Terry Gou transfers business to India, hundreds of thousands of jobs will disappear?
Ironically, he will be transferred to India! Terry Gou has officially announced his transfer, but will hundreds of thousands of jobs disappear?
With its advantages in the mainland market and cheap labor, Foxconn has become the world's largest parts OEM, and Gou is in a good mood, attributing all the credit to Apple's orders, and even saying it publicly"It is fed as a reward"。
However, on the basis of the principle of reciprocity, China took no further action: after an investigation into Foxconn's taxes and land use, only rectification recommendations were made, and a fine of 20,000 yuan was only a warning.
This is because Foxconn still provides hundreds of thousands of jobs (more than a million at its peak), solves many of the country's employment problems, and manages the ** chain.
For such a company, it would be better if it could be maintained, so that Apple could order a large influx into the mainland market and drive the development of the entire ** chain, but now that Terry Gou is obsessed with the Indian market, does this mean that hundreds of thousands of jobs will disappear? Does this mean the disappearance of hundreds of thousands of jobs?
Rise. Foxconn has an absolute advantage in OEM parts manufacturing, has rich experience and a wide range of technologies, and is a regular customer of Apple's orders.
As a labor-intensive enterprise, the biggest cost of iron is labor, but in recent years, the labor cost of mainland factories and the price of goods have continued to rise, requiring Apple not to agree, and can only use cheap labor to enter the Indian market.
And Apple has long had such an attention, under the matchmaking of Modi's team, in the establishment of the ** chain, both sides are intrigued, and Apple's production capacity has no room for improvement, can only be transferred to Chinese mainland factories, and Foxconn is in this regard"Pacesetter"。
At the moment, Foxconn is considered to have some stability in the Indian market, not only offering tax incentives, but also owning a lot of land, and now Gou has decided to take action not only to take a place in the low-tech industry, but also to enter the local high-tech semiconductor industry It wants to.
Foxconn plans to build an assembly line in Bangalore to meet India's demand for consumer electronics, after which it will begin fully assembling iPhone products and receive orders from other mobile phone brands to boost production in India across the board.
Similarly, in terms of semiconductor cooperation, Foxconn has been denied that there is a new progress, and the cooperation with India's Vedanta company now has an officially announced plan to cooperate with the Indian company HCL Group to build packaging and testing equipment, Foxconn has a 40% stake. Holdings, with a total capital contribution of 37.2 million yuan.
India has launched a manufacturing incentive program worth about $10 billion, and Foxconn is the first batch of companies to apply. Foxconn is likely to pull out of the Chinese market entirely.
Of course, there will be job openings in the short term after Foxconn's exit, but given the current strength of China's manufacturing industry and the growth of Chinese mobile phone manufacturers, hundreds of thousands of jobs will soon be filled.