FoxconnThe decision to move the mainland factory was not a spur of the moment. In fact, five or six years ago,FoxconnBegan the mainland factory transfer program, and plans to transfer mobile phonesOEMThe business moved to India, Vietnam, etc. At that time,Foxconnand industry experts claim that mobile phonesOEMProfits are low, while labor costs on the mainland are rising, in order to protect the interests of enterprisesFoxconnIt was decided to move the mainland factory. Although from the perspective of national development, the rise in labor costs on the mainland has indeed facilitatedFoxconnThe factory has been transferred, but we must also see that in recent years, the mainland labor force has not arrivedFoxconnThe tipping point of moving away. In fact, the past few years, thoughFoxconnFactories have been established in India, Vietnam, and other regions, but the scale is not large. Even at the maximumInvestmentsof India, the total number of employees is also only about 50,000, compared to a singleZhengzhou FoxconnThe number of workers in the factory is as high as 300,000. So, from this point of view, the pastFoxconnThere was not much attention paid to the transfer of factories.
However, the situation has changed in the last year. Last year,FoxconnA series of major announcements were made one after another, first in IndiaInvestmentsMore than 10 billion for the expansion of the factory. At the same time, the revelations of internal employees show that in Shenzhen, ChinaFoxconnfactories, many production lines were dismantled and moved to India, Vietnam, etc. From the perspective of labor factors, the domestic labor force did not ** last year, but declined, so whyFoxconnWhat about speeding up the evacuation plan?
FoxconnAccelerated evacuation isn't just about cost. Industry insiders believe thatFoxconnThe problems behind the withdrawal are twofold. First of all, over the past three years, has occurred in:FoxconnA series of events at the plant aroseTerry GouA sense of crisis. Secondly, the environment has changed, especially the gradual tension with the other side, which has made itTerry GouEvacuation operations were accelerated.
However, in the process of evacuation,FoxconnThe choice of the evacuation site in India is not a simple cost consideration. SemiconductorsThe packaging and testing business is high-endOEMbusiness, with mobile phonesOEMNot comparable. However, there is a large gap in the quality of India's workforce compared to the mainlandFoxconnWhat about not cooperating with mainland enterprises to carry out chip packaging and testing business in mainland China? Clearly, this is explained by more than simply cost factors.
FoxconnThe reasons behind the accelerated evacuation do give us some enlightenment. In the past few years, the domestic environment has undergone drastic changes due to various reasons, and stability is the most important thing for foreign investment. If the environment continues to change, even if foreign capital hasInvestmentswillingness, and will be treated with caution. The root cause of the recession lies in the problem of confidence and the environment. Therefore,FoxconnThe underlying reasons behind the accelerated evacuation teach us a lesson: if we fail to stick to the direction of the past, the glory of the past will become a thing of the past, and the gains that have been made may be lost.
Chinese people are hardworking and intelligent, and we can flourish as long as we are given a good environment. Therefore, abandoning tossing and stabilizing development is the most critical issue. What do you think?