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In the past, Foxconn was also a key player in the introduction of manufacturing reshoring from the United States. And, Trump has made a lot of promises to Foxconn.
So,Foxconn rushed to the United States with an investment of $40 billion to set up a factory, claiming to build the "eighth wonder" of the United States. What's even more miraculous is that the highest subsidy record for foreign-funded enterprises at that time fell on Foxconn's head. I thought this was a very good deal, but this miracle factory eventually came to an "unfinished business", and Foxconn could only give up setting up a factory in the United States.
Even Gou later admitted that investing in the United States was a failed decision. thought that Foxconn, which had suffered heavy losses in setting up a factory in the United States, would give up follow-up continuous investment, but what was not expected was that Foxconn announced another unexpected action.
According to public sources,Hon Hai Group has increased its investment in FII through its subsidiaries, with an estimated investment of CNY 2.1 billion. The market speculates that the investment may be to expand the funds for operations and increase Hon Hai Group's cloud and AI server capacity in the United States. Whatever the reason, it can't change the fact that they are still willing to increase investment in the United States and continue to take root in the American market.
But the history of the "unfinished" project is vivid, and they still choose to invest at this time, is it because Biden has brought a turnaround at the moment?
The reason for this is that Foxconn's previous failed investment projects, the operating environment and complexity in the United States are one of the main reasons. In addition, a person familiar with the matter also revealed that the two sides have encountered a little trouble with their respective commitments, such as the high subsidies promised have not really been implemented. At the same time, Foxconn has struggled to make further progress in its commitment to local job creation. In short, at the time of Trump, the failure of Foxconn's investment had a great impact.
Now, Biden also wants manufacturing to return to the United States, and Foxconn is following suit. One can't help but wonder if the situation at that time has taken a turn for the better today. But even if there is a turnaround,Personally, I don't think it's a good move for them to re-invest in scale-up.
Many companies that set up factories in the United States know that the local investment and operation in the United States have one thing in common, that is, the high cost, if there is no subsidy from the United States, then the operating costs in the United States are almost all borne by the enterprises themselves. In addition, there are various uncertainties that will limit the progress of investment. TSMC, for example, is mired in a series of external factors such as subsidies, opposition from American labor unions, and a lack of talent.
At this time, they still have to be firm in their plan to invest in the US market, and I am afraid that they will not be able to achieve the efficient situation they imagined. It's just that up to now, what has evolved is not only the phenomenon of reshoring of manufacturing, but also some things behind it. After all, whether it is now or before, the United States has paid close attention to the return of manufacturing. So, let's see which of them can really contribute to the U.S. manufacturing industry if both sides have this will.
As for Foxconn, it is no longer a key player, and whether it can successfully win more money-making opportunities in the United States still depends on the variables behind. What do you think about this?Feel free to leave a comment, like and share this!