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The company's security teams are reportedly wearing riot helmets and holding plastic shields as they march around the facility.
The Apple supplier claims a fight between workers escalated into a riot that required police intervention.
A report from a Hong-Kong watchdog group accuses suppliers of "military-style management of workers," despite Apple's code of conduct.
The manufacturer tells CNET it has slowed down its hiring due to a high rate of employee return after the Chinese New Year. The Financial Times says Foxconn has actually frozen recruitment due to slowing demand for the iPhone 5.
The contract manufacturer, which makes iPhones and other consumer electronics, acknowledges a "workplace issue" at a factory run by a supplier that reportedly makes iPhone connectors and other goods.
Following a rash of suicides and criticism of factory working conditions, the Taiwanese hardware maker announced the move last year, saying it was designed to improve efficiency and combat rising labor costs.
Production at the Taiyuan factory was halted due to a riot that occurred last night. Foxconn says there were no employees deaths related to the incident.
Major Apple device manufacturer says a dispute occurred between factory line workers and quality assurance personnel at a plant in China, The Wall Street Journal reports.
The workers have been asked for higher standards without adequate training, according to a report.
Workers at a key Foxconn facility producing iPhones went on strike earlier today, according to a report from a Chinese watchdog group.