Foxconn's success is inseparable from the wisdom and courage of Terry Gou, who chose to enter the mainland in the tide of reform and opening up, seized the opportunity, and quickly rose to become one of the world's largest OEM giants through the mainland's low-cost labor force and efficient working environment. However, Guo Taiming's attitude towards the mainland is very disappointing, not only did he not cherish the mainland's development opportunities, but he has publicly expressed his disdain and disrespect for the mainland people on many occasions. What's even more embarrassing is that when the mainland encountered economic challenges, Guo Taiming announced that he would accelerate the relocation of factories, which made the mainland's economy even worse. Such an act of ingratitude is destined to incur retribution.
However, Gou's attempt to replicate Foxconn's successful model in India will not be easy. India, as Gou's main battlefield, is far from meeting his expectations. **Foxconn's foundry in India is growing slowly, with fewer than a fraction of the total number of employees at Foxconn's factories on the mainland, according to the report. In addition, frequent strikes, fires and other accidents occurred at the Foxconn factory in India, which affected production efficiency and product quality. These problems not only made Apple's favorability of Foxconn lower, canceled some OEM orders, but also distributed OEM orders for high-end equipment to competitors Pegatron, Lixun Precision and other companies.
The Tata Group, India's largest superconglomerate, has wholly acquired Wistron Infocom's iPhone assembly division. This means that the Tata Group has also entered the Apple ** chain, which has brought a huge impact to Foxconn. The Tata Group not only has local advantages, but also strong capital strength, once it develops, it will become a huge obstacle to Foxconn's development in India.
According to insiders, the top management of the Tata Group has clearly asked the management team of Wistron to double the salary level, make every effort to retain talents, and compete with Foxconn in the OEM field to the end. In addition, Tata Group is also preparing to continue to acquire another major Indian foundry company and Shuo's Apple mobile phone manufacturing unit, which, if successful, would mean that Foxconn's plan to build a base in India will completely fail.
In the face of this crisis, Mr. Gou seems to have begun to realize his mistake and intends to delay plans to move the Foxconn factory on the mainland. He fears that if the plan to build a factory in India fails, the production scale of the mainland Foxconn factory will be reduced, and Apple may lose favor. Therefore, now Guo Taiming wants to come back, and he does not want to give up the mainland Foxconn factory, this hesitant attitude is destined to put him in a more difficult situation.
What happened to Foxconn gives us some food for thought. First, we should not blindly pursue the entry of foreign-funded enterprises, but should remain vigilant and consider long-term interests. The existence of foreign-funded enterprises is not once and for all, and they may leave while satisfying their own interests and market demand, which will bring great trouble to our economy. Second, we need to strengthen independent innovation and cultivate our own technology giants. Foxconn's foundry model relies on a large number of cheap labor, and we cannot only rely on low-cost labor to attract foreign investment, but to improve the scientific and technological content and innovation ability to strengthen China's competitiveness in the industrial chain.
In short, the encounter between Gou and Foxconn is a wake-up call for us. We must stick to the bottom line, cherish the country's development opportunities, abide by business ethics, and repay the society. At the same time, we must always remain vigilant, adhere to independent innovation, and constantly improve the content of science and technology and innovation capabilities, so as to inject new vitality into the development of China's manufacturing industry. Only in this way can we be invincible in the market competition and achieve sustainable economic development.