reported revenue in 2023, and its approximate equivalent in U.S. dollars?

Answer: True

Explanation: Foxconn's 2023 revenue was reported as 6.16 trillion New Taiwan dollars, equivalent to approximately US$192 billion.

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What was Foxconn's global ranking on the 2023 Fortune Global 500 list?

Answer: 20th

Explanation: Foxconn's global ranking on the 2023 Fortune Global 500 list was 20th.

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What was Foxconn's approximate annual revenue in U.S. dollars for the year 2023?

Answer: US$192.38 billion

Explanation: Foxconn's approximate annual revenue in 2023 was US$192.38 billion.

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Leadership Transitions and Strategic Direction

Identify the founder of Foxconn and the individual who succeeded him as chairman.

Answer: False

Explanation: Terry Gou is the founder of Foxconn and served as its chairman for many years. Young Liu succeeded him as chairman in 2019.

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What strategic shift did the leadership of Young Liu signal for Foxconn?

Answer: False

Explanation: Young Liu's chairmanship signaled a strategic shift for Foxconn towards prioritizing semiconductors and emerging technologies, rather than focusing solely on smartphone assembly.

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Who succeeded Terry Gou as chairman of Foxconn in 2019?

Answer: True

Explanation: Young Liu succeeded Terry Gou as chairman of Foxconn in 2019.

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Who founded Hon Hai Precision Industry Co., Ltd. and served as its chairman for an extended period?

Answer: Terry Gou

Explanation: Terry Gou founded Hon Hai Precision Industry Co., Ltd. and served as its chairman for many years.

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Who succeeded Terry Gou as chairman of Foxconn, and what strategic shift did this leadership transition signify?

Answer: Young Liu; focus on semiconductors and emerging technologies

Explanation: Young Liu succeeded Terry Gou as chairman, signaling a strategic shift towards prioritizing semiconductors and emerging technologies.

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Labor Relations and Societal Impact

How did Foxconn contribute to the supply chain during the COVID-19 pandemic?

Answer: True

Explanation: During the COVID-19 pandemic, Foxconn repurposed some of its factories to produce medical masks and clothing.

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What role did Foxconn's founder, Terry Gou, play in Taiwan's COVID-19 vaccine procurement in June 2021?

Answer: True

Explanation: In June 2021, Terry Gou, Foxconn's founder, was authorized by Taiwan, through his Yongling Foundation, to negotiate the purchase of BioNTech vaccines on behalf of the island.

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What was the cause of disruptions at Foxconn's Tijuana, Mexico facility in May/June 2022?

Answer: True

Explanation: Disruptions at Foxconn's Tijuana, Mexico facility in May/June 2022 were caused by a ransomware cyberattack.

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What types of allegations have frequently been made regarding working conditions at Foxconn facilities?

Answer: True

Explanation: Allegations against Foxconn have frequently included excessive working hours and documented instances of worker abuse.

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How did Steve Jobs characterize Foxconn facilities in 2010 when defending Apple's relationship with the company?

Answer: False

Explanation: In 2010, Steve Jobs defended Foxconn facilities, describing them as 'pretty nice' and explicitly stating they were 'not a sweatshop'.

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How did a report involving 20 universities characterize Foxconn factories in terms of worker treatment?

Answer: True

Explanation: A report involving 20 universities described Foxconn factories as resembling 'labor camps' due to widespread worker abuse and instances of illegal overtime.

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What measures did Foxconn implement in response to a series of worker suicides in 2010?

Answer: True

Explanation: In response to worker suicides in 2010, Foxconn installed suicide-prevention netting at some facilities and announced plans to increase wages.

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What was the consequence for the Foxconn plant in Sriperumbudur, India, following a food poisoning incident and worker protests in late 2021?

Answer: True

Explanation: A food poisoning incident at Foxconn's Sriperumbudur factory in India, followed by worker protests, led to Apple placing the plant on probation.

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What specific environmental concern was raised regarding Foxconn's Wisconsin plant?

Answer: True

Explanation: Concerns were raised that Foxconn's Wisconsin plant received exemptions from filing environmental impact statements.

