As one of the world's largest electronic manufacturing service providers, Foxconn has been building factories in mainland China and gradually expanding its business scale since coming to Chinese mainland in 1988. Becoming one of the largest private enterprises in Chinese mainland, Foxconn has brought huge investment and employment opportunities to the mainland market, and has also made positive contributions to the economic development of Chinese mainland. Without the support of the mainland market, Foxconn would not have been able to achieve its current success.
However, in recent years, Foxconn has begun to gradually shift its investment focus to the Indian market. This has caused concerns, and there are even rumors that Foxconn may leave the mainland altogether to build factories, so that the share of the mainland market will be filled by India. This is also the reason why many people are confused and puzzled by Foxconn's choice.
In this context, Foxconn revealed an important news, that is, the establishment of a new energy vehicle company in Zhengzhou and an investment of 500 million yuan. The company will be mainly engaged in the manufacture of automotive parts and accessories, as well as the manufacture of electric motors. This move shows that Foxconn has not completely abandoned the mainland market, but is continuing to increase its layout in the mainland market.
In addition to investing in a new energy vehicle company in Zhengzhou, Foxconn is also planning a factory expansion in Hengyang High-tech Zone to produce components for iPhones. This move further strengthens Foxconn's layout and investment in the mainland.
At the same time, however, Foxconn has also increased its investment in the Indian market. According to reports, Foxconn cooperated with the Indian company HCL to jointly build a semiconductor packaging and testing factory and invested $47.2 million. This shows that Foxconn has not given up on the plan to build a factory in India, but is going hand in hand in both the mainland and the Indian market to seek a win-win situation.
Foreign media spoke highly of the decision-making of Foxconn founder Terry Gou, calling it truly "cunning". Guo Taiming once said that building a factory in the mainland is to give mainlanders food to eat, and if they face a threat, they can leave at any time. This statement gives the impression that Foxconn may leave the mainland market.
However, Foxconn's move shows a clear "cunning". Foxconn did not give up the Chinese mainland market as Gou said, but continued to invest in the mainland and increase its layout. At the same time, Foxconn has also continued to invest in the Indian market and built a joint venture factory. This strategy of striving for development in two markets at the same time demonstrates Foxconn's determination to maintain and expand its market share.
However, Foxconn needs to be aware that while developing separately in two markets at the same time can bring broader room for development and profits, it also needs to comply with the laws, regulations and tax requirements of each country. Recently, Foxconn was investigated and punished by the mainland tax department for tax problems and fined 20,000 yuan. This raises questions about Foxconn's compliance operations.
Foxconn's success is inseparable from the support and help of the mainland market, and it should understand the principle of win-win. Now Foxconn wants to make huge profits in the mainland market and occupy more market share in the Indian market, but this needs to comply with the market rules and laws and regulations of various countries. Excessive pursuit of profit and violation of regulations is detrimental to the reputation and development of the enterprise.
As a world-renowned electronic manufacturing service provider, Foxconn has been committed to expanding its business scale around the world. Although Foxconn has increased its investment in the Indian market in recent years, its emphasis on and layout in the Chinese mainland market has not weakened. By investing in factories in various markets, Foxconn has demonstrated its "cunning" of "having both fish and bear's paws".
However, Foxconn should also be wary of the risks posed by non-compliant operations. Compliance is the cornerstone of sustainable business development, and Foxconn needs to realize that developing in two markets at the same time requires compliance with market rules, laws and regulations of various countries. Foxconn should cherish the opportunities in the mainland market, maintain a good cooperative relationship, and at the same time seek a broader development space in the Indian market. Only in this way can Foxconn truly achieve a win-win situation and achieve sustainable and stable development.