Foxconn is a manufacturing plant located in Yantai, China. Over the years, the plant has earned a crap reputation due to the low wages employees earn, discrimination, how they used child labor, riots, and even suicides. You know, just to name a few things. However, because it is cheap labor, many large companies opt to have their devices manufactured at the plant.
One of these companies is Sony. And yes, it seems as though the PlayStation 4 was manufactured, in part, at Foxconn. A user on the IGN forums
had a screenshot of a now deleted forum post from an alleged Foxconn intern. The content of the post in the screenshot loosely translates to, "Since foxconn are not treating us well, we will not treat ps4 console well. The ps4 console we assemble can be turned on at best."
That post was apparently made back on August 28. The person who shared the image at IGN made another thread after the first was locked. The second thread goes on to explain in a bit more detail
about how the image of the post is real, etc.
There were reports that the interns were from a nearby college, one that is 24-hours away from the plant via train ride, and were forced to intern there from their college if they wanted to graduate.
If any of this is true, and it looks like it very well could be, this would explain why Amazon received such a terrible batch of PlayStation 4 consoles for release.