There are always some people on the Internet who still hold unrealistic illusions, thinking that factories such as Foxconn, which are making slow progress in India, will retreat to China because of the difficulties.
However, this is a political struggle and has nothing to do with the economy! The factories evacuated from China, even if they are all lost, they will not think of coming back.
Modi met with Foxconn CEO Liu Yangwei and awarded him the "Order of the Lotus Suit".
Foxconn began to lay out its Indian factory as early as a few years ago, but the number of employees has not exceeded 50,000, and the number of employees in Zhengzhou alone in Chinese mainland alone exceeds 300,000.
However, in 2023, Foxconn has accelerated its evacuation. There are two main reasons for industry analysis:
1.During the epidemic, the Chinese factory, which has always been the most obedient, had a serious strike in Zhengzhou, which made Guo Taiming begin to have a crisis. In the past, China unconditionally supported Foxconn, and so many jumping incidents did not affect the production of Foxconn's factories in China, and this time ** did not strongly intervene in the strike.
2.Guo Taiming intervened in Taiwan's politics and hyped up the election without a bottom line, causing the mainland to launch a tax investigation against him. Although he was raised high and gently lowered in the end, Guo would no longer think that "because of him, he gave the mainland food to eat", the mainland would get used to him.
Guo's actions also show his determination to quickly draw a line with China! This determination, and the pressure that Apple put on him!
Apple has set a plan to release the Apple 15 produced in India in September 2023. In order to achieve this goal, Foxconn exerted all its efforts, although it was ultimately shown that India was more expensive than China except for manual labor to China, but Foxconn sent a large number of engineers from China at the beginning of the year to support the Indian factory.
Chinese technical engineers, hand-in-hand to teach Indians how to use machines with Chinese logos, how to debug, improve product quality.
The Indian factory replicated Foxconn's early years in China, recruiting a large number of young girls. In order to inform the concerns of the parents of these female workers, the Chinese workers changed the two-shift shift in India to three shifts, and sent special buses to transport the workers to and from work, and the investment in Indian workers was much higher than that of Chinese workers. Indian female workers, except for lower wages than Chinese workers, all benefits are far from being comparable to Chinese workers. (Refer to The Paper "Foxconn Makes iPhones in India: Everything Is Expensive Except for Labor").
In this way, Foxconn produced Apple15 in India with a higher cost and lower yield than China, which was praised by Modi and Cook!
Now Foxconn's goal in India is to further improve the yield and productivity of the Indian plant.
In the short term, India cannot compare with China in terms of infrastructure, but both Apple and Foxconn are determined to support India to decouple from China!
In July 2023, Foxconn's subsidiary FII plans to invest 16 billion Indian rupees (about 1.4 billion yuan) to build a new electronic component factory in India, which is expected to create 6,000 new jobs.
In December 2023, Foxconn submitted an application to India to establish a semiconductor factory, announcing an additional $1 billion investment on top of the $1.6 billion set aside for the new factory in Karnataka, bringing the total investment to $3.6 billion (about 25.7 billion yuan).
Many of us think that the withdrawal of Foxconn and other Taiwan-funded and foreign-funded enterprises from China is due to changes in China's business environment, but in fact it is the coercion and inducement of these capitals by the United States, coupled with India, which is eager to rise to power, that makes them hit it off.
The decline in investment has already had an impact on our country in terms of employment.
However, we should also consider it from another aspect: Foxconn wants to build a car factory in Zhengzhou!
This shows that even if Gou doesn't want to, China's huge advantage in electric vehicles has forced them to lower their stature and learn from China the ability to build electric vehicles.
What we have to do is how to develop the high-end manufacturing industry and keep this advantage in China!
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