FoxconnAs a world-renowned foundry, it has achieved great success in China. However, five years ago, the company decided to build a massive factory in the United States in order to seek more business opportunities and profits. However, so farFoxconnIn the U.S., the factory project has been slow, with only a few small warehouses built, and none of the planned gigafactories have been completed. This one is called ".FoxconnThe project of "factory production balls" has become the object of ridicule in the United StatesFoxconnAs a result, a lot of market value has been lost. So, what caused this project to fail?
After leaving ChinaFoxconnIn the United States, there was a series of problems. At the beginning, the local villagers initiated a lawsuit because the land acquisition was too low, which consumed a lot of time and resources. FoxconnHuge sums of money and "connections" had to be used to alleviate the problem. However, the bigger problem is still to come, and there is a lack of supporting factories in the surrounding areaFoxconnRaw materials had to be imported from China, resulting in a significant increase in costs. WhileFoxconnAsApplesThe number of orders is highly dependentApplesOther companies are also reluctant to choose this place that lacks supporting facilities to build factories. In the end, the original $10 billion investment in the U.S. factory plan collapsed, and even caused the local people to be nearly $1 billion in debtTerry GouI can't imagine the moment when I was once the richest man.
EverTerry GouHe threatened to "give the mainland food to eat", expressing his disdain for the Chinese market. However, now leaving China will be in recent yearsFoxconnThe status quo is sad. Recently,FoxconnDue to tax issues, it was strictly investigated, and its market value shrank by 32.1 billion overnight. Terry GouSeveral times to visitHuawei, trying to getHuaweito recover the decline in performance, but none of them were able to get a response. In the meantime, leaveFoxconnThe working girl who founded Luxshare Precision seized the opportunity and took overApplesorders, whileXiaomiand other domestic brands have also handed over orders to domestic foundries, such asBYDWait. Let'sTerry GouDeeply remorseful.
In particularFoxconnIn the few years since leaving China, China's economy has risen rapidly, and more and more high-end industries have taken root in China, even losing to developed countries. to biologyTechnologyIn just two years, for example, China has broken through more advanced production processes and tapped a potential market of 328.3 billion. Harvard University, MIT and many other scientific research institutions have confirmed that China's raw materials have a certain potential for delaying aging, and the biological age increases by only 07 years old. However, for a long time, domestic research has been limited to laboratories, and raw materials can only be imported from Europe and the United States at a high price. However, after more than 10 years of rapid development, a million-ton production line has been established in China, and the cost has been reduced by 95%. With the support of a mature industrial chain, domestic products have entered Jingdong and overseas markets with a price of 100 yuan. According to the data, global orders have increased by 422% this year, and the penetration rate of domestic first- and second-tier cities has reached 43%, moving from high-end brands to civilians. In contrast,FoxconnThe U.S. market that it caters to,Applesofiphone15 parts of the production line may even face shutdown, compared to Made in ChinaFoxconnThe product has lost its competitiveness in the first place.
FoxconnDilemma,Terry GouGot bogged down. In the past, when the Zhengzhou factory started, the employee attendance rate was only 10%, in order to attract talentFoxconnHad to raise wages several times. It isFoxconnThe after-effects of the rush to pursue development. After this toss, even if itTerry GouKnowing that we still need to rely on the Chinese market, it is already difficult to turn back. FoxconnThe fate of the company is destined to face challenges and dilemmas again and again.
In short,FoxconnThe failure of the American plant program as wellTerry GouThe dilemma is not accidental. This story reminds us to cherish the existing resources and markets, and to pay attention to our own development strategies, and not to pursue temporary profits lightly. Only by insisting on innovation and keeping pace with the times can we gain a foothold in the highly competitive market and achieve long-term success.
For me personally, this story has taught me the importance of pursuing long-term interests and sustainable development. Whether it is an enterprise or an individual, it should not rely too much on one or two markets or customers, but should seek broader development opportunities and maintain a keen observation and insight into the market and industry. In this way, we can remain competitive and sustainable.