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What did the 2012 audit commissioned by Apple find regarding Foxconn workers' overtime hours?

Answer: False

Explanation: The 2012 audit commissioned by Apple found that Foxconn workers frequently exceeded legal overtime limits, often working inhumane hours.

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Through which channels did Foxconn's founder facilitate Taiwan's COVID-19 vaccine procurement?

Answer: False

Explanation: Foxconn's founder, Terry Gou, facilitated Taiwan's COVID-19 vaccine procurement through his Yongling Foundation charity, not directly through corporate channels.

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How did Foxconn contribute to the response to the COVID-19 pandemic in early 2020?

Answer: By producing medical masks and clothing

Explanation: In early 2020, Foxconn repurposed some factories to produce medical masks and clothing.

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In June 2021, who was authorized by Taiwan to negotiate the purchase of COVID-19 vaccines on its behalf, acting on behalf of the island and involving Foxconn's founder?

Answer: Foxconn's founder, Terry Gou, via the Yongling Foundation

Explanation: In June 2021, Terry Gou, Foxconn's founder, was authorized by Taiwan, through his Yongling Foundation, to negotiate the purchase of BioNTech vaccines on behalf of the island.

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What was the cause of disruptions at Foxconn's Tijuana, Mexico facility in May/June 2022?

Answer: A ransomware cyberattack

Explanation: Disruptions at Foxconn's Tijuana, Mexico facility in May/June 2022 were caused by a ransomware cyberattack.

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Which of the following represents a recurring allegation concerning working conditions at Foxconn facilities?

Answer: Instances of worker abuse and excessive working hours

Explanation: Instances of worker abuse and excessive working hours are recurring allegations regarding working conditions at Foxconn facilities.

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In 2010, how did Steve Jobs characterize Foxconn facilities when defending Apple's relationship with the company?

Answer: As 'pretty nice' and explicitly 'not a sweatshop'

Explanation: In 2010, Steve Jobs characterized Foxconn facilities as 'pretty nice' and explicitly stated they were 'not a sweatshop'.

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How did a report involving 20 universities describe Foxconn factories in terms of worker treatment?

Answer: Akin to 'labor camps' due to widespread abuse

Explanation: A report involving 20 universities described Foxconn factories as akin to 'labor camps' due to widespread worker abuse and instances of illegal overtime.

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What measures did Foxconn implement in response to a series of worker suicides in 2010?

Answer: Installed suicide-prevention netting and planned wage increases

Explanation: In response to worker suicides in 2010, Foxconn installed suicide-prevention netting and announced plans to increase wages.

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What was the consequence for the Foxconn plant in Sriperumbudur, India, following a food poisoning incident and worker protests in late 2021?

Answer: Apple placed the plant on probation.

Explanation: Following a food poisoning incident and worker protests concerning living conditions, Apple placed the Foxconn plant in Sriperumbudur on probation.

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What specific environmental concern was raised regarding Foxconn's Wisconsin plant?

Answer: Exemption from filing an environmental impact statement

Explanation: A specific environmental concern raised regarding Foxconn's Wisconsin plant was its exemption from filing an environmental impact statement.

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What action did Foxconn take in November 2017 following reports of students working illegal overtime hours?

Answer: Halted the overtime work for the students

Explanation: In November 2017, Foxconn halted the overtime work for students who were reportedly working illegal hours.

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What did the 2012 audit commissioned by Apple find regarding the working conditions of Foxconn workers?

Answer: Inhumane levels of overtime, sometimes reaching 34 hours without pay

Explanation: The 2012 audit commissioned by Apple found that Foxconn workers frequently experienced inhumane levels of overtime, sometimes reaching 34 hours without pay.

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Diversification and Emerging Technologies

What type of vehicles was the startup co-founded by Foxconn in 2016 focused on developing?

Answer: False

Explanation: The startup co-founded by Foxconn in 2016, Future Mobility, was focused on developing all-electric, fully autonomous premium cars, not traditional gasoline-powered vehicles.

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What was the initial stated purpose of Foxconn's planned $10 billion investment in Wisconsin announced in 2017?

