As the world's largest foundry giant, Foxconn has become a leader in the industry by relying on Apple's orders. However, when Apple proposed the idea of transferring production capacity, Foxconn chose to follow, ignoring the key factors of its success in the Chinese mainland market. Guo Taiming once proudly said that "he is appreciating the food", but this arrogant attitude eventually led to the payment of the price. Foxconn began to accelerate the transfer of production capacity to the Indian market, but Chinese mainland stopped condoning it and began to review its tax and land issues. Although the final penalty was only a fine of 20,000 yuan, it was actually a warning and gave Foxconn the opportunity and time to adjust. However, Gou chose to fight back, and this series of counterattacks may have an impact on a large number of people.
Foxconn's troubles are not over. As a company that relies on Apple's orders for a living, Foxconn basically concentrates its production capacity in the Chinese mainland market. At its peak, Foxconn provided jobs for more than 1.2 million people, with more than 300,000 employees at the Foxconn campus in Zhengzhou alone. However, according to the latest statistics, the total number of employees in the Chinese mainland market is only 7670,000 people, this sudden decrease in the number of people is related to the transfer of production capacity. But even so, Foxconn is still the most stable existence in the domestic employment market, in addition to the internal employees of the enterprise, but also to drive the activity of the entire ** chain. From the country's point of view, it is natural to hope that Foxconn will stay, which is one of the reasons for its light punishment. If Foxconn withdraws completely, how to solve the employment problem of millions of workers will become a very thorny problem, which will only worsen the employment environment. Mr. Gou, however, doesn't seem to appreciate it and insists on following in Apple's footsteps, setting up a factory in India five years ago. However, the process was not smooth, a large amount of money was invested without satisfactory results, and the overall yield rate was only 50%, which was far from meeting Apple's quality requirements. Therefore, although Foxconn intends to fully transfer production capacity, the execution efficiency is not high, and the total number of employees has just exceeded 50,000. But the plan suggests that the node will take place in 2023. Apple announced that it will ramp up production of the iPhone 16 in India, and may place the development of the iPhone 17 in India. This decision gave Foxconn full confidence. Coupled with the censorship "farce" of the Chinese mainland market, Guo Taiming directly decided to fully transfer production capacity. After announcing an additional $10 billion in investment in November, Foxconn received another $12 billion investment confirmed by India** in December. Such an intensive investment action indicates the acceleration of Foxconn's withdrawal operation. A fine of $20,000 may be too light for many, but we can't comment on the decisions of the top. However, livelihood issues are still worthy of attention.
Foxconn's production capacity is limited, and as Apple begins to diversify orders and shift its factory construction targets to the Indian market, the capacity in the Chinese mainland market will definitely be greatly reduced, and the demand for workers will also drop significantly. With the advancement of industrialization, many jobs have been replaced by machines, and the employment opportunities for those at the bottom have been greatly reduced. If Foxconn really fully transfers production capacity, how to solve the new million unemployed people is definitely a problem that needs to be considered for officials. This also explains why the authorities only fined Foxconn 20,000 yuan from another angle, and did not impose a more severe penalty. Interests are interrelated, and the transgression of either party is not conducive to the maintenance of equilibrium. What should we think about this?
The impact of Foxconn's capacity transfer on a large number of people cannot be ignored. Although the fine of 20,000 yuan may seem relatively light, the message behind it is worth considering. As an employment giant in the Chinese mainland market, Foxconn has a close cooperative relationship with Apple, and its transfer of production capacity will have a huge impact on the Chinese mainland market. In the era when machines replace manpower, the employment opportunities of low-level employees are more difficult, and large-scale evacuation will make the problem of unemployed more prominent. Therefore, the relatively light performance of the official punishment of Foxconn also means that they are concerned about their attitude towards Foxconn and the problem of unemployment. In social and economic development, the game of interests is inevitable. Only on the premise of not losing balance can we maintain social stability and improve the people's living standards. As for how to solve the problems caused by the Foxconn withdrawal, the authorities must seriously think about and take positive actions. Only in this way can we build a good employment environment and let everyone share the dividends of development.