He once took action against Huawei and seized 700 million materials, but now it is facing collapse
Huawei's Kirin chip was cut.
Huawei's companies are among the world's top in key areas such as chip design, communication technology, and smartphones, and Huawei's latest Kirin chip design is comparable to Qualcomm's Snapdragon chip series and Apple's A-series chip products, making it the world's top mobile phone SoC chip.
Huawei is also the first 5G communications company in the world to realize 5G calls and commercial use, and its 5G core patented technologies have even surpassed those of a large number of established European and American communications companies such as Qualcomm and Ericsson.
At the same time, Huawei's high-end smartphones have become the top brands of high-end smartphones in the international market, which are almost the same as Apple and Samsung, and the market share and shipments have reached the world's top three levels. It can be said that Huawei has become the leader of high-tech enterprises in China and even in the world.
However, Huawei's rapid development in the fields of integrated circuit design and communication technology in the United States has brought it into its comfort zone and caught up with and surpassed the technological monopoly of the United States, which has naturally caused concern in the United States. In order to curb the development of Chinese technology companies such as Huawei, the United States has put Huawei and other Chinese technology companies on the sanctions list.
The United States not only cut off Huawei's mobile phone electronic components, chips and other products, but also asked TSMC to stop the production of Huawei's Kirin chips, resulting in the extinction of Huawei's Kirin processors, resulting in a decline in Huawei's mobile phone sales, and even directly reducing revenue and profits.
As Huawei has developed more than 20 revenue entities, the pace of fully entering the semiconductor industry chain through the domestic brand mobile phone industry chain has slowed down.
In fact, it was not only TSMC that fell into the ground when Huawei was suppressed by the United States, but also Huawei's very important cooperative company on the ** chain, and Flextronics, the foundry giant from Silicon Valley in the United States, also fell into the ground for Huawei.
Flex's unethical behavior.
In the business world, social justice and ethics have always been seen as crucial concepts. In the dispute between Chinese tech giant Huawei and its ** business Flextronics, these two keywords have been fully reflected. This dispute not only revealed the necessity of business ethics, but also emphasized the surprising value of integrity, and ultimately won the victory of justice.
The story begins with the cooperation between Huawei and Flex.
Flex is a leading provider of reliable materials for Huawei, which it relies on to maintain its global leadership. The difficulty, however, lies in Flex's uncivilized behavior.
Flex not only reneged on the contract signed by the two parties, but also withheld materials that Huawei urgently needed in an attempt to gain personal gain. This behavior not only harms Huawei's interests, but also violates the principles of business ethics. At Huawei, we believe that ethics and integrity are non-negotiable principles in both business and other fields.
The history and impact of Flex's partnership with Huawei.
Founded in 1969, Flex is a multinational company headquartered in Silicon Valley and listed on NASDAQ. It provides manufacturing services for electronic products, including design, engineering, manufacturing, logistics, and more. Its customers include Microsoft, Dell, Nokia, Siemens and other well-known enterprises.
In 1987, Flex entered China and established the world's largest manufacturing center in Zhuhai. Here, it mainly undertakes some of Huawei's foundry projects. It is understood that Flextronics has even undertaken about 40% of Huawei's foundry business, such as Huawei's P30 series products released in early 2019 and laptops launched by Honor in 2018. In 2018, Huawei invested US$2.5 billion in revenue, accounting for about one-tenth of Flex's net profit that year.
The cooperation between Flex and Huawei has undoubtedly brought economic benefits to both parties, and has also promoted technical exchanges and talent training. Flex relies on Huawei's strength and market share in the communications field to consolidate its position and competitiveness in the electronics manufacturing services industry. Huawei, on the other hand, can significantly reduce production costs and risks, and improve product quality and efficiency through the cooperation with Flex.
Flex's hostilities against Huawei.
In 2019, Huawei's mobile phone sales reached a staggering 2400 million units, surpassing Apple to become the world's second largest mobile phone manufacturer. At that time, Huawei and its sub-brand Honor accounted for more than 50% of the national mobile phone market share.
As Huawei's designated foundry, Huawei's relationship with Flex is similar to that between Apple and Foxconn, and Flex receives $2.5 billion in orders from Huawei every year. I didn't expect Flex to really be unfed"White-eyed wolf"When the U.S. issued a ban on Huawei in 2019, Flex cut off all business with Huawei.