Answer: False

Explanation: The initial plan for Foxconn's $10 billion investment in Wisconsin was to construct a large-scale TV manufacturing facility, not a semiconductor manufacturing plant.

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What was the outcome of the planned joint semiconductor plant in India between Foxconn and Vedanta Group?

Answer: False

Explanation: Foxconn withdrew from the planned joint semiconductor plant in India with Vedanta Group in July 2023, meaning it was not successfully established.

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What is the primary objective of the MIH Alliance, initiated by Foxconn?

Answer: False

Explanation: The MIH Alliance, initiated by Foxconn, focuses on creating an open ecosystem for electric vehicles, rather than developing proprietary software.

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Which three electric vehicle models did Foxconn introduce at the Hon Hai Tech Day 2021 (HHTD21)?

Answer: True

Explanation: At HHTD21, Foxconn introduced the Model C (recreational vehicle), Model E (sedan), and Model T (electric bus).

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What is Foxtron, established in 2020, and what is its primary focus?

Answer: False

Explanation: Foxtron, established in 2020, is a joint venture between Foxconn and Yulon Group focused on the development and manufacturing of electric vehicles, not AI development.

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What strategic move did Foxconn undertake in the semiconductor sector in mid-2021?

Answer: True

Explanation: In mid-2021, Foxconn expanded its semiconductor involvement by forming the XSemi Corporation joint venture with Yageo Group.

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What entity was created through Foxconn's partnership with Yulon Group, and what is its focus?

Answer: True

Explanation: Foxconn's partnership with Yulon Group resulted in the creation of the Foxtron brand, dedicated to electric vehicles.

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What is the stated objective of the MIH Alliance, initiated by Foxconn?

Answer: True

Explanation: The MIH Alliance aims to create an open ecosystem for electric vehicles, fostering collaboration and standardization within the industry.

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When did Foxconn withdraw from its joint venture with Vedanta Group for a semiconductor plant in India?

Answer: False

Explanation: Foxconn withdrew from its joint venture with Vedanta Group for a semiconductor plant in India in July 2023, not in 2022.

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What category of vehicles was the startup Future Mobility, co-founded by Foxconn in 2016, focused on developing?

Answer: All-electric, fully autonomous premium cars

Explanation: The startup Future Mobility, co-founded by Foxconn in 2016, was focused on developing all-electric, fully autonomous premium cars, not traditional gasoline-powered vehicles.

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What was the initial purpose of Foxconn's planned $10 billion investment in Wisconsin, announced in 2017?

Answer: To construct a large-scale TV manufacturing facility

Explanation: The initial purpose of Foxconn's planned $10 billion investment in Wisconsin was to construct a large-scale TV manufacturing facility.

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What was the outcome of the planned $21 billion joint venture between Foxconn and Vedanta Group for a semiconductor plant in India?

Answer: Foxconn withdrew from the joint project in July 2023.

Explanation: Foxconn withdrew from the planned $21 billion joint venture with Vedanta Group for a semiconductor plant in India in July 2023.

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What is the primary objective of the MIH Alliance, initiated by Foxconn?

Answer: To create an open ecosystem for electric vehicles

Explanation: The primary goal of the MIH Alliance, initiated by Foxconn, is to create an open ecosystem for electric vehicles.

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Which of the following electric vehicle models was NOT introduced by Foxconn at the Hon Hai Tech Day 2021 (HHTD21)?

Answer: Model X

Explanation: Model X was not among the EV models introduced by Foxconn at HHTD21; the introduced models were Model C, Model E, and Model T.

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What is Foxtron, established in 2020, and what is its primary focus?

Answer: A joint venture between Foxconn and Yulon Group for electric vehicles

Explanation: Foxtron, established in 2020, is a joint venture between Foxconn and Yulon Group focused on the development and manufacturing of electric vehicles.

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What strategic move did Foxconn undertake in the semiconductor industry in mid-2021?

Answer: Formed a joint venture called XSemi Corporation with Yageo Group

Explanation: In mid-2021, Foxconn formed a joint venture called XSemi Corporation with Yageo Group, expanding its semiconductor involvement.

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