Foxconn is under tremendous pressure in India, and Gou is feeling a dilemma

Mondo Technology Updated on 2024-01-19

Foxconn boss Terry Gou, who was once invincible, has been in trouble recently, he wants to replicate the success of Chinese mainland in India, but the pressure on Indian companies is increasing, and Gou feels great pressure and eventually has to return to China.

Looking back on Terry Gou's career, Foxconn in Taiwan, China, founded by Terry Gou, was too bad, far behind many foundries in Taiwan, China, and Terry Gou realized that it was almost impossible to catch up with his elders in Taiwan, because at that time China was in the early stage of economic system reform and attracted a large amount of foreign investment, so Terry Gou decided to invest in Shenzhen.

After that, Guo Taiming got a lot of preferential and cheap land in Chinese mainland, and Foxconn's development is very fast, especially Foxconn's development in Zhengzhou, which proves this. Foxconn built a factory in Zhengzhou, and within two years built a new Foxconn in Zhengzhou, and hired 300,000 employees.

In stark contrast, Foxconn set up a factory in India in 2019 to supply foundries for iPhones, but so far it has employed only 35,000 people, far from keeping pace with Chinese mainland growth.

In addition, Foxconn's factory in India has also encountered many problems, frequent fires, frequent strikes by employees, employees are unwilling to work overtime, and insufficient production capacity, resulting in Foxconn's iPhone yield rate of only 50%, which has caused Terry Gou to suffer huge losses, and now, the strength of India's large enterprises has also brought him huge pressure.

Flextron, which came to India with Foxconn, only recruited 10,000 employees after two years of development, but it attracted the attention of the Indian group, and finally Wistron had to sign an agreement with the Indian group, losing the production base in India, and Wistron only got one percent of the order, which made them somewhat comforted.

However, the Indian group has not stopped, and recently there is an Indian group interested in buying a foundry in India, in view of the local power of the Indian group, Pegatron is likely to go bankrupt, and finally can only be forced to **.

Compared with Wistron and Pegatron, India's Foxconn is much larger, and it is also a big cake in the eyes of India's large groups.

In stark contrast, Foxconn, Wistron, Pegatron originally developed more in Chinese mainland, Wistron once had 80,000 employees in Chinese mainland, but Wistron still controlled its own production base, which shows the care that Taiwanese foundries are receiving in Chinese mainland.

The trip to India made those foundries see the advantages of Chinese mainland, and Gou, who once claimed to contribute to the mainland, also bowed his head to Gou, after Foxconn set up its new business center in Zhengzhou, indicating that Gou has shifted its business focus to China.

But now China has formed a complete ** chain, BYD and Luxshare Precision and other Foxconn foundry companies, can replace Foxconn's position, and even Luxshare Precision also won an order for a high-end iPhone 15 Pro Max, which shows that Luxshare Precision's technological level is not worse than Foxconn, so Foxconn does not need them as much as before.

Feng Shui takes turns, Foxconn thinks that without Chinese products, China cannot produce, but Foxconn thinks that he is amazing, overestimates himself, and when Guo Taiming sees the situation in India, he will definitely regret it.

Related Pages