Kunpeng Project
Eat Chinese rice, smash Chinese bowl", some large international companies have joined the ranks of US sanctions against China in recent years, but in the end they have suffered heavy losses, from TSMC to Foxconn, from Apple to Nvidia, such examples have been endless. Today, there is another one, and it is Flex.
Flex is a high-tech company located in Silicon Valley, USA, with a history of more than 50 years. After China's reform and development, Flextronics took the high-speed train of China's economy, actively deployed in China, and achieved good results, and has now grown into one of the leading electronic professional manufacturing service providers.
The cooperation between Huawei and Flex began many years ago and involves a variety of fields, mainly producing some network and terminal products for Huawei. In January 2018, Flex also opened a new factory in Changsha, which is said to be mainly used to manufacture mobile phones for Huawei. In July of that year, the first Huawei mobile phone manufactured by Flex Changsha factory officially rolled off the assembly line, which is the speed of light, which shows that the cooperation between the two sides at that time was very deep and pleasant, and there was a very good mutual trust.
As a result, Huawei has contributed a lot of business revenue to Flex, with orders of up to 2.5 billion yuan per year, and the local ** has also provided Flex with a very favorable policy environment and development space. We can say that the partnership between Huawei and Flex is a mutually beneficial and win-win outcome for both parties. Flex even spent 5 billion yuan to build a production base, which shows that it wanted to hug Huawei's thighs at that time.
However, after 2019, as the U.S. sanctions on Huawei tightened step by step, Flex immediately turned around and directly joined the ranks of sanctions against Huawei, taking the lead in complying with the U.S. ban and refusing to continue to produce mobile phones for Huawei. What's even more unbelievable is that Flex unilaterally terminated the cooperation and needed to pay liquidated damages, but it openly refused to pay, and the spirit of contract that Western companies talk about all day long is completely forgotten when it is their turn.
We have an old saying in China, called adversity to see the truth, once a good partner Flextronic, but when Huawei is in trouble and urgently needs the help of friends, instead of extending a helping hand, it chooses to fall into the well, which really makes Chinese feel cold and even more angry. It's no wonder that when Flex was a scoundrel, Huawei didn't stop doing anything, and directly sent more than 150 trucks to bring back all the inventory and raw materials temporarily stored in Flex, and the two sides completely fell out.
Now, Huawei has returned strongly with self-developed chips and has become the object of competition among various enterprises, all of which want to get a piece of the pie in Huawei's future industrial layout, as long as Huawei gives a few orders, it is enough for them to earn.
On the other hand, Flextronics, the intelligent manufacturing base it built in Changsha, the first phase of the project has been officially put into operation, including 16 production lines, 23 assembly lines, the second phase of the project was basically completed this year, but now it has been directly eliminated by Huawei from the first chain, Changsha project insisted on a month after the supply was cut off, and it has been forced to stop production, the second phase of the project was directly taken over by BYD, and its project in Zhuhai also had to be 3600 million cheap.
Flex finally reaped the consequences.