Report: Foxconn to relocate to the Philippines?

Foxconn Technology Group may be eyeing to transfer some of its capacities in the Philippines, according to a report published by Manila Bulletin. Foxconn is one of the world's largest contract manufacturers with a client list that includes Apple Inc., Hewlett-Packard Co., Intel Corp. and Microsoft Corp.

The electronics and computer components giant is currently thinking of relocating some of its capacities outside of China because of the shortage of available workforce and rising wage rates, an unnamed high-ranking official was reportedly quoted saying. The article added that the Philippines is included in the shortlist of countries the company is considering as investment destination.

The Foxconn official also added that the Philippines is convincing the company to consider the country as a relocation site for some of Foxconn's operations.

The report said that this potential Foxconn investment was identified by the Global Marketing Intelligence System (GMIS) of the Philippines' Department of Trade and Industry.

Foxconn is one of China's largest employer as it currently has around 1.2 million-strong workforce. A Foxconn investment will give the Philippine's electronics industry a boost.

However, just recently, the company was a subject of controversy as the Fair Labor Association released a report revealing labor malpractices that include extreme working hours and unpaid overtime work. The company has said it was working on solving its labor issues.