The Indian consortium is too greedy to plot! Foxconn may encounter potential risks!
Indian conglomerate Tata said it would make iPhones in India, a move that shocked Foxconn, which means that Foxconn will go to India to build a new factory, which will give India's big groups an opportunity to take advantage of it, because they have forced a contract to acquire a foundry, Vivitar.
Wistron's factory in India was only a year behind Foxconn and took two years to increase the total number of employees to 10,000, while Wistron has 80,000 factories in Chinese mainland, which is too small, but even if it does, it should not be allowed to run away.
In 2022, it was rumored that Wistron would be acquired by the Tata Group, and Wistron had to sell its factory in India in the first quarter of 2023. Some news reports in India said that Flextron voluntarily sold a factory in India, but later Wistron announced all its production bases in India, which highlighted Wistron's reluctance to sell the factory in India, after which Apple only placed a 1% order with Wistron, which means that Wistron has effectively withdrawn from the co-pack.
Wistron's conflict with India also intrigued Foxconn, who also decided to make an investment in India after two hesitations. Foxconn said that through the acquisition of Wistron, it will increase the production capacity in India to 70,000 units, but it is said to have only 50,000 units at most; Foxconn originally planned to join a chip factory in India with an investment of 10 billion yuan, but after the acquisition of Wistron, this plan was shelved.
Now there are rumors that Tata will be the number one OEM of the iPhone in India, which means that if Foxconn goes to India in order to replicate Foxconn's glory in Chinese mainland, it will be regarded as a second Wistron, which is a huge mistake.
The announcement of the Union Bank of India is often a huge danger, because the Union Bank has a huge power in India, many Indian parliamentarians are inextricably linked with the group, when Vodafone bought a communications company in India Li Ka-shing, trying to expand the Indian market, until India ** Vodafone imposed a high fine, for which the Indian Parliament also made corresponding amendments, which can be seen that the group's power in India.
Vodafone's failure to succeed in India, where the telecommunications market is now dominated by Indian conglomerates, has highlighted the strength of Indian companies in specific industries, and the large investments made by foreign companies in them often dwindle rapidly, leaving India from the graveyard of foreign capital"Fame".
Foxconn's development in India has been stumbling over the years, due to various reasons, Foxconn's production base in India has been in a state of stagnation, until four years ago, Foxconn established an iPhone foundry in India, with a total of only 35,000 employees, but Foxconn Zhengzhou only took two years to build a factory, recruiting 300,000 employees, and India is facing many problems.
India is also plagued by the incomplete industrial chain, so it has attracted many upstream and downstream enterprises to build factories in India, and even Apple is trying its best to promote upstream and downstream enterprises to build factories in India, however, Foxconn's founder Guo Taiqiang has established a power battery factory in India, but, after experiencing a fire, Guo Taiqiang realized that this fire is probably not just a trivial matter, but the whole chain has a problem, Foxconn is the real behind-the-scenes. In India, the production of iPhones is inefficient and costly, and the yield rate of iPhones is only 50%.
Many production problems in India have made Foxconn and Wistron go to India to build factories, and now, the Indian group claims that India is the largest foundry of the iPhone, which makes Foxconn very disappointed, maybe Foxconn only now knows that India's "foreign paradise" is not called in vain, and the construction of a factory in India is likely to be a huge trap.