Terry Gou lost the bet !India officially took action, and the Foxconn era may be over

Mondo Technology Updated on 2024-01-19

As the world's highest market value of technology enterprises, Apple's ability to absorb gold is undoubted, and the profits of the first chain enterprises are also very kind, so many companies in the industry want to become a part of the Apple chain, which not only means that there is no need to worry about orders in the future, but also means that their products and technologies have reached the industry-leading level, which will have a positive impact on its brand influence and market value. And for the ** businessmen who have become Apple, they hug Apple's thighs tightly and will not let go, such as Foxconn.

Foxconn was originally an ordinary factory founded by Terry Gou in Shenzhen, after the "marriage" with Apple, relying on Apple's orders to rise rapidly, taking advantage of China's policies and demographic dividends at that time, it became the world's largest factory in the field of electronic foundry in one fell swoop, stealing the limelight, and the annual revenue at its peak once reached 25 times, Guo Taiming's worth is even higher, so he began to float, once threatened to come to the mainland to build a factory for mainlanders to eat, let alone want to assume the responsibility of a company.

Especially when Apple shifted the ** chain to the Indian market, where labor is cheaper, Foxconn has also been actively expanding its business in India, and plans to transfer $300 billion of mainland production capacity to India in the next three years, expanding the number of employees in India from 40,000 to 200,000. The purpose of Foxconn's move is very clear, that is, to win more orders from Apple through capital, factory size, and number of employees, and firmly hold on to the big tree of Apple.

Population is the first element of the market, directly determines the market size and potential capacity, in this regard, China and the Indian market Qihoo is equivalent, on the one hand is a huge and high-quality Chinese market, on the other hand is the largest population, huge potential of the Indian market, Foxconn in China, India on both sides of the choice, in fact, is "a big gamble", take a wrong step is a catastrophe.

However, what Guo Tai never expected was that although India has policy incentives, demographic dividends and market potential, Foxconn and others went to India in a big way, which is more like falling into a huge "trap"!

First of all, in terms of employee quality, although India is not short of labor, but the quality of employees is far less than the Chinese market, it is reported that about half Xi of the population aged 25-64 in India has not completed a junior high school education, learning ability, organization and other fields are far less than domestic employees, coupled with the unstable public security environment, resulting in slow progress of Foxconn's Indian factory, frequent accidents such as strikes and fires, production capacity can not keep up with the rhythm, the process can not reach Apple's high quality control requirements, to put it mildly, it is a serious crisis for Apple in the Indian ** chain.

As a result, we found that Apple gradually lost its favor with Foxconn, and began to incubate its competitors, such as Luxshare Precision, Pegatron, etc., and Foxconn also lost a lot of iPhone orders.

Secondly, there has always been such a saying in the industry that "India makes money and India spends", for some foreign companies, that is, it is not easy to transfer funds out of India, but in the eyes of India, the best way is to keep it for itself, and India has already made a move, and it is steady and steady, step by step.

For example, Wistron, an OEM company that is worse than Foxconn, began to buy land and build factories in India in 2006, and has been working diligently for more than ten years. After the completion of the acquisition of Wistron, Tata has become one of Apple's largest OEM companies in India, and after tasting the sweetness of Apple's order, Tata has even greater ambitions.

It is reported that some time ago, the Tata Group has been poaching technical talents from Foxconn on attractive terms with a 20% salary increase, such as mold designers, high-precision machining process engineers, etc., and has also launched a customized "digital manufacturing" diploma, aiming to cultivate high-quality talents for the Tata Group. It is not difficult to find that Tata's acquisition of Wistron to obtain Apple orders is only the starting point, and all that is being done at present is to hand over a satisfactory answer to Apple and strive for chips for taking more orders from Foxconn in the future.

Some analysts said that after the Tata Group completed the acquisition of Wistron's Indian factory, it will seek to acquire Apple's other major OEM company and Shuo's iPhone manufacturing department in India in the future, so the real battle in the future is Tata Group vs Foxconn!

Who loses and who wins the two, everyone basically has an answer in their hearts!In July 2023, Foxconn failed to gain recognition from India, and finally withdrew from the $19.5 billion semiconductor project in cooperation with India's Vedanta Group, but Tata Group executives announced in a high-profile manner: Tata will invest $900 in mobile components and semiconductor business in the next five years, and it is not difficult to find that Tata Group is confident!It is precisely like this, some foreign media said: The Foxconn era may be over!

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