A pot to go? Guo Taiming made a decision that Foxconn would no longer give "preferential treatment" to the mainland
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Summary: All in one? Terry Gou made a decision on Foxconn: Don't "enjoy eating" in the mainland.
Foxconn, a contract giant that has created countless jobs in Chinese mainland, now appears to be repositioning itself. In the face of changes in the international situation, Foxconn's policymakers appear to see India as the next engine of economic growth. This shift in strategy makes one wonder: Is Foxconn really planning to abandon the mainland market, which once depended on it?
From the perspective of Foxconn's development history, Chinese mainland is the key to Foxconn's successful development. Foxconn's founder, Terry Gou, built a factory in Shenzhen because he saw China's huge demographic advantage and huge potential market. With its cheap labor and high production efficiency, Foxconn has rapidly grown into the world's largest foundry.
However, the market competition in Chinese mainland is becoming more and more fierce, and the labor force is getting higher and higher. At the same time, due to India's large population and increasingly complete infrastructure, it has become the focus of the world's manufacturing industry. In this case, does Foxconn want to be the only one? Turning to India, when Terry Gou made the decision to relocate 300 billion production capacity to India, will Foxconn stop "appreciating food"?
However, there is also a certain danger for Foxconn to make such a decision. First, it remains to be seen whether Indian workers can meet Foxconn's needs, given that the quality and productivity of India's labor is much worse than that of mainland workers. Secondly, India is a more complex country, and Foxconn will encounter some difficulties in manufacturing and operating there. In the end, Foxconn's market share and brand awareness in India are not high, so Foxconn has to work more on its brand and marketing.
Foxconn is said to have invested $25.8 billion in India and intends to increase the number of employees in India to 160,000 over the next three years. In addition, Foxconn also intends to produce 20 million units a year in India, and vigorously promotes a policy to encourage semiconductor manufacturing in India.
Foxconn's move was seen by some as smart, while others called it risky. However, it is undeniable that Foxconn's decision will have a profound impact on the world's production environment. If Foxconn can win in India, it will become a new growth engine for the world's manufacturing industry; Conversely, a setback for Foxconn's business in India would also be a wake-up call for manufacturing around the world.
Guo Taiming specifically mentioned Foxconn's relocation decision, saying that over the years, it has been Foxconn that has contributed to the mainland, which has caused a lot of controversy and criticism. Many people see Gou's remarks as a misunderstanding and contempt for the Chinese mainland market. In fact, without the strong support of Chinese mainland, Foxconn would not have been able to succeed. If it weren't for the huge demand and generous policies in Chinese mainland, Foxconn would not have achieved today's results.
Therefore, regardless of whether Foxconn will eventually withdraw from Chinese mainland, he should be very grateful and grateful to China that has provided him with countless opportunities. At the same time, Foxconn should also think about it, in the current international competition, BYD, Lixun Precision and other domestic enterprises have made great progress in the manufacturing industry, although Foxconn is going very slowly, but it is difficult to return to China. What are your thoughts on this matter?