Foxconn founder Terry Gou had ambitious forays into the Indian market in an attempt to replicate the huge success achieved in Chinese mainland. However, the hot pursuit of the Indian consortium made Gou feel a huge threat, and eventually forced him to return to Chinese mainland. Looking back at Gou's entrepreneurial journey, the Hon Hai he founded in Taiwan, China, was not outstanding at the beginning, and there is a huge gap compared to the many foundries that have grown and grown in Taiwan. Gou realizes that it will be difficult for further development in Taiwan to catch up with the achievements of his predecessors. At the same time, Chinese mainland is undergoing reform and opening up, which is very welcoming to investors. So, Guo Taiming decided to invest in Shenzhen. In Chinese mainland, Gou received many preferential policies and cheap land support, Foxconn grew rapidly, especially the development of Zhengzhou Foxconn showed that Chinese mainland has greatly helped him to succeed. The Foxconn plant in Zhengzhou took only two years to complete construction and recruit 300,000 workers. Comparatively speaking, Foxconn set up a factory in India in 2019 and only has 3With 50,000 employees, it's a far cry from the pace of development in Chinese mainland. Not only that, Foxconn's factories in India also faced many problems, such as frequent fires, worker strikes, workers' reluctance to work overtime, low production efficiency, and the yield rate of iPhones was as low as 50%, which caused Foxconn to suffer huge losses. Now, the Indian consortium is chasing Foxconn, and Wistron, a company that entered the Indian market with Foxconn, has also been forced to sell itself to the Indian consortium. After the loss of the Indian factory, Wistron received only 1% of the orders from Apple, which can be said to have almost lost its position on the Apple ** chain. And there is news that the Indian consortium is also planning to acquire another foundry, Pegatron's factory in India. Faced with the threat of Indian conglomerates, Foxconn, as a larger OEM, has inevitably become their target. After other foundries have been acquired one after another, Foxconn is likely to be unable to avoid the fate of being acquired in the future. This is exactly what Mr. Gou feared and made him hesitant to invest in India. In contrast, Foxconn, Wistron and Pegatron have a larger presence in Chinese mainland, with Wistron's Chinese mainland factory at one point employing 80,000 people and still maintaining its ownership. It can be seen that these Taiwanese foundries have received more preferential policy support in Chinese mainland. In fact, Chinese mainland now has a complete industrial chain, and local foundries such as BYD and Luxshare Precision have risen and can completely replace Foxconn. Luxshare Precision also received an order for Apple's highest-end iPhone 15 Pro Max, proving that it is not inferior to Foxconn in terms of technology. Comparatively speaking, Foxconn's demand is not as good as in the past. This change has made Foxconn realize that the success of Made in China is the result of the joint efforts of enterprises in multiple industries, not the credit of Foxconn alone. Foxconn overestimated its own importance and lacked a response to market changes and what it was doing in India. Perhaps, Terry Gou has regretted it now.
Gou once wanted to replicate the brilliant achievements made in Chinese mainland and entered the Indian market with hope. However, the facts tell him that success does not come easily. Recalling the Hon Hai Company founded in Taiwan, China, Guo Taiming deeply realized that compared with the already developed and developed Taiwanese foundry, there is still a big gap in his corporate strength. Unfortunately, the development of Taiwan is no longer so competitive, and Chinese mainland is moving towards reform and opening up, and it is becoming a popular choice for investors from all over the world. Therefore, Guo Taiming made up his mind to come to Chinese mainland to seek new development opportunities. He was supported by many preferential policies, obtained cheap land and other resources, and Foxconn rose rapidly. Especially in Zhengzhou, Foxconn's rapid development is remarkable. In just two years, the Zhengzhou Foxconn factory rose to prominence, absorbing 300,000 workers. In comparison, the Foxconn factory in India has only made 3 in the past 4 years50,000 employees. However, in India, Foxconn faced a series of problems: frequent fires, worker strikes, workers' reluctance to work overtime, low production efficiency, and low product yields. These problems have caused Foxconn to suffer huge losses, and Gou is also full of worries about the future.
Not only Foxconn, but Wistron, which entered the Indian market with it, was also hunted by Indian consortiums. As a partner of Foxconn, Wistron took only two years to absorb 10,000 workers and occupy an important position on Apple's ** chain, however, the Indian consortium found its value and forced it to **. After Wistron lost its factory in India, it received only 1% of orders from Apple. From this point, it can be seen that the Indian consortium has such a strong control over Wistron. According to rumors, the Indian consortium is also planning to acquire another foundry, Pegatron's factory in India. As a result, Foxconn faces the fate of being acquired, which makes Gou even more hesitant to invest in India.
In contrast, Foxconn, Wistron and Pegatron have a much larger presence in Chinese mainland. Wistron once employed 80,000 people in Chinese mainland and remains the dominant plant. These foundry enterprises have received more preferential policies and support in Chinese mainland and have become an indispensable part of the industrial chain in Chinese mainland. Now Chinese mainland already has a complete industrial chain, local foundries such as BYD, Luxshare Precision, etc. have risen, and are not inferior to Foxconn in terms of technology. Luxshare Precision also received an order from Apple's highest-end iPhone 15 Pro Max, further proving its strength. In contrast, Foxconn's demand has declined. Foxconn mistakenly believes that Chinese manufacturing is inseparable from it and overestimates its own importance. However, the success of China's manufacturing industry is the result of the joint efforts of many companies, not just Foxconn. Faced with changes in the market and the difficulties in India, Gou may have realized this, and he may regret his decision.
Foxconn founder Terry Gou had intended to replicate his success in Chinese mainland in India, but the Indian consortium's hot pursuit made him feel a huge threat, forcing him to turn around and return to Chinese mainland. Looking back on Gou's entrepreneurial journey, he realized that the development of Taiwan could no longer catch up with the achievements of his predecessors, and the reform and opening up of Chinese mainland provided him with huge opportunities. In Chinese mainland, Foxconn has risen rapidly, while its development in India is facing many problems and difficulties. At the same time, the rise of local foundries in Chinese mainland has reduced demand for Foxconn, and Gou has become hesitant to invest in India. Foxconn's experience and Gou's hesitation further highlight Chinese mainland's advantages as a global manufacturing hub, as well as the preferential treatment and support that local OEMs receive in Chinese mainland. This is also a lesson for Foxconn to overestimate its own importance, they mistakenly believe that Made in China is inseparable from them, in fact, the success of Made in China is the result of the joint efforts of multiple enterprises. Gou may have regretted his decision, but in any case, Chinese mainland, as a global manufacturing hub, will continue to grow and provide opportunities and support for more businesses.