The sanctions are menacing, and Gou is worried about Foxconn
Foxconn is a world-renowned electronics foundry giant, founded by Terry Gou, with dozens of industrial parks and more than 1.2 million assembly line workers in Chinese mainland. However, in recent years, Foxconn has encountered a series of difficulties and challenges that have distressed Gou.
In the early days of Foxconn, Terry Gou used his innovative spirit and market acumen to grow Hon Hai Group from a small plastic products manufacturing company to a world leader in the electronics industry. Hon Hai Group is committed to technology research and development, and has performed well in the field of foundry, becoming one of the main leading companies such as Apple.
However, as the Sino-US friction escalated, the United States began to block China's semiconductor industry, forcing Apple to shift its industry to Southeast Asia. This is a huge test for Foxconn, as Apple is its biggest customer. Gou eventually decided to follow Apple's lead and shift some of its production capacity to Southeast Asia.
However, things turned out beyond Gou's expectations. Huawei launched the ** mobile phone Mate60, which received extremely high praise in the market and gave the iPhone 15 series a shot in the arm. At the same time, Apple's products have a series of problems, including gray mirrors, E. coli and other quality problems. Apple's image was seriously affected, and Cook specially visited Lucent Precision in order to save Apple's image, which made Gou very uneasy.
Luxun Precision is a connector manufacturer in Dongguan City, Guangdong Province, China, and one of the main leading companies of Apple. With an in-depth understanding of the connector industry and foresight in the market, Luxun Precision occupies a leading position in the field of connectors. Apple can turn to Luxun Precision for OEM at any time, which is a huge challenge for Foxconn.
Foxconn had a series of problems when building a factory in India, resulting in billions of euros in losses, and Apple also divided some orders to Lucent Precision and Pegatron United Technologies. Foxconn is in trouble.
Mr. Gou has expressed concern about China**'s recent investigation into Foxconn's use of land to build factories and pay taxes. Although Foxconn's parent company, Hon Hai Group, said it would actively cooperate with the investigation, Gou issued it"Hijacking the economy and jobs"of warnings, trying to force the authorities to compromise. However, Chinese mainland's economy already has a well-established production chain, and other large foundries, such as BYD, Jabil and Kuanghong Technology, also have foundry capabilities. Therefore, Foxconn's layoffs will not have a significant impact on Chinese mainland.
Huawei is the key to reversing the decline in China's technology development. Huawei's success is very important to China's tech industry, and without Huawei as a counterbalance, China will appear passive. Therefore, it is significant for Huawei to release the **mobile phone Mate60.
In short, Foxconn is facing a series of challenges. Apple's shift to Lucent Precision and China's investigation into Foxconn have upset Gou. However, China's technology industry is developing rapidly, and the problem facing Foxconn may only be a tactical loss, which other companies in Chinese mainland with OEM capabilities can make up for. Huawei's success has also had a positive impact on China's tech industry.