Since Gou Taiming crossed the strait in 1988 and went to Chinese mainland to invest and build factories, in more than 30 years, Foxconn has grown from a small workshop with only a few dozen people to an OEM giant with millions of employees in the mainland, solving the employment problem of millions of people and making great contributions to the development of China's manufacturing economy.
Although Gou's documentary on the 30th anniversary of Foxconn's founding claims that the two sides of the strait are of the same language and species, Foxconn's investment in Shenzhen is stepping on the cusp of China's opening up to the outside world, and without millions of migrant workers in Chinese mainland, Foxconn cannot have such a large scale. Regardless of whether Guo Taiming's remarks are sincere or not, he once made a lot of nonsense on the TV program on the other side of the strait, saying that he was "rewarding and eating" for mainlanders.
As for Guo Taiming, many people will question his vague cross-strait attitude, and some people will angrily denounce him as a businessman. However, one thing is certain, that is, as a successful businessman, Guo Taiming is all profit-seeking, and for him and the Foxconn he founded, making money is naturally the primary purpose.
At present, Foxconn attaches great importance to the potential of the Indian market and has invested in building a factory in India with Apple. In addition, Foxconn has suffered many setbacks in the mainland recently, and Gou's personal political career has also been greatly affected, so Gou simply stopped pretending and began to fight back, and Foxconn is also accelerating the "withdrawal" from Chinese mainland and going to India.
As an enterprise with nearly one million employees, what impact will Foxconn's accelerated withdrawal have on Chinese mainland and even the global manufacturing industry chain?
Foxconn accelerated its "withdrawal" from the mainland
As we all know, India has an unusually large population base, and has always maintained a fairly high GDP growth rate in recent years, for Apple, this is really the "next Chinese market", such a huge consumption potential, just the next profit growth point that Cook is looking for.
In addition, India's labor population is abundant and labor costs are low, and the local production of Apple's iPhones and other electronic products will undoubtedly greatly reduce production costs and is expected to further depress Apple's market**, whether it is for Foxconn to reduce foundry costs, or Apple to increase sales profits, which is a major positive. Therefore, Apple has reached a cooperation intention with India, and its "royal foundries" such as Foxconn and Pegatron have also invested in local factories. It is reported that Apple plans to significantly increase production capacity in India, with the goal of annual production reaching 50 million units, and once the goal is reached, India-made iPhones will account for 20% of the world's iPhone production capacity.
In addition, according to relevant sources, Apple will also start the research and development of new iPhone 17 mobile phones in India, and after the research and development is completed, it will be directly put into production in the local factory in India. You know, before our common iPhone, the back logo is "designed by apple in California, assembled in China", iPhone mobile phone research and development and design, has always been done in the United States headquarters, but now, Apple actually began to prepare for the development of new products in India, enough to show that Apple attaches great importance to the Indian market.
After all, according to the OEM cooperation agreement between Foxconn and Apple, out of strict control of product quality, many devices on Foxconn's iPhone production line are purchased by Apple out of pocket, although it is operated and produced by Foxconn, but it is still under Apple's supervision. Therefore, once Apple decides to move out of production capacity, Foxconn does not have any substantive say on this issue.
Therefore, the more resolute Apple is on the issue of setting up factories and increasing production in India, Foxconn is more active, after all, for Foxconn, if it does not cooperate with Apple's capacity planning, Foxconn is likely to lose a lot of Apple orders, after all, Apple's "royal foundry" is not only Foxconn, Wistron, Pegatron, Luxshare, and India's Tata, all of them are eyeing up, Foxconn must cooperate with Apple to "withdraw" Chinese mainland if it wants to win Apple's "consistent" favor.
In just one month, Foxconn has twice announced additional investment in India, one with an investment of 11 billion yuan, and one with an investment of 12 billion, up to 23 billion yuan, which will be directly used to expand the production of iPhones in India.
The impact of Foxconn's "withdrawal".
As a large OEM factory with millions of employees at its peak, Foxconn's accelerated withdrawal will inevitably have a serious impact on domestic employment. At least, there is no electronic foundry comparable to Foxconn in terms of volume, and in addition to Foxconn, other electronic processing plants, whether they are Taiwanese, American or Chinese-funded enterprises, have many Southeast Asian regions such as India and Vietnam, so the large-scale withdrawal of Foxconn's production capacity has brought the threat of unemployment and layoffs to many people in China.
Of course, for Foxconn's investment in India, it should first be determined whether Foxconn will disperse its layout or withdraw completely. If it is the former, then employees in India and the mainland can get a minimum of employment security, of course, under the condition of limited total production capacity, overtime and other income benefits will naturally be greatly reduced, for example, Foxconn has implemented a 5-day 8-hour work system in the mainland, canceling overtime.
No, given that India has taken away a large part of its production capacity, the production capacity of factories on the mainland is limited, there is no overtime, the labor compensation of workers will be greatly reduced, and in the long run, there is no need for Foxconn to maintain a large number of employees. Therefore, whether it is a decentralized layout or a complete withdrawal, Foxconn will inevitably lay off many ordinary employees in the case of limited orders, so as to reduce operating costs, which is basically the general trend.
For the majority of ordinary workers, constantly improve their labor quality and skills is the best choice of "unchanged and changeable", everyone should not waste their youth in the assembly line of the factory, and constantly waste the years in the "bucket into the factory and run", increase their own quality, and be able to use their own place.
Of course, there are not a few domestic big-name mobile phone hardware manufacturers, if the domestic brand can also reach Apple's scale in terms of volume, then the vacant share of electronic foundry will eventually be filled, and the career anxiety of the majority of workers will also be well alleviated.
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