The sanctions came suddenly, and Foxconn Gou Taiming was troubled
Terry Gou's arrogance and Foxconn's early development.
Founded in 1974 by Terry Gou, Hon Hai Group started with the production of plastic products and gradually expanded its business into the electronics industry. In the process of starting a business, Terry Gou showed a strong entrepreneurial spirit and market vision, and constantly looked for new business opportunities. Hon Hai Group's emphasis and investment in technology has also made it a leader in the electronics industry.
Hon Hai Group invests heavily in R&D and devotes itself to technology development every year. The emphasis on technology has enabled Hon Hai Group to remain a leader in the electronics industry. At the same time, as Apple's most important chain, Hon Hai has also received generous dividends from Apple.
However, Foxconn also faces some challenges and problems when building a factory on the African continent. First of all, being based on the African continent means that Foxconn has to face the constraints of the political environment, which has affected Foxconn's development to a certain extent. Secondly, Foxconn's profitability has also been greatly affected, which makes it difficult for Foxconn to achieve sustainable profitability on the African continent. Finally, Foxconn also had problems in its cooperation with Apple, and after Foxconn's order was accepted by Apple, part of it was divided between Luxshare Precision and Pegatron United Technology, which caused trouble to Foxconn.
Apple's Revolution and Huawei's Rise.
With the escalation of friction between China and the United States, the United States began to expand China's semiconductor industry and transfer enterprises to Southeast Asia. Apple has also begun to shift its industry to Southeast Asia under pressure, and even cut off the supply of some Chinese top merchants. At this critical juncture, Huawei launched the Mate60 mobile phone, which was highly praised by the market. At the same time, Apple's iPhone 15 series suffered from a series of problems such as gray lenses and product quality problems. These issues have had a negative impact on Apple's reputation and sales.
The success of Huawei's Mate60 sparked a turning point in China's technological development and also had a huge impact on Apple. What's more, Huawei's success has exposed Foxconn's weaknesses and dependencies. Today, Foxconn has fallen into a difficult situation.
Problems and threats facing Foxconn.
Foxconn suffered losses after relocating to India to build factories and was often restricted by Indian policies. Apple also divided some of the orders to Lucent Precision and Pegatron United Technologies, which made Foxconn's situation even worse. Now, the mainland has conducted an investigation into Foxconn, and according to the usual practice, it has some evidence. Terry Gou issued"Warning", indicating his concern about the investigation and the possible serious consequences.
However, Gou neglected the development and improvement of Chinese mainland's technological production chain. Chinese mainland has established a complete production chain, such as BYD, Jabil, Guanghong Technology and other large foundry enterprises. Huawei's return has also taken shape"China Chain", so that Foxconn's foundry has a certain balance. Even if Foxconn lays off employees, there are many job opportunities for these people. Foxconn has also contacted Huawei several times in the hope that its foundry Mate60 series can be launched, but there has been no substantial progress.
In short, Foxconn is facing serious difficulties and threats. Huawei's rise and Apple's move forced Foxconn to adapt to the new market environment. Gou's arrogance and lack of understanding of Chinese mainland also put him and Foxconn in trouble. However, the development of Chinese mainland in the technology production chain and the rise of Huawei have provided Foxconn with some stability and balance.