Foxconn, as a global leader in foundry factories, once attracted much attention. With superior manufacturing technology and large scale, Foxconn has established multiple production bases around the world. However, in 2020, Foxconn's overseas foundry factories suffered heavy losses, reaching nearly $10 billion. Faced with huge losses, Gou is eager to turn the business back to the mainland. However, public sentiment and the attitude of the country's emerging giants became a problem he had to overcome.
As the core of Foxconn's OEM mission, Apple products have always been one of its important revenues. However, as Foxconn faces overseas losses, Apple has also begun to actively look for new foundry partners to reduce its dependence on Foxconn. The OEM task of AirPods has been handed over to Lixun Precision, and the OEM work of the 2020 version of iPad has also been assigned to BYD. Foxconn and TSMC seem to have forgotten their gratitude, and after a difficult situation in India two years ago, Foxconn even had to return to the mainland to recruit workers while offering incentives to boost production capacity. This series of events has caused people to wonder who is giving food to whom
BYD, a company that initially produced mobile phone batteries and chargers, has gradually entered the automobile manufacturing industry since it acquired Qinchuan Automobile in 2003. Today, BYD is not only an automaker, but also a popular OEM.
The partnership between BYD and Huawei is a case in point. In the past, Flex and Huawei had a disagreement, which led to the seizure of hundreds of millions of materials, and finally Huawei transferred the order to BYD, thus establishing a close partnership between the two parties. In addition, BYD also maintains stable customer relationships with mobile phone giants such as Nokia, Xiaomi, and Samsung. Therefore, even if Foxconn returns to the mainland, the impact on BYD may be limited.
BYD's foundry capabilities should not be underestimated. Its experience in the field of mobile phone batteries and chargers has made it a place in the foundry business. At the same time, BYD's product line is also expanding, from mobile phones to automobiles, new energy and other fields. This diversified development strategy provides the possibility for BYD to obtain more OEM orders in different fields.
BYD and Foxconn represent OEM factories of different eras, each exuding great strength and potential. Foxconn was once brilliant, but with the rise of emerging giants and the intensification of competition in the foundry industry, Foxconn is facing unprecedented difficulties. BYD, on the other hand, has gradually emerged as a new foundry giant with its strong foundry capabilities and diversified product lines.
Although Foxconn is eager to return to the mainland, BYD will not agree without hesitation. After all, Foxconn's return means that more opportunities for large orders may be lost, while BYD is trying to gain more market share and partners. BYD's partnerships with mobile phone giants such as Huawei, Nokia, and Xiaomi have brought them a steady stream of customers**, which has earned BYD a place in the fierce competition in the OEM industry.
The competition between Foxconn and BYD is just the tip of the iceberg in the foundry business. With the increase of global foundry factories and the intensification of competition, the competition in the foundry business will become more and more fierce. In this new competitive landscape, it remains to be seen who will stand out in the foundry field.
The competition of foundry business is not only a competition of technical strength, but also a test of the cooperative relationship between enterprises. Strong foundry capabilities, stable customer relationships, and market expansion capabilities are all important factors for an OEM to obtain orders and maintain a competitive advantage.
At the same time, new technologies and new needs will also bring new opportunities and challenges to the foundry business. For example, the rapid development of new energy vehicles, artificial intelligence and other fields will put forward higher requirements for the OEM business. OEM companies need to continuously expand their technical capabilities and pay attention to the cutting-edge trends of the industry in order to be invincible in the competition.
In short, Foxconn and BYD represent foundry factories of different eras, each facing different challenges and opportunities. In the era of increasingly fierce competition in the foundry business, only enterprises that continue to innovate and adapt to market demand can stand out in the fierce competition.