The once arrogant founder of Foxconn, Terry Gou, has been in trouble lately, and he intends to replicate his achievements in Chinese mainland in India, but the Indian consortium is pressing forward, making Gou feel threatened, thus forcing him to turn around and return to Chinese mainland.
Looking back on Gou's career, when Gou Taiming founded Hon Hai in Taiwan, China, there was no flow at all, and the gap between many Chinese Taiwan foundries that had already grown and grown was very large, and he saw that it was difficult to catch up with his predecessors to continue to develop in Taiwan, China, and at that time, Chinese mainland had just reformed and opened up, and investors were very welcome, so Gou Taiming went to Shenzhen to invest.
Subsequently, Guo Taiming obtained many preferential policies and cheap land in Chinese mainland, Foxconn's rapid development, especially the development of Zhengzhou Foxconn, can be seen how much the mainland helped him to succeed, after Foxconn decided to set up a factory in Zhengzhou, Zhengzhou Foxconn factory completed construction and recruited 300,000 workers in just 2 years.
In contrast, Foxconn set up a factory in India in 2019 to produce iPhones, and it has only been 3 years since thenWith 50,000 employees, it is simply not comparable to the development speed of Chinese mainland.
Foxconn's factory in India is still facing many troubles, repeated fires, workers often stop work, workers are unwilling to work overtime, low production efficiency, and the yield rate of the iPhone produced is as low as 50%, which has caused Foxconn to suffer huge losses, and now Gou Taiming feels even more threatened by the hegemony of the Indian consortium.
Wistron, which went to India with Foxconn to set up a factory, only had 10,000 workers in 2 years of development, and was targeted by the Indian consortium, and finally Wistron was forced to sell itself to the Indian consortium.
However, the Indian consortium did not stop there, a few days ago it was reported that the Indian consortium plans to acquire another foundry Pegatron factory set up in India, considering the influence of the Indian consortium in the local area, I am afraid that Pegatron will eventually be doomed, and being forced to sell itself will be the final outcome.
Compared with Wistron and Pegatron, India's Foxconn is larger, and it is regarded as fat by the Indian consortium, and after other foundries have been acquired, Foxconn will inevitably be acquired in the future, which is precisely the result of Gou's worries, which has made Gou hesitate to invest in India.
In contrast, Foxconn, Wistron, Pegatron in Chinese mainland development scale was much larger, Wistron factory in Chinese mainland once reached 80,000 people, while Wistron still has the dominant power of the factory, the comparison can be seen that these Taiwanese foundries in Chinese mainland received preferential treatment.
It is the encounter in India that makes these foundry companies fully realize the superiority of Chinese mainland, and Guo Taiming, who once threatened to give the mainland food, also bowed his head, and Foxconn set up a new business headquarters in Zhengzhou Foxconn earlier, showing that Guo Taiming has refocused his career on Chinese mainland.
However, now Chinese mainland has a complete industrial chain, similar to Foxconn's foundries such as BYD, Luxshare Precision, etc. have risen, these local foundries can completely replace Foxconn, Luxshare Precision also got Apple's highest-end iPhone15Pro Max order, proving that Luxshare Precision is not inferior to Foxconn in terms of technology, and the demand for Foxconn is not as good as before.
This is the time has changed, Foxconn thinks that Made in China is inseparable from it, but the success of Made in China is the result of the joint efforts of enterprises in many industries, Foxconn thinks that it is extremely important, and looks down on itself, in the face of market changes and India's experience, perhaps Terry Gou has regretted it.