Another Foxconn appeared?Shut down 12 billion factories and abandon 100,000 employees

Mondo Technology Updated on 2024-01-29

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Reading guide:Another Foxconn appeared?Shut down 12 billion factories and "abandon" 100,000 employees to run away.

In recent years, with the rapid development of China's economy, more and more foreign enterprises choose to invest and build factories in Chinese mainland. However, some companies, while enjoying the huge benefits of the Chinese market, have chosen to withdraw or reduce investment in certain situations. This situation has aroused people's attention and thinking.

Taking Foxconn as an example, as a world-renowned OEM company, Foxconn has a wide range of business in the Chinese market. However, with the United States' suppression of Huawei and other Chinese companies, Foxconn began to consider withdrawing and began to invest in India, Vietnam and other places. According to reports, after Apple wanted to go to India for development, Gou's Foxconn planned to move all 300 billion production capacity to India. This decision has undoubtedly had a huge impact on the foundry market.

However, shortly after the news of Foxconn's withdrawal, another OEM giant announced its withdrawal from the Chinese market. According to reports, Pegatron, which is an OEM like Foxconn, has decided to close its 12 billion factories in mainland China and shift production capacity to countries such as India. This decision will cause 100,000 workers to lose their jobs and have an impact on the entire contract manufacturing industry.

Different people have different opinions on the decision to withdraw from OEM companies such as Foxconn and Pegatron. Some believe that these companies are pursuing a lower-cost production environment such as India's cheap large labor force in order to make greater profits. However, there are also people who believe that the behavior of these companies is a kind of "eating and smashing the pot" behavior, which is irresponsible.

In fact, the decision to withdraw from these enterprises is not a simple economic issue. Some businesses may think that they can get advantages such as lower labor costs and tax incentives in India;Other companies may be worried about the suppression of the United States, as well as the impact of Apple's order changes or other factors on their business, so they also choose to actively withdraw and follow Apple's pace to invest in India.

However, for the Chinese market, the withdrawal of these companies will undoubtedly have a certain impact on China's manufacturing and employment markets. And we have recognized this problem and have taken a series of measures to encourage companies such as Foxconn to stay in the Chinese market. For example, we have increased our investment and support for the manufacturing industry to improve its competitiveness and innovationAt the same time, a series of preferential policies have been introduced to attract foreign enterprises to continue to invest and build factories in the mainland market.

However, for these OEMs, it is not enough to rely on support and preferential policies. They also need to think about how to maintain their competitive edge in the context of globalization. On this issue, some companies may choose to strengthen technology R&D and innovation to improve the quality and added value of their products;Others may choose to strengthen their cooperation with other countries to gain access to more resources and market opportunities.

Either way, it requires OEM companies to think and act carefully. In this process, foundry companies need to consider various factors, including labor costs, tax policies, technology research and development, chain management, and so on. Only in this way can foundry enterprises maintain their competitive advantages and achieve greater development in the context of globalization.

In short, we need to carefully think about and analyze the reasons and effects of the withdrawal decision of these OEM companies. In this process, domestic enterprises also need to take active measures to deal with this challenge and create more opportunities and value, such as our BYD, Luxshare Precision, etc. are rising rapidly in the foundry market, they can also promote the sustainable development of China's manufacturing industry and create more jobs and social value, and Foxconn, Pegatron and other foundries are easy to go out, and it is difficult to come back!

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