FoxconnAs the world's largest componentOEMManufacturers, with the advantages of the mainland market and the support of cheap labor, becameManufacturing in Chinaof giants. However,Terry GouBut I think it's all thanks toApplesHe even publicly stated that "he was appreciating the meal". This statement is very dissatisfying. However, the mainland did not get rightFoxconnFurther steps are taken, just a requestFoxconnrectification, and tax and land use reviews were conducted. This kind of punishment actually did not play a great warning role, only a symbolic fine of 20,000 yuan. Continental pairsFoxconnThe reason for this attitude isFoxconnHundreds of thousands of jobs are available in China, at one point more than a million. FoxconnThe development has not only driven the development of the industrial chain, but also solved the employment problems of many Chinese. Therefore, if it can be retainedFoxconn, undoubtedly the best choice. With a large number of themApple orderInflux into the Chinese market, it can drive the development of the entire ** chain. However,Terry GouIs this a sign of turning to the Indian market mean that hundreds of thousands of jobs will disappear?
Expansion: As the world's largest componentOEMMaker,FoxconnThe success of the Chinese market is inseparable from the support of the Chinese market. However,FoxconnThere are still many challenges, such as the constant labor costs andApplesThe price increase request was not met. Therefore,FoxconnStarted looking for other markets to reduce costs, and India became a great choice. India has an abundance of cheap labor and offers tax breaks and land resources that attractTerry Gouattention. FoxconnNot only in the Indian market layout of low-end manufacturing, but also plans to enter the high-endSemiconductor industry。With India's focus on consumer electronicsProduct demandof the increase,FoxconnAn assembly line is planned to be set up in Bangalore to meet local pairsiphoneand other products, and increase production. In addition, in the field of semiconductors,FoxconnIt also cooperates with the Indian HCL Group to build a packaging and testing plant. India** offers a production incentive scheme, andFoxconnIt has become one of the first batch of applicants. It is expected that with the deepening of cooperation,FoxconnIt is possible to completely withdraw from the Chinese market. Although there may be capacity vacancies in the short term, butManufacturing in Chinastrength as well as domesticMobile phonesThe rise of manufacturers will soon fill this gap.
Foxconnin partsOEMIt has an absolute dominant position in the field, and with rich experience and advanced technology, it has becomeApple ordermainQuotient。However, with the improvement of China's market strength, many alternative enterprises have emerged, among themLuxshare Precisionis a representative. As a labor-intensive enterprise,FoxconnThe biggest cost is, of course, labor. However, in recent years, the labor costs of factories in Chinese mainland have continued to increase and cannot be metApplesThe request for a price increase, which makes itFoxconnWe have to turn our attention to India, a market with cheap labor. ApplesThe company also intends to move its factory in Chinese mainland to India. In collaboration with Modi's team,ApplesAn agreement was reached with India, and the two sides cooperated to build a chain. Due toApplesThere is no room to increase production capacity in ChinaFoxconnbecame the pioneer of this plan. Currently,FoxconnStabilized its position in the Indian market with tax breaks and land incentives. Terry GouIt has been decided to take action to fully deploy low-end manufacturing and plan to participate in high-end in IndiaSemiconductor industrydevelopment. FoxconnIt is planned to build an assembly line in Bangalore and gradually assemble itiphoneand other products, but also will undertake moreMobile phonesOrders from brands to increase production capacity in India. It has been rumored beforeFoxconnNews of plans to invest 10 billion US dollars in India. In addition, in terms of semiconductor cooperation,FoxconnCooperate with the Indian enterprise HCL Group to build an assembly and testing plant, which:FoxconnIt holds 40% of the shares, with a total investment of 37.2 million US dollars. India** has launched a nearly $10 billion production incentive programFoxconnBe one of the first companies to apply. It is expected that there will be more in-depth cooperation between the two parties under the local manufacturing program promoted by Modi's team. If all goes well,FoxconnIt is entirely possible to leave the Chinese market completely.
Extensions:FoxconnThe move to the Indian market is taking into account rising labor costs and increased competition in the Chinese market. In recent years, the labor cost of Chinese factories has been increasing, and the scarcity of labor is also correctFoxconnproduction has caused a certain amount of pressure. In contrast, India, with its abundant resources of cheap labor and the support of the best people, becameFoxconnnew options. In addition, India** offers tax breaks and land incentives that attract:Foxconninvestment. FoxconnThe layout in India is not only limited to low-end manufacturing, but also involves high-endSemiconductor industry。By establishing an assembly line and carrying out packaging and testing factory cooperation in IndiaFoxconnThe company hopes to expand its presence in the Indian market and meet the local demand for consumer electronics. Currently,FoxconnPlans have already begun to be implemented in India, while hundreds of thousands of jobs in the Chinese market are at risk of disappearing.
FoxconnYesManufacturing in ChinaLeaving the Chinese market will have a range of consequences. First of all, there will be a shortage of capacity in the short term. FoxconnAfter leaving,Manufacturing in ChinaIt may take some time to fill this gap and return to normal production levels. However, considerManufacturing in Chinacompetitiveness and strength in the global market, plus ChinaMobile phonesWith the rise of manufacturers, I believe that these hundreds of thousands of jobs will not disappear for a long time. Secondly,FoxconnThe departure will also have an impact on China's ** chain. FoxconnAs the world's largest manufacturer of components, with manyQuotientWe have a close working relationship. After leaving the Chinese market,FoxconnofQuotientProduction schedules may need to be adjusted and other partners may be found to fill the gap. This will bring with it a certain amount of uncertainty and a period of adjustment. However, China, as the world's largest manufacturing base, has a strong industrial chain and a complete set of productsQuotientresources, believing to be able to adapt and meet this challenge. Finally,FoxconnLeaving the Chinese market will also cause a certain amount of attention and reflection. China** and its relevant authorities are likely to step up their support for the manufacturing sector and adopt more policy measures to retain businesses and jobs. At the same time, China's manufacturing industry also needs to continuously improve its competitiveness, strengthen technological innovation and product upgrades, in order to maintain its leading position in the global market.
Extensions:Luxshare PrecisionIt has becomeApple ordermainQuotientOne of them, and has been recognized in strength. Luxshare PrecisionTook a lot of themApple order, continue to develop rapidly. Therefore, it can be saidLuxshare PrecisionIt has becomeFoxconnA big competitor. ForFoxconnof departure,Luxshare PrecisionIt is expected to fill the gap and further expand themselves in componentsOEMshare of the field. FoxconnLeave the Chinese market forLuxshare PrecisionIt is indeed an opportunity, but at the same time, it also needs to face more fierce competition and challenges. Luxshare PrecisionIt is necessary to continuously improve its own technology and management level, as well as strengthen andApplesand other customers to continue to maintain a competitive advantage.
All in all, Terry Gou's turning to the Indian market means:Foxconnof jobs may be reduced. However,Manufacturing in Chinastrength and competitiveness, as well as domesticMobile phonesThe rise of manufacturers will help fill this gap. The consequences and outlook of Foxconn's departure from the Chinese market remain uncertain, butManufacturing in ChinaIt is expected that the challenges will be met by increasing support and enhancing competitiveness. