Foxconn announced its withdrawal from India, putting the future of hundreds of thousands of employees in jeopardy
You must know that Foxconn is Apple's exclusive foundry, and it has been following Apple for so many years, and it is inextricably linked with Apple, making them extremely profitable. Foxconn is very dedicated and loyal in the face of Apple's various needs.
Some time ago, after Cook took over, Apple began to further optimize its ** chain, and at the same time, because of labor costs and policy uncertainty, the product chain gradually shifted to India step by step, and Foxconn, which has always considered itself to be Apple's "belly", established a new factory in India and moved some production equipment from China to India. As a result, Foxconn's Indian factory in India has slowly been making iPhones in India, and a lot of work has been put into Foxconn's first iPhones.
However, when many people thought that Foxconn was going to leave China and go to India to develop, Foxconn suddenly announced that it would no longer build a factory in India, but would move to China, which is what Foxconn wants to do
Opening a factory in India, Terry Gou is"Own family"？
With China's economic growth, Apple's CEO Tim Cook is well aware of how to reduce production costs and improve production efficiency, so Cook decided to move the production chain to India, on the one hand, to better leverage local advantages, and on the other hand, to expand his own sales in India. Therefore, Foxconn has been calling on suppliers and OEMs in the fruit chain to set up their own factories in India, and as the first "loyal partner" to respond, Foxconn is one of them.
In fact, it is undoubtedly a good thing that Foxconn wants to replicate its glory in China in India. However, after Foxconn set up a factory in India, it found that the Indian employees and their employees in China were completely polarized, not only lazy, unwilling to work, but also without any discipline, and many employees had no work experience at all. Foxconn mass-produced the iPhone in India, which is less than 50% efficient, much to Foxconn's frustration.
Moreover, because some foundry companies and suppliers have established factories in India, India's local industrial chain has not yet been built, and the production of parts for Apple computers and mobile phones also needs to be purchased from China and other countries, which has led to the rise in logistics costs, coupled with India's high tax rate on Foxconn, which has made Foxconn a headache.
In addition to the original foundry Foxconn, Cook also helped Luxshare Precision, Pegatron and other foundries to prevent pinning all hopes on one person. But Foxconn's reaction was fierce: "I took you as a friend, and I came all the way to the United States and India to invest in a factory." ”
Now that Foxconn's factories in India have become worthless, Apple is helping Foxconn's competitors, not crossing the river and tearing down bridges. Even the best person can't help but get angry.
It seems that Cook does not regard Terry Gou and Foxconn as real employees, because he will only think about his own future, and will not care about any feelings.
Take a gamble in Zhengzhou and build another Foxconn.
With India's factories underperforming and in danger of being cut off from Apple's exports, Foxconn had to take unconventional measures to save itself, and the key to this crisis was Foxconn's Zhengzhou, Henan province.
When it comes to Zhengzhou, thinking of the connection between Zhengzhou and Foxconn, many people can't help but be moved. In the 2021 Zhengzhou flood, a serious epidemic broke out in the Foxconn factory, and Zhengzhou City and Foxconn supported each other, deducing a story of mutual support and mutual support between enterprises and enterprises. Zhengzhou assisted Foxconn in fighting floods, recruited employees during the SARS era, and ensured that orders were delivered on time. At the same time, Foxconn also donated a huge amount of money to the affected areas of Zhengzhou during the floods, and also provided a lot of work and work for Zhengzhou and Henan areas. As Liu Yangwei, chairman of Hon Hai, said, "We have all survived so many difficulties, but what can we overcome?"”
At present, Foxconn is in the predicament of being squeezed out by Apple and gradually shrinking in the mainland, and its stock price was once **1047%, beneath the glorious exterior, Hon Hai's situation is not easy. It is precisely in the face of such a predicament that not long ago, Liu Yangwei, chairman of Hon Hai, announced in a high-profile manner that he would build another "Foxconn" in Zhengzhou, Foxconn's "paradise".
Foxconn's three+3 strategic industrial base was officially launched in Zhengzhou, which is one of the areas that Foxconn currently wants to develop most urgently, that is, China, and Foxconn has shifted its focus from Zhengzhou to China. Foxconn didn't move all of its major jobs to India.
Foxconn's headquarters in Zhengzhou is just a series of measures taken in response to the current economic situation and the overall situation, and it is not the first time that Foxconn has done so, and it is inevitable that it will move its headquarters to India. Still, Cook may also be frustrated by Foxconn's renewed investment in Zhengzhou: "Gou is really not one of us. "However, we can't blindly believe in Foxconn's procrastination, but to support Foxconn's own ** business, so that we can be self-sufficient and do not need to rely on others.