Recently, about retentionMicronwithFoxconnThere is a lot of discussion in the mainland market. On the one hand, the mainland is forMicronInvestmentsThe Xi'an sealing and testing factory did not refuse, and withdrew the dispute with Jinhua, so thatMicronRe-occupy the market at a further pace;On the other hand, with the continuous expansion of the domestic foundry market, many people believe that the mainland is no longer neededMicron。Similar points are madeFoxconnWhen it comes to the discussion of moving to India, many believe that the impact on the mainland market will be minimal. However,FoxconnwithMicronThe move to set up a factory in India has actually had a huge impact on the mainland market. India's top brass said that even if the mainland wants to keep the two companies, it may be too late, because they have already received approval to build factories in India. But personally, I think the Indian side may be overly optimistic. MicronThe ban is urgently needed to avoid losing the mainland market, which still accounts for a quarter of its revenue. WhileFoxconnRevenues in the Indian market were not enough to compensate for losses in the mainland market. MicronThe reason why I chose to set up a factory in India may be due to the fact that I am in IndiaSemiconductorscooperation in the field, pressure on the mainland market, etc. However, due toMicronThe mainland market is still needed, and it is almost impossible to leave the mainland completely. ForFoxconnIn fact, the factory in India is only to prevent itself from being thereApplesChainIt has fallen out of favor, but the Tata Group's support for local manufacturing capabilities is more obvious. FoxconnIt would not be wise to go all out and abandon the mainland market. ConsideredApplesStill dependent on the mainland market,FoxconnIt is also unlikely that there will be a complete evacuation. Therefore, retainMicronwithFoxconnIt is still very important for the mainland market. Now let's find out if we need to keep them.
MicronThere are three reasons why we chose to set up a factory in the mainland. First of all,MicronWith India deepened inSemiconductorsfield of cooperation. At a critical moment,Micronamdand Applied Materials and other companies choose in IndiaInvestmentsThis is the way in which the United States shows its sincerity to IndiaMicronIt's just one of the "pioneers". Secondly,MicronInvestmentsThe timing of setting up the factory happened to be after the mainland imposed a ban on them, and the outside world once thought that it was trueMicronThe move was to put pressure on the mainland market in exchange for the opportunity to lift the ban. Finally, many businesses are starting to diversifyChainstrategy,MicronIt's no exception. However, considerMicronAt present, a quarter of the revenue comes from the mainland market, and it is extremely unlikely that it will leave the mainland market completely. Therefore,MicronThe choice to set up a factory in India is more of a strategy to expand the market than to completely withdraw from the mainland.
In addition, India has certain attractiveness, such as cheap labor and preferential policies. However, compared to the mainland, India has a lot of infrastructure,ChainThere is still a big gap in terms of maturity and support. So, thoughMicronSet up a factory in India, but they can't completely abandon the mainland market. In contrast,MicronIt is more likely to adopt a two-city strategy to achieve better market coverage andChainManage.
1. The importance of the mainland market to Micron
Starting from the company's own interestsMicronWe don't want to lose the mainland market. Currently,MicronNearly a quarter of the revenue comes from the mainland market, which is a significant proportion. Even though the Indian market is growing rapidly, they are currently unable to replace the market share of the continental market. Therefore,MicronWe will continue to strive to maintain our competitiveness in the mainland market to ensure that our own interests are maximized.
2. The potential and demand of the mainland market
continent as the world's largestChipsOne of the consumer markets, with a huge population base and rapid developmentDigital economy。With the rapid adoption of emerging technologies such as 5G and artificial intelligence, the demand for efficient storage and processing power will continue to grow. MicronAs a well-known storeChipsManufacturers are one of the most important companies to meet this demand. RetainMicron, which not only means to ensure the stability of the mainland market**, but also helps to promote the mainland inSemiconductorsfield of development and innovation capabilities.
3. Increase the mainland's control over the industrial chain
Nowadays, the worldSemiconductor industryThe trend of chain shifting to Asia is becoming more and more obvious, especially Chinese mainland as a global oneSemiconductorsOne of the important bases for manufacturing. RetainMicron, helping to strengthen the continent inSemiconductor industryon-chainThe right to speakand control. With the rapid development of technology andSemiconductorsWith the continuous growth of the industry, the importance of the mainland's control of the industrial chain will become increasingly prominent. Therefore, reservedMicronThe business in the mainland helps the mainland in the worldSemiconductorsAchieve a more favorable position in the competition in the market.
1. Growth potential of emerging markets
FoxconnThe decision to move to India does not mean that the mainland market has been completely abandoned. In fact,FoxconnExpanding its business into India is to pursue the growth potential of emerging markets, as well as to diversify risks and enhance the worldChainFlexibility. Although the Indian market is not as large and dynamic as the mainland market, with IndiaEconomyThe rapid development of the industry and the rise of new industries, its potential cannot be ignored.
2. Stabilize the ** chain and reduce risks
With the globeEconomyThe uncertainty increasesChainRisk management is becoming increasingly important. FoxconnBy setting up a factory in India, we can reduce the over-dependence on the mainland market, balance the risk diversification, and ensureChainstability. At the same time,FoxconnThe establishment of a factory in India is also for its inApplesofChainto maintain a competitive advantage.
3. Industrial upgrading and transformation
FoxconnChoosing to set up a factory in India is also a kind of adaptationIndustrial upgradingwith the trend of transformation. India** actively encourages local manufacturing and offers a variety of preferential policies and support measures. FoxconnIn line with this trend, the factory will help expand the Indian market and promote the development of the Indian manufacturing industry. However, considerFoxconnDominant position in the mainland market andApplesDependence on the mainland market, complete withdrawal from the mainland market is unlikely. Therefore, retainFoxconnBusiness in the mainland is also very important.
MicronwithFoxconnThe existence and development of the mainland market is very important for the stability and development of the mainland market. AlthoughMicronwithFoxconnSet up a factory in India, but they are not going to completely abandon the mainland market. Considering that the current mainland market is in storageChipsand demand and potential in the manufacturing sector, retainedMicronwithFoxconnFor the control of the mainland's industrial chain andEconomyDevelopment is also crucial. Retain the operations of both companies in mainland China andInvestments, helping to keep the continent in the worldSemiconductor industryCompetitiveness and status on the chain. Therefore, we need to retain it nowMicronwithFoxconn
To sum up, retainMicronwithFoxconnFor the stability of the mainland market**,EconomyBoth development and industrial chain control are of great significance. AlthoughMicronwithFoxconnSet up factories in India, but they will not completely withdraw from the mainland market. Given the importance and potential of the mainland market, we should continue to maintain cooperation with these two companiesInvestmentsto promote the continent inSemiconductorsand developments in the manufacturing sector.