Terry Gou counterattacked, Foxconn's new regulations may change the fate of mainland factories
Foxconn, a global leader in the electronics foundry industry.
As the world's leading manufacturer of electronic products, Foxconn has made remarkable achievements in the Chinese market. But the news that its founder, Terry Gou, plans to transfer up to $300 billion of production capacity from Chinese mainland to India is like a powerful nuclear bomb, which immediately caused an uproar in the global technology community.
For a long time, Foxconn has been at the forefront of the development of the world's manufacturing industry, and its success is largely due to Chinese mainland's abundant labor resources, perfect industrial supporting system and superior infrastructure. At its best, the company, which has 1.2 million employees and an annual operating income of more than 500 billion yuan, can be said to be smooth sailing in the Chinese market.
Behind prosperity are dangers lurk. Problems such as long working hours and tedious work on the assembly line began to surface, plaguing many Foxconn employees. What is even more worrying is that Foxconn's support for all sectors of society does not seem to be appreciated. Guo Taiming once arrogantly and rudely said that Foxconn set up a factory in Chinese mainland out of goodwill, and sincerely thanked the mainland market for providing it with such superior conditions. When the United States imposed sanctions, Foxconn ruthlessly severed its supply partnership with Huawei.
At its peak, Foxconn's annual revenue exceeded 500 billion yuan.
At the peak of the Chinese mainland market, the brilliant Foxconn's annual revenue exceeded 500 billion yuan (6.).400 million US dollars), and the total number of employees has even reached a staggering more than 1.2 million, ranking among the world's top 500. Sadly, Chairman Terry Gou does not seem to feel the country's ardent hope and care, and he is ashamed to say that Foxconn has provided survival for the mainland over the years"Rice bowls"！
When"Apples"When the well-known brand signaled that it would turn to the Indian market, Foxconn seized the opportunity to take the lead in building a large-scale factory in India, and intends to transfer production worth 300 billion yuan to India. Immediately afterwards, the news of an in-depth investigation of Foxconn began to circulate in China, which undoubtedly sounded the alarm for Foxconn. Unfortunately, this move did not attract enough attention from Foxconn, and it was eventually counterattacked. Guo Taiming solemnly announced that Foxconn will invest 11 billion yuan again to build a new assembly plant in India, and foreign media accused: It is clear that he wants to leave us to eat a big pot of rice!
Prior to this, Foxconn had planned to transfer 300 billion yuan worth of production to the Indian market. However, this plan has not been fully realized, mainly due to the fact that there are many problems in the production conditions and infrastructure of the Indian market, which cannot meet Foxconn's growing production needs. At the same time, the purchasing power of consumers in the Indian market is relatively weak, and the market potential has not reached the expected size. Surprisingly, Mr. Terry Gou once again publicly stated that Foxconn will invest another 11 billion yuan to build a new assembly plant in India, a figure that is undoubtedly staggering and simply puts all the blame on us!
In fact, Foxconn already has a certain commercial base in the Indian market. Not long ago, Foxconn signed an important agreement with India** to establish a large-scale electronic product manufacturing center in India to meet the growing demand for various electronic products in the Indian market. In addition, India** has introduced a series of strong incentives to attract more foreign companies to invest in India.
Mr. Gou has begun to react.
According to Foxconn's planned strategy, the company is in the early stages of shifting $300 billion of production from China to India. Some time ago, we noticed that some areas of the once popular Foxconn Industrial Park have changed, and the number of people has decreased significantly.
In this case, there are reports that Foxconn may be under investigation, which is likely to be a sign of strengthening management and control. However, Foxconn founder Terry Gou does not seem to have taken these issues to heart, but has taken countermeasures. A few days ago, Foxconn's parent company, Hongmeng Group, announced that it would invest about $11 billion to build a new assembly plant in India. According to reliable sources, the main purpose of this investment is to increase Foxconn's iPhone assembly capacity in India.
It is worth noting that some time ago, Foxconn only invested 3Just a few months after $500 million to open a new factory, Foxconn moved again to increase investment. Clearly, the world-renowned electronics manufacturer is determined to further expand its activities in India by significantly advancing the capacity transfer process.
In the eyes of foreign **, Foxconn's behavior is very harsh and can almost be used"I don't even want to let the pot"to describe. As sales of Apple's products stabilize, and even under the pressure of Huawei's mobile phone market recovery, Apple's production capacity is likely to decline. Therefore, Foxconn's additional production line in India will inevitably lead to a decline in China's production capacity. From the group's point of view, Foxconn has actually decided to continue to increase its investment, with no room for manoeuvre. But even if Foxconn wants to leave, we will gladly send it away. But if it regrets it later and wants to come back, I am afraid it will not be easy to regain the recognition of domestic investors and consumers.
Apple is also beginning to consider the possibility of changing the ** chain.