If things get to that point, in fact, what Huawei hopes is, in the final analysis, Flex is an American foundry. But Flex shamelessly turned its face and denied people, because none of the Huawei products processed before the US sales ban were distributed, and the total amount of this batch of materials was as high as 700 million!
Not only did Flex not return the materials, but on the contrary threatened:"Under the U.S. Export Control Act, Flex has the right to seize the seized materials"。The implication is that on Chinese soil, we must respect the rules of the United StatesIt's funny!
Ren Zhengfei was outraged at the internal meeting, pointing out that Flextronics was not only falling into the ground, but also wanted to drive us to a dead end, and was our enemy. In the face of this rogue behavior, Huawei took tough measures and immediately dispatched more than 150 large trucks to Flex's factory in Zhuhai"Block the door", asking Flex to return Huawei's products and materials. According to reports, the trucks lined up for 6 kilometers in front of the Flex Gate, and the scene was very shocking!
After many efforts, Huawei finally recovered more than 700 million yuan worth of machinery, equipment and materials. Immediately afterwards, Flex suddenly turned around and sent an open letter to Huawei, expressing its hope to cooperate with Huawei again.
Flex eats its own bitter fruit.
Flex's dishonesty affected high-tech companies in all countries, and a situation of betrayal ensued. In addition to Huawei, Flex has also lost the favor of more domestic companies, orders have plummeted, and the company is in a desperate situation. In order to survive, Flex was forced to sell its foundry in Changsha, China, to BYD, and even replaced its factory in Zhuhai, completely withdrawing from the Chinese market. All of this is the inevitable result of Flex's own doing.
As time went on, Flex's doom didn't end, it intensified. What started as a glamorous company is now in the midst of a serious public relations crisis. Its disloyal and unbelievable behavior was not only exposed in the Huawei incident, but also left deep scars on other strategic partners.
But it didn't end there. After Flex left, other foundry companies filled the gap in a short period of time, and powerful companies such as Foxconn, BYD, and Lucent Precision actively competed in the domestic market. With stable production capacity and a good reputation, these companies have attracted more and more partners, further consolidating their presence in the industry.
In contrast, Flex's situation is becoming more and more miserable. The once busy foundry is now empty and desolate. The company was forced to cut costs and lay off a large number of employees to ease the financial pressure. However, this did not help, and instead accelerated the decline of Flex.
Flex's"Crash"？
However, in addition to external pressures, the company's internal operations were also pushed to the limit. Flex's visionary and insatiable nature was laid bare in the Huawei case, revealing its true colors. This relentless pursuit of profit has led directly to the loss of valuable recognition for itself and its partners.
In addition, silent political pressure haunts Flex like a ghost. The company had to face not only a frenzied market arena, but also a chance to survive in the unpredictable political landscape. Every political turmoil has made Flex's fate even more uncertain.
In fact, this Huawei material incident has become a storm affecting the smartphone field. It has not only brought huge and significant economic losses to Huawei, but also brought a strong negative impact on the entire industry. It is like a wake-up call to the cruelty and injustice of the business community.
What is even more regrettable is that this incident is like a demon mirror, directly exposing the short-sightedness and selfishness of enterprises in the face of interests and moral choices. This is a distressing act, a pursuit of abandoning one's original intention and conscience, and making people deeply worried about the future of the enterprise.
Flex's bankruptcy is not accidental, but an inevitable trend of years of injustice. The power of justice is deeply rooted in the hearts of the people, and Flex's actions are contrary to it. They took back Huawei's materials, deprived Huawei of its right to operate normally, and harmed the commercial interests of a large company. This is an unforgivable mistake.
With the Flex disaster, its financial situation changed dramatically. Flex thought that it could make a huge profit from the above unjust cases and make itself look smart, but it did not expect that justice would be served in the end. With the influx of **, Flex's bad behavior became a big problem, and its partners divested.
Now that Flex is in trouble, Huawei sees the triumph of truth. Huawei wasn't stupid enough to respond to Flex with the same malice. Instead, it has chosen the right direction: to bring the case to light and let the world witness the power of justice. This honesty and strong will eventually won the recognition and support of the public.