The Indian consortium is targeting another OEM, and Foxconn is uneasy!
According to India** reports, the Indian consortium Tata Group has contacted Pegatron and expressed its willingness to cooperate with Pegatron to produce iPhones, but this time, many foundries that have set up factories in India have felt a chill, after all, they wanted to annex Wistron under the banner of cooperation.
In 2020, Wistron set up a factory in India, and at that time, Wistron was so ambitious that it even did not hesitate to sell a factory with 80,000 employees to Luxshare Group, which shows how confident Wistron is in the Indian market, but what happened next made Wistron regret it.
After two years of hard work, Wistron finally increased the number of employees in India to 10,000, compared with its factory in Chinese mainland, India can only be regarded as a small factory, but even so, Wistron also suffered, Indian workers for various reasons have stopped work, and even smashed their own production lines, and later was targeted by India's Tata Group.
India** has been hyping, Tata Group intends to cooperate with Wistron to enter the OEM market, and foreign ** have also praised it, thinking that this can help them expand their factories in India, but soon, Wistron realized what it means to return the favor to the other, and in the first half of 2023, Tata Group acquired the Wistron factory in India at a low price.
Soon, Wistron announced that it would withdraw from all operations in India, obviously Wistron did not want to sell the factory in India, but under pressure from India, Wistron had to sell the factory in India, and then close all the factories in India, and in 2023, Apple will only give Wistron 1% of the order, that is, Wistron has withdrawn from the foundry market.
Now, India's Tata Group has contacted Pegatron Group, contacted Pegatron Group in the name of cooperation, and said that after acquiring Wistron's factory, because of the lack of OEM experience, it wanted to cooperate with Pegatron, and then contacted Apple to get the OEM order for iPhone, and everything went smoothly.
However, Tata has made up its mind to be the largest iPhone foundry in India, coupled with the influence of the Indian consortium in the local area, the ultimate goal of Tata Motors and Pegatron Group is likely to be to annex Pegatron Group, after all, the lessons of Flextron are there, and Pegatron may not be spared, but Pegatron Group also has foundries in China, so Pegatron Group has its own way out, and Wistron does not.
In this case, Wistron's three foundries in India have been swallowed up, and Pegatron has smelled the wolf again, as India's largest iPhone foundry, how can Foxconn not be afraid? In fact, Foxconn's investment in India has slowed since the Wistron acquisition, canceling plans for a joint venture with India's Vedanta and then reducing the number of employees at its Indian plant from 70,000 to 50,000.
The reason why India is called the "cemetery of foreign capital" is because India has been using unconventional means to deal with foreign companies, and since 2022, with India's crackdown on Chinese mobile phone companies, more than 1,700 foreign companies registered in India have been deregistered, accounting for 1 3 of the total number of foreign companies in India, once again making India a paradise for foreign investment.
In addition to Foxconn does not dare to invest in India, it was still hyped to build a factory in India "Micron", so far, there is no substantive action in India, but Micron, at the end of last year, suddenly sent a high-level visit to China, hoping to better cooperate with China, some time ago there were more than a dozen American chip companies announced that they would invest 8 billion yuan in Vietnam, which is in stark contrast to their previous praise for India, American companies are obviously also worried about India's investment prospects.