140 billion into a chicken feather?Guo Taiming announced his official retirement, and the foreign media bamboo basket was empty
Since Chinese companies such as Huawei were sanctioned by the United States, Apple has begun to reduce its reliance on Chinese manufacturing and look for more cost-effective ways to produce it. To that end, Apple has set its sights on the Southeast Asian market, especially India.
As Apple's main partner, Foxconn has quickly followed this shift. In the past few years, Foxconn has laid off about 300,000 employees and gradually transferred nearly 300 billion yuan of production capacity. At the same time, they are also starting to see India as an important market for the future, and obviously, they are determined to put down roots there.
In addition to electronics manufacturing, Foxconn has also established a full-fledged chip factory with a joint venture with Vedanta, a local Indian company, with a scale of up to US$19.5 billion, or about 140 billion yuan. This move shows Foxconn's sincerity and determination.
However, unexpectedly, despite Foxconn's significant investment in ensuring that the equipment and materials needed for the fab were ready, approval issues began to arise in India**. India did not approve Foxconn's chip project, which prevented the factory from operating.
India has asked Foxconn and Vedanta to resubmit their applications. The reason India** is said to have done this is because neither Foxconn nor Vedanta have much experience in the semiconductor field, so they are trying to put pressure through approval restrictions to get Foxconn to invite STMicroelectronics into the joint venture.
However, due to the complex interests involved, ST is only willing to license the technology and is reluctant to participate in actual joint venture projects. Without ST's involvement, even if Foxconn submits its application again, it is likely to be rejected.
So far, the project has been delayed for almost a year and a half. Faced with this dilemma, Foxconn no longer compromises. On July 10, Hon Hai Group (Foxconn's parent company) officially announced that it would stop its joint venture chip factory project with Indian company Vedanta and would remove Hon Hai's name from the wholly-owned entity.
This means that Foxconn has completely withdrawn, and all previous efforts for this have been in vain. The 140 billion semiconductor project is basically a miscarriage.
After Foxconn's crushing defeat in India, it chose to turn the finger back on China. Not only did they set up a new business headquarters in Zhengzhou, Henan Province, but they also built their own semiconductor factory in Qingdao.
The prosperity of the Chinese market is palpable. Boeing's revenues have skyrocketed in recent years as a result of increased aviation demand, more than half of which comes from the Chinese market. In addition, China 2The health needs of 600 million elderly people have also attracted the attention of life science companies in Europe and the United States, who have come to China to set up their layout.
It is reported that Shi Ji Na is a professor of Harvard Medical SchoolThe substances developed by the Glenn Center on Aging include activated telomeres, sirtuins longevity protein and PARP enzymes, which can extend the life cycle by up to 30%. The ** of this substance was once as high as 230,000 grams.
Subsequently, the Lee family of Hong Kong, China, invested 1700 million introduced similar rejuvenating substances. This has prompted European and American manufacturers to reduce the production cost of this substance by 95%, and at present, it is highly concerned by high-net-worth individuals in Beijing, and industry analysis **, the market for this anti-aging product may reach 100 billion in the future.
In contrast, India can only rely on cheap labor to attract foreign investment and try to make profits through various means. Such an approach is hardly a substitute for the Chinese market.
After Guo Taiming withdrew from the 100 billion chip joint venture project with India, he seemed to realize that it was not Foxconn that gave money to Chinese mainland, but Chinese mainland that gave birth to Foxconn's development.
At a time of increasingly fierce global OEM competition, Foxconn is eager to develop into high-end manufacturing, and urgently needs to find new growth opportunities and ways to enhance its core competitiveness. While building a factory in India was an exploration, Gou may be shifting his focus back to the Chinese mainland market.
However, with the rapid rise of China's core manufacturing industry and the establishment of a voice in key areas, relying solely on low-end manufacturing for Apple is no longer a sustainable path. So, what will be the next industrial direction that Terry Gou will lead Foxconn to enter?This is a question of great anticipation.