### The Future of Manufacturing: Foxconn’s Perspective on AI and Robotics
In his keynote presentation at **Computex** in Taipei, Foxconn’s chairman Young Liu issued a stark alert regarding the future of labor in the manufacturing sector. He indicated that generative AI and robotics could soon eliminate the need for low-wage human workers on assembly lines, a change that may have significant consequences beyond the production of iPhones.
#### A Pricey Transition in the Assembly Line
Reports from *The Register* reveal that Liu emphasized the remarkable progress Foxconn has achieved by incorporating AI tools into its operations. At present, software can handle nearly 80% of the tasks necessary to set up equipment for new production runs, and it does so at a pace that far exceeds human performance. This move toward automation is not just an improvement of current methods; it signifies a profound change in manufacturing practices.
Liu admitted that although the synergy of AI and robotics cannot fully substitute for human employees, it does boost productivity, especially in troubleshooting situations on the factory floor. Nevertheless, he warned that these productivity enhancements might come at a hefty price, particularly for nations with lower GDPs. Liu remarked:
> “Generative AI and robotics will occupy the void. (…) That is the potential I perceive when a nation becomes wealthier. The low-GDP tasks will be taken over by GenAI and robotics. (…) I believe that poses a genuine challenge for all developed nations. (…) I urge the leaders of developed countries to monitor this situation very closely.”
This comment highlights the possible economic upheaval that could result from increased automation, particularly in areas that depend heavily on low-wage labor for manufacturing.
In addition to addressing the ramifications of AI, Liu revealed Foxconn’s creation of its own AI model, called “FoxBrain,” designed to autonomously carry out specific functions on the production floor. While Liu mentioned plans to open-source this model, no timeframe was provided, prompting speculation about its future uses.
#### Implications for the iPhone
Foxconn is recognized for assembling the bulk of iPhones, primarily in China. Despite Apple’s attempts to diversify its manufacturing footprint by extending production to nations like India, Vietnam, and Brazil, China’s distinct blend of advanced manufacturing capabilities and cost-effective labor continues to attract companies like Apple.
The incorporation of AI and robotics into manufacturing processes could dramatically change this scenario. By lessening dependence on low-cost labor, Apple might find it increasingly practical to think about manufacturing in areas with higher labor expenses. However, this situation presumes that China would remain passive during this transition, which is improbable given its strong interests in sustaining its manufacturing supremacy.
Even if Apple and Foxconn were to relocate some production outside of China, mimicking the efficiency and scale of China’s manufacturing ecosystem elsewhere would prove to be a significant challenge. Liu’s focus on automation implies that Foxconn is determined to bridge this gap over time, potentially altering the global manufacturing landscape.
### Conclusion
The perspectives offered by Young Liu at Computex sketch a scenario of a future where generative AI and robotics take center stage in manufacturing. While this transition promises enhanced efficiency and productivity, it also raises essential concerns about the future of labor, especially in low-GDP countries. As firms like Foxconn continue to innovate and automate, the consequences for global manufacturing, particularly for major entities like Apple, will be substantial and merit careful attention from policymakers and industry leaders alike.
