Gou made a major decision that Foxconn would no longer provide financial support to the mainland
Click to follow and we will share high-quality tech content every day!
Introduction: Pots and pans are all out? Terry Gou made a decision, Foxconn: no longer give it to the mainland"Appreciation"
Foxconn, the foundry giant that once created countless employment myths in the Chinese mainland market, now seems to be adjusting its course. As the global market changes, Foxconn's decision-makers seem to believe that the Indian market will be its next growth engine. This strategic shift not only raises the question: Is Foxconn really ready to abandon its once-thriving Chinese mainland market?
Throughout Foxconn's development history, it is not difficult to find that the Chinese mainland market has played a vital role in its rise. At first, Foxconn founder Terry Gou realized the demographic dividend and huge market potential of Chinese mainland and decided to build a factory in Shenzhen. With low labor costs and efficient production capacity, Foxconn quickly became one of the largest foundries in the world.
However, as time goes by, the Chinese mainland market has become increasingly competitive and labor costs have risen. At the same time, the Indian market is beginning to attract the attention of the global manufacturing industry with its huge population base and gradually improving infrastructure. In this context, does Foxconn want to walk away? Transferred to India, Terry Gou has made the decision to transfer 300 billion production capacity to India, does this mean that Foxconn is no longer there"Plenty of food and clothing"of the continent?
However, Foxconn's decision is not without risk. First of all, the quality and productivity of India's workforce is much lower than that of the African continent, and it is still unclear whether Indian workers can meet Foxconn's requirements. Second, India's environment is relatively complex, which may bring some problems to Foxconn's production and operation. Finally, Foxconn's brand influence and market share in the Indian market are relatively low, which forces Foxconn to invest a lot of time and resources in brand building and marketing.
Foxconn has reportedly invested more than $25.8 billion in India and plans to increase the number of employees in India to 160,000 over the next three years. In addition, Foxconn also plans to produce 20 million mobile phones a year in India, and actively participates in India's plan to encourage the production of semiconductors, which can be said to be Foxconn's attempt to eliminate upstream and downstream links in one fell swoop.
Some people think Foxconn's decision is a wise move, while others think it is a risky move. But in any case, we cannot deny that Foxconn's decision will have a profound impact on the global manufacturing landscape. If Foxconn succeeds in the Indian market, it will become a new growth engine for the global manufacturing industry; Conversely, if Foxconn suffers a setback in the Indian market, it will be a warning sign for global manufacturing.
Regarding Foxconn's decision to relocate, Terry Gou said"It is Foxconn that has been using grain to repay the mainland all these years"。As soon as this remark came out, it caused a lot of controversy and criticism. Many people believe that Gou's statement is a misunderstanding and disparagement of the Chinese mainland market. In fact, Foxconn's development is inseparable from the support and cultivation of the Chinese mainland market. Without the huge demand and preferential policies in the Chinese mainland market, Foxconn may not have achieved what it is today.
Therefore, whether Foxconn chooses to leave the Chinese mainland market or not, it must be grateful and grateful for the market that once provided it with unlimited opportunities. At the same time, Foxconn must also seriously think about how to remain competitive and innovative in the new market environment to cope with the increasingly fierce global competition. At present, BYD, Lucent Precision and other Chinese local enterprises have also entered the realm of rapid OEM development, which can be replaced, Foxconn wants to go out easily, and it is not so easy to come in again. I wonder what you think about this?