The U.S. invests in Vietnam's chip industry and takes a discarded attitude toward India
In the past, India has repeatedly taken action against Chinese mobile phone companies to meet US demands. But now, American companies have chosen a different path, preferring to invest in Vietnam rather than India, Modi's"Made in India"Plans will again be dealt a serious blow.
India's manufacturing sector is just getting started: in 2014, India announced"Made in India"plan, after which the plan has been delayed in coming true, and companies such as Foxconn have announced investments in India. The opening of a factory in India has injected new impetus into the Indian manufacturing industry.
In 2019, Foxconn and Apple jointly established a large-scale factory in India, and then, Wistron was more determined, directly sold the Chinese factory to Langke Precision, and invested in India, but unfortunately Wistron was also detached, and the saddest thing is that only two years later, the Indian consortium forcibly took over Wistron's factory, and in 2023, Apple will only allocate 1% of iPhone 15 orders to Wistron, and Wistron can indeed be said to have withdrawn from the Indian market.
In the past few years, India has carried out a more sustained crackdown on Chinese mobile phone companies that have made significant contributions to Indian manufacturing, resulting in the unfavorable development of Chinese mobile phones in the Indian market In 2023, Samsung mobile phones overtook Chinese mobile phones to regain the top spot in the Indian mobile phone market, and the company's success is due to the following factors.
Perhaps at this point, India already has a certain manufacturing base, may not need the support of Chinese mobile phones, and India has also begun to develop high-tech industries, such as the chip industry, global chips to set up factories in India to open 10 billion yuan to attract enterprises, of course, India hopes that American chip companies will set up factories in India.
At present, 15 U.S. chip companies have invested in Vietnam, with a total investment of 8 billion yuan. This shows that the US chip industry favors Vietnam more than India, which is the result of India's self-destruction of its future in defiance of market realities.
First of all, India lacks basic industries, and even the lowest assembly industry India is not doing well, Foxconn has set up a factory in India, and the yield rate of the iPhone 15 produced is only 50%, which makes European and Chinese consumers reluctant to buy. Apple was forced to announce the launch of the Chinese-made iPhone 15 to the European and Chinese markets after discovering it.
Second, the recurrence of events in India is very worrying for American companies. Many years ago, India promised to give Wal-Mart, Amazon and other companies a lot of benefits, but with Amazon and Wal-Mart investing heavily in India, these companies and Indian consortiums have hidden dangers, and India has also issued huge fines to Amazon and Wal-Mart, which makes US chip companies worried about India's credibility.
India's actions to Chinese mobile phone companies have once again beautified India's foreign cemeteries. As a result of this practice in India, more than 1,700 foreign-owned enterprises will be deregistered in India in 2022-early 2023, accounting for one-third of the total number of foreign-owned enterprises in India.
Finally, India itself lacks human resources. In fact, India is training a lot of talent, but most of this talent goes to the United States. The chip industry needs a large number of high-end talents, and these talents are all in the United States. U.S. chip companies are even more reluctant to invest in India, where high-end talent is generally reluctant to return.
It can be said that India's attitude towards Chinese mobile phones has not only not been favored by American companies, but has increased the anxiety of American companies investing in India. Now, at the heart of America's massive investment in Vietnam is undoubtedly what Modi calls a die-hard fan. High-tech manufacturing is still out of reach for India, and assembly is the one that can attract India. I wonder if India is going to reconsider its attitude towards Chinese mobile phones?