The 140 billion yuan project will be withdrawnGuo Taiming announced that foreign media said that Modi was making it bigger
Once Huawei's 5G technology is fully ahead, the United States will begin to unreasonably suppress Huawei and other domestic manufacturers.
Apple and other U.S. companies are beginning to change their chains and reduce their reliance on domestic manufacturing, setting their sights not only on the emerging Indian market, but also on India and other Southeast Asian countries with cheap labor.
Foxconn and other companies, as Apple's main foundry, naturally followed Apple's lead into Southeast Asia, not only building factories in India to produce old iPhones and other products, but also withdrawing part of the industrial chain.
Data shows that after Apple entered India and other Southeast Asian regions, Foxconn laid off about 300,000 domestic workers and transferred 300 billion yuan of production capacity.
In addition, both Apple and Foxconn have said that they will produce **iPhone and other products in India, which fully demonstrates their determination to take root in the Indian market.
In addition to shifting manufacturing to the Indian market, Foxconn has also analyzed the chip manufacturing industry and jointly built mature chip factories with well-known local enterprises, with an investment scale of 29.5 billion US dollars, equivalent to more than 140 billion yuan.
The purpose of Foxconn is to increase profits and get rid of it completely"OEM"identity, and Foxconn has been completely to"Technology"Known.
In order to establish a fab with a mature process in India, Foxconn has also established a partnership with STMicroelectronics and licensed the technology.
But unexpectedly, after Guo Taiming went to great lengths to obtain technology licensing, semiconductor equipment, factory planning, etc., the Indian side got in the way, and the promised subsidies were not in place.
Even the fab project could not be approved, which delayed the start of Foxconn's fab investment in India.
Most critically, India has asked Foxconn and other companies to resubmit their applications.
According to people familiar with the matter, India continues to give Foxconn"Opportunity"It was Modi's team that said that Foxconn and other companies are not engaged in integrated circuit manufacturing, but belong to laymen, and hope that Foxconn and other companies will turn to STMicroelectronics to do integrated circuit manufacturing business.
After all, India really wants chip manufacturing and has repeatedly invited TSMC to build factories in India.
However, the reality is not optimistic, STMicroelectronics is only willing to license the technology, and is not willing to invest in India, in this case, even if Foxconn resubmits the application, it is a high probability that it will be rejected.
In addition, India is also looking for support from companies that specialize in tablet products, such as TSMC and STMicroelectronics.
Due to the delay of the project, Foxconn Terry Gou officially announced that on July 10, Hon Hai Group officially announced the termination of the joint venture chip factory project with India's Vedanta Company and removed Hon Hai's name from the sole proprietorship entity.
This means that Foxconn has completely divested and abandoned its 140 billion yuan investment in the joint venture, and the 140 billion yuan semiconductor project has basically come to an end.
Only one foreign media agency said that Modi made a big move, backed down, delayed Foxconn, and did not obtain subsidies and consent for project approval, resulting in the project basically being in a state of miscarriage.
Although Foxconn's early efforts have been successful, the Indian side has also suffered heavy losses, not only a fab project, but also a large number of engineers who were originally going to participate in the project, talents in the field of wafer technology, etc., as well as a large number of jobs and credibility.
Although labor in the Indian market is cheaper, the operating environment is notoriously infamous, and many foreign companies have closed their doors to the Indian market.
For example, Wistron announced its withdrawal from the Indian market, and domestic manufacturers such as Xiaomi OV also suffered losses in the Indian market.
India innocently seized Xiaomi's 4.8 billion assets, Xiaomi clearly said that it was paying patent fees to Qualcomm, but India found other reasons to seize it, which is obvious"Theft"。
The key is that India has always wanted to catch up with China and become an industrial power, but as a result, foreign-funded enterprises are frequently confused, in contrast, China has always had a good business environment, treating domestic and foreign enterprises equally, and has always adhered to the principle of fair and open international cooperation, so that a large number of foreign capital have come to China to build factories for development.
Therefore, after Gou's official announcement, foreign media said that Modi made a big deal out of it, and the Indian side only cared about its immediate interests and was short-sighted, which led to a sharp decline in its own credibility.
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