People were surprised and confused by Foxconn's decision to close factories in mainland China with Pegatron. As one of the world's largest electronics foundries, Foxconn's closure of a $10 billion factory meant the loss of a lot of production capacity and jobs. Although Pegatron is not as large as Foxconn, it has a good reputation in the field of consumer electronics manufacturing, and the closure of the 12 billion factory has also attracted the attention of the industry. Is there a deeper reason behind the withdrawal of these two Taiwan companies from the mainland market?
There are many interpretations of the reasons behind the withdrawal of Foxconn and Pegatron. First of all, Foxconn was previously placed under investigation, which may have made Pegatron feel a little uneasy. As an Apple company, Pegatron is also facing the pressure of market competition. Secondly, Apple, as a world-renowned technology company, has also increased its requirements for leading merchants in the face of fierce competition in the Chinese market and declining sales. In order to win Apple's orders and remain competitive, Foxconn and Pegatron may be forced to relocate production capacity to meet Apple's demand.
However, the withdrawal of foundry companies such as Foxconn and Pegatron from the mainland market will not cause a heavy blow to China's manufacturing industry. On the contrary, this may be an opportunity for the development of China's manufacturing industry. Companies such as Foxconn and Pegatron are mainly engaged in low-value-added industries, while domestic companies such as BYD have the ability to replace them. In addition, the industrial chain in Southeast Asia is relatively imperfect, and the quality of employees is generally low, which also leads to the rise of manufacturing costs and the increase of management difficulty. Therefore, Foxconn and Pegatron building factories in Southeast Asia may not reduce manufacturing costs, but may be kicked out of the chain by Apple.
Foxconn and Pegatron have withdrawn from the mainland market, and this incident has triggered people's thinking and reflection on the development of China's manufacturing industry. First of all, this shows that China's manufacturing industry is facing huge challenges and needs to accelerate industrial upgrading, improve technological innovation capabilities and system integration capabilities. Only through independent innovation and technology leadership can we remain invincible in global competition. Secondly, this also highlights the position of China's manufacturing industry in the value chain and the dependence on core technologies. Foxconn, Pegatron and other enterprises withdrew from the mainland market, on the one hand, because of fierce market competition, and on the other hand, it is also related to China's lack of core technology. Therefore, China must strengthen independent innovation and research and development of core technologies, reduce dependence on external technology, and improve the competitiveness of the manufacturing industry.
In addition, the withdrawal of Foxconn and Pegatron from the mainland market has also triggered thinking about the impact and positioning of foreign investment in China's manufacturing industry. The withdrawal of foreign capital does not necessarily mean a complete loss. On the contrary, it also creates opportunities for our country to attract higher quality foreign investment. We should encourage and guide foreign-funded enterprises to carry out technological innovation and R&D in China, and improve their position in the value chain.
In short, the withdrawal of Foxconn and Pegatron from the mainland market is a microcosm of the current global technological competition and industrial transformation. As an important part of China's manufacturing industry, we need to deeply understand the problem and take corresponding measures to solve it. Only by accelerating industrial upgrading, improving the ability of independent innovation, and building a sound industrial chain and ecosystem can we ensure that China's manufacturing industry is competitive in the world and achieve the goal of great rejuvenation.