Guo Taiming counterattacked, and Foxconn's new measures were speculated by foreign media to transfer responsibility
Foxconn's rise in Chinese mainland and Gou's success.
Foxconn has become the world's first OEM company by virtue of its labor dividend and production capacity advantages in Chinese mainland, which has also benefited the Guo family a lot. In the 80s of the last century, Guo Taiming accurately seized the opportunity of the times and focused on the reform and opening up of Chinese mainland. At that time, Chinese mainland had abundant labor resources and low labor costs, which was the dream of Foxconn founder Terry Gou"Fertile soil"。Foxconn chose to set up factories in coastal areas of Chinese mainland, recruiting a large number of young workers, and created"The poor make the product, and the rich make the difference"profit model. Making full use of the mainland's labor dividend is an important cornerstone of Foxconn's rise in China. Foxconn has grown into one of the world's leading technology companies and is a model for Taiwanese companies to invest in the mainland. Thanks to Foxconn's success, Gou has also amassed an extraordinary personal fortune and is at the top of the world's richest list. The brilliance of Foxconn has not only brought them huge benefits, but also a vivid portrayal of the development of Taiwanese enterprises in the mainland market.
Foxconn is facing new challenges in accelerating the transfer of production capacity overseas.
In the face of rising labor costs in China, Foxconn is accelerating the transfer of production capacity to India and other surrounding regions to reduce costs. Despite the uneven quality of the products at the Indian factory, Apple is still asking for expanded production. Recently, some batches of iPhone 15S produced by Foxconn's India factory have had obvious quality issues, such as cracked cases, buttons falling off, etc. This is in stark contrast to Foxconn's lean, stable production. Operational management and quality control of factories in India need to be improved. However, in the face of differences and decoupling between China and the United States, Apple still asked Foxconn to further expand the scale of production capacity in India to reduce dependence on China. This shows Apple's determination to fight back, and it also puts more pressure on Foxconn to optimize the operation of its factory in India. Foxconn is also facing the problem of implementing a five-day work week in Chinese mainland, which is seen as a new impetus for Foxconn to accelerate the transfer of production capacity. Overtime pay is an important source of income for many workers**, and eliminating overtime pay will significantly reduce their earnings and be detrimental to attracting employees. As a result, Foxconn will be forced to accelerate the pace of shifting production capacity to Southeast Asia, where the labor force is more abundant.
Challenges brought about by Foxconn's restructuring and how to deal with them.
With the adjustment of Foxconn's global production capacity layout, its hundreds of thousands of workers in Chinese mainland will face the impact of lower incomes, and at the same time, China's manufacturing industry will also face new development challenges. Foxconn has about 800,000 employees in Chinese mainland, who rely mainly on overtime pay to supplement their income. However, with the implementation of the five-day work week, many workers are only paid a basic salary of 2-3 000 yuan. Against the backdrop of the constant cost of living in big cities, this situation has a big impact on the lives of these workers and is not conducive to attracting and retaining talent. Foxconn's adjustment means that it will systematically adjust its global production capacity layout, and the production capacity of Chinese factories will continue to shift to places with lower labor costs, such as India. These changes will also lead to a further reduction in Foxconn's orders and jobs in Chinese mainland, constituting a new situation in the development of China's manufacturing industry. To cope with these changes, China's manufacturing industry needs to grasp several aspects. First of all, it is necessary to further improve the level of automation in the manufacturing industry and reduce the dependence on labor. Second, it is necessary to intensify the training of high-quality labor force and improve the overall production capacity and quality level. Finally, it is necessary to increase R&D and innovation, improve the added value of products through technological innovation, and occupy a high-end position in the global industrial chain. Only in this way can China's manufacturing industry seize the opportunity in the new round of global industrial transfer and achieve high-quality development.
Summary. As one of the world's largest foundry companies, Foxconn has achieved great success and benefits by accurately utilizing the labor dividend and production capacity advantages of Chinese mainland. However, in the face of rising labor costs in China and changes in the international market environment, Foxconn has to speed up the transfer of production capacity to surrounding areas to reduce costs and adapt to market demand. This situation poses new challenges for workers and manufacturing in Chinese mainland. China's manufacturing industry needs to improve its automation and technological innovation to improve its competitiveness and ensure that it is not marginalized in the global industrial transfer. At the same time, it is also necessary to increase support for talent training and technological innovation to provide strong support for the high-quality development of the manufacturing industry. Only through comprehensive development and transformation can China's manufacturing industry maintain its competitiveness and sustainable development in the world market.