Recently, Foxconn has invested heavily in expanding production in India, and plans to move 300 billion production capacity out of China and abandon 320,000 employees. Pegatron, which is also dependent on Apple's orders like Foxconn, also announced that it would shut down its production line in Shanghai and prepare to move overseas. This series of ** chain migrations has attracted people's attention and concern.
(1) The Apple market is highly competitive, and the business needs to grow
Against the backdrop of fierce competition in the smartphone market, Apple is facing pressure from competitors such as Huawei. In order to regain market share and achieve business growth, Apple has become an inevitable choice to accelerate its layout in overseas markets.
(2) U.S. policy decoupling accelerates the relocation of the ** chain
Apple's cooperation with China is also facing challenges as the U.S. "decoupling" plan for China's manufacturing industry continues to escalate. In order to reduce risks, Apple has accelerated the transfer of the ** chain to India, Vietnam and other countries and regions to seek new partners.
(3) Overseas transfer can save costs
In the Shanghai area, where Pegatron is located, land costs and labor costs are high, so the evacuation of Shanghai and the relocation to India can also bring cost savings. For Pegatron, moving overseas has become a necessary strategy for economic operations.
In response to the departure of OEMs such as Pegatron and Foxconn, people have begun to worry about the whereabouts of these employees and think about the future of China's manufacturing industry.
The transfer and iterative renewal of low-end manufacturing industry is a necessary stage of economic development. From the United States to Europe and across Asia, this process has been going on all over the world. Therefore, we should not be too obsessed with retaining these manufacturing enterprises, but should accelerate the upgrading of the industrial chain and the cultivation of local brands.
In order to cope with the challenges brought about by the migration of the first chain, China's manufacturing industry needs to accelerate the upgrading of the industrial chain and the cultivation of local brands. For example, with the rise of the new energy vehicle market, the development of the industrial chain of auto parts such as intelligent cockpit, electronic products, and lidar will become a new opportunity to replace brands such as Apple and Tesla.
The migration of the chain is not only a strategic move by Apple, but also a concentrated reflection of the changes in the global economy and the development of the manufacturing industry. In the face of this phenomenon, I think we should look at it from a more macro perspective.
First of all, the migration of low-end manufacturing is not the end of China's manufacturing industry, but the inflection point of industrial chain upgrading and domestic substitution. China's manufacturing industry should take this opportunity as an opportunity to accelerate technological innovation and R&D capabilities, promote industrial upgrading, and continuously improve product added value and core competitiveness.
Secondly, we should pay attention to the cultivation and development of local brands. With the return of Huawei's mobile phone business, Goertek, OFILM and other companies have also received new development opportunities. The rise of local brands will inject new vitality into China's manufacturing industry, driving more employment and economic growth.
At the same time, we should also pay attention to and support those employees who have been affected by the migration of **chain. ** and enterprises should provide career transition training and entrepreneurship support, encourage them to participate in emerging industries and entrepreneurship and innovation, and create more opportunities and value for individuals and society.
In short, the migration of the first chain is a part of the global economic development, and we should respond to the changes with a positive attitude and promote the upgrading and transformation of the manufacturing industry. Only by continuously innovating and enhancing core competitiveness can China's manufacturing industry be invincible in the global economic competition.