Terry Gou's counterattack begins! Foxconn makes important decisions, where do hundreds of thousands of workers go?
Since the early nineties, a number of foreign-funded enterprises have set up factories in China. At that time, the local ** launched various preferential policies to stimulate the economy and increase employment, and foreign businessmen also saw the huge consumption potential and a large number of high-quality people in Chinese mainland, and decided to develop in this vast mainland, of which Taiwan's Foxconn is one of the examples.
But in recent years, Foxconn has secretly imitated Apple's approach and wants to move production capacity to Southeast Asia. How can you just go? Of course, it's not that hard to leave. Foxconn has been committed to the development of Chinese mainland for many years, has it violated relevant laws and regulations? These are all things that must be addressed! As a result, since October 2023, the authorities have launched a full-scale investigation into Foxconn. It is worth mentioning that the investigation of the relevant departments is aimed at Foxconn, which is also a national problem, of course, for Foxconn's illegal acts, we have been prepared for a long time, and we should have mastered it, but we are just creating evidence.
Surprisingly, the case was finally hastily closed with a fine of 20,000 yuan, which was just a drop in the bucket for Foxconn. What is "righteous indignation" and "magnanimity"? That's where the official genius comes in. The author believes that this move is a serious warning to Foxconn, and the implication is: "Look, I got your handle, this matter is very simple, it is just a fine of billions, it's not a big deal, I advise you."
If Guo Taiming admits this, continues to stay on the mainland to develop, create more jobs, and increase GDP, such days will soon pass.
If Terry Gou continues to follow Apple to India and is terrified of a series of sanctions, then Foxconn will face a catastrophe!
However, this seems to make Terry Gou very unhappy! In November, Foxconn invested another 10 billion yuan in India, and in December, India** announced that another investment from Foxconn also reached 12 billion yuan. In other words, Foxconn is accelerating its withdrawal from the mainland.
This is also reflected in the number of employees. At its peak, Foxconn had 1.2 million employees on the mainland, but what about today? The remaining seven hundred and sixty-seven thousand. At present, Foxconn's employees in Chinese mainland implement an eight-hour work system + five insurances and one housing fund, which means that these people only have a basic salary, and even survival is a problem.
The question is, will Foxconn fly to India and send Apple there? The answer is no! You must know that before Cook became Apple's CEO, he was in charge of Apple's ** chain, known as the "** chain management master", and Cook was crazy about poaching people from Apple chain stores. Cook has always believed that all parts should be purchased from multiple suppliers, and the advantage of this is to encourage competition between suppliers, thereby reducing the quality of the chain and increasing profits, including Foxconn.
When Foxconn decided to follow Apple's lead, other ** companies could also get iPhone orders through OEM. Therefore, Luxshare and Pegatron will jointly undertake Foxconn's order!
After taking over the Chinese foundry contract from Foxconn Huawei, BYD also began OEM of industrial electronic products. The 15.8 billion yuan acquisition of Jabil electronics manufacturer Jabil is considered an important sign of entering the industrial fruit industry chain, because the latter is also Apple's top merchant. Once BYD successfully enters Apple's ** chain, then Foxconn will face a greater dilemma!
I don't think the authorities will sit idly by. Foxconn will face a barrage of sanctions, and Gou will pay a heavy price for it.