As the world's largest OEM giant, Foxconn has risen by virtue of the labor cost and high efficiency of mainland factories. However, in recent years, Foxconn founder Terry Gou has repeatedly expressed his willingness to move away from mainland factories despite his gratitude, which has aroused widespread attention. However, Gou may have to regret his decision. The recent acquisition of the iPhone assembly division of India's Wistron by the Tata Group, an Indian supergroup, means that Foxconn's foundry position in India is facing serious challenges. In the face of this hunt, Guo Taiming was so anxious that he even considered delaying his plan to move out of the mainland factory. The incident has sparked speculation about the future direction of Foxconn and China's manufacturing industry.
Foxconn's rapid rise is due to the labor costs of mainland factories and the high efficiency of workers. In the early days, labor costs in the mainland were relatively low, just enough to meet the demand for a large number of cheap labor in a labor-intensive industry like Foxconn. At the same time, mainland workers are also known for their high efficiency and conscientiousness, which has made Foxconn favored by Apple as its main OEM company.
However, Mr. Gou seems to have lost his sense of these strengths. He has repeatedly expressed his dissatisfaction in public, saying that building a factory on the mainland is to give mainlanders "food to eat". Such ungrateful statements are deeply regrettable.
In recent years, Mr. Gou has repeatedly announced that he will accelerate the relocation of Foxconn's mainland factories in an attempt to focus on development in different regions. It is understood that India is the main battlefield of Gou, and he plans to build it into the world's largest foundry base. However, Foxconn's development in India has been slow, and the scale of the factory is far from comparable to that of factories on the mainland. At the same time, India's production efficiency is low, and there are frequent safety accidents such as strikes and fires, which has brought a major crisis to Apple's ** chain.
This situation has led to a decrease in Apple's favorability towards Foxconn, and it has gradually allocated OEM orders to Pegatron, a company that competes with Foxconn, and Luxshare Precision. It was this series of setbacks and mistakes that made Gou Taiming begin to waver in his plan to transfer the factory.
The Tata Group, India's largest super-conglomerate, recently acquired India's Wistron Infocom's iPhone assembly division. This move means that the Tata Group has also entered the Apple ** chain. Obviously, this has caused a huge shock to Foxconn. The Tata Group has both local advantages and strong capital strength, and once it develops, Foxconn's development in India will face great difficulties. In addition, Tata Group is interested in acquiring another Indian OEM company and Shuo's Apple mobile phone manufacturing unit, which, if successful, would put down Gou's plan to make India a new home base for Foxconn.
In this regard, Guo Taiming is anxious. According to the news, the top management of the Tata Group has made it clear that the salary level of the management team of the former Wistron Information Communication Company will be increased, and all efforts will be made to retain talents and compete for Foxconn's position in the OEM field. The move further exacerbated Mr. Gou's unease. He may have realized that if Foxconn's plan to build a factory in India fails, the size of the mainland factory will be reduced, and Apple may lose favor completely. Now Mr. Gou seems to be in a dilemma, wanting to turn back and not wanting to move out of the mainland factory.
As a representative enterprise in China, Foxconn has always been the pride and benchmark of China's manufacturing industry. However, Mr. Gou's dissatisfaction with the mainland and frequent factory relocation plans have cast a shadow over that image. The hunt of the Tata Group made Gou even more anxious. For China's manufacturing industry, this is a rare warning. We should learn the lessons of this incident and accelerate the development of our own manufacturing industry and cultivate our own tech giants to cope with the uncertainty of the future. Only in this way can we truly get rid of our dependence on foreign enterprises, maintain the ability of independent innovation, and maintain the core competitiveness of the manufacturing industry. Let's work together to contribute our strength to the future of China's manufacturing industry!