In addition, due to the pressure of the United States ** on Chinese mainland companies, including Huawei, Apple has also begun to consider adjusting the ** chain to diversify risks. In keeping with Apple, Foxconn Industries (Foxconn) has also responded by accelerating its own investments in places like India and has been working to build new factories in hopes of moving mature production capacity out of Chinese mainland.
Recently, Foxconn's parent company, Hon Hai Precision Industry Co., Ltd., officially announced that Foxconn will invest up to 11 billion yuan in India to build a new assembly and production base, mainly for the development and production of high-end products such as iPhone series. It is worth mentioning that this move was made by Foxconn some time ago$500 million to take root in India and make other major investments there.
It is understood that Foxconn is committed to successfully transferring $300 billion of production capacity from Chinese mainland to India to ensure that Apple's growing consumer demand is met. There is no doubt that for Foxconn, this will inevitably lead to a significant reduction in the scale of production and the number of workers in Chinese mainland, and may even lead to the closure of some factories.
Regarding this issue, foreign media unceremoniously pointed out that Foxconn's move was undoubtedly a decision made in a wine glass, but at the same time, it also ruined the dinner in the glass. The reason is that Apple's sales have not expanded as expected, and Huawei and its peers in Chinese mainland are likely to compete fiercely. Foxconn's insistence on increasing production in India will naturally have a negative impact on production capacity in Chinese mainland. It's like Foxconn eating enough in the Chinese mainland market, but crushing the food in the bowl and not giving itself the slightest room to maneuver.
In fact, Foxconn's decision is quite short-sighted, and indeed ignores the huge potential and advantages of the Chinese mainland market. Taking the labor market as an example, Chinese mainland has a large number of high-quality labor force with a strong foundation and relatively low wage costs. This solid foundation is Foxconn's main competitiveness in the field of electronics manufacturing, and it is also the main competitiveness of Foxconn's development from scratch and prosperity in Chinese mainland.
The pot should also be brought out"。
According to foreign ** analysis, the resolution was praised as:"Ended responsibility for the whole situation"。This is likely because Foxconn has firmly and deeply increased its investment in cutting-edge technologies such as artificial intelligence during the critical period of global manufacturing development, which undoubtedly shows Gou's insight into the future development direction of the industry, as well as his early response and determination to the development of the industry.
In today's era of information updates, companies must have strong innovation and exploration capabilities if they want to achieve long-term development and remain competitive. Gou's decision to significantly increase investment in artificial intelligence and high-tech fields is not only a profound change in the previous business model, but also a comprehensive reflection and adjustment of the future industrial pattern. This decision fully proves Foxconn's deep understanding of the future trend of digitalization and intelligence, and also clarifies the direction for the development of the global manufacturing industry.
However, any major decision is fraught with twists and turns. If Foxconn wants to strengthen research in areas such as artificial intelligence, it must face unprecedented pressure and difficulties. First of all, in the high-tech field, the competition is extremely cruel, and a lot of R&D resources need to be invested to enhance the innovation strength;Secondly, in the process of digital and intelligent transformation, it may be necessary to make profound adjustments to the existing industrial structure, which is undoubtedly a severe challenge for enterprises.
In this process, Gou's leadership style and team execution will face unprecedented tests. Whether he can successfully lead Foxconn through this huge change will directly affect the company's future destiny. In addition, the attention of Gou's counterattack will also reach an unprecedented high, and his decisions and response strategies will have a significant and far-reaching impact on the global manufacturing industry.
From Foxconn's strategic adjustment, we can see the impact of the global economic outlook and the international political environment on corporate decision-making. Foxconn's investment and expansion plans in India are a direct response to changes in the global market. However, as Apple and other major customers reorient their strategies, Foxconn has had to re-examine its global operations, especially in two key markets, China and India.
It should also be noted that these changes at Foxconn further highlight the new trends in Chinese mainland's manufacturing industry. With the rapid growth of domestic enterprises such as BYD and Lucent Precision, Chinese mainland has not only taken on the role of global manufacturing"The world's factory"and is gradually shifting to the production of high-tech, high value-added products. The rise of these companies has not only weakened its dependence on traditional manufacturers such as Foxconn, but also strengthened China's competitiveness in the global ** chain.
For Gou and Foxconn, this change is both a serious challenge and a rare opportunity. Despite changes in the market and political environment, both companies have endless possibilities to reposition their strategies and find new growth opportunities. In the current context of global economic integration, enterprises must have a high degree of flexibility and adaptability in order to gain a foothold and continue to develop in the cutthroat market competition.
At the end of the day, Foxconn's future direction and role in the global market will undoubtedly be influenced by how the company responds to these external challenges, which is key to the company's ability to effectively capitalize on emerging market opportunities. In an era of rapid technological innovation and deepening global economic restructuring, the future of Foxconn and other similar companies will be multifaceted and full of unknowns. The decisions of these companies will not only affect their own development trajectories, but will also have a profound impact on the global ** chain and production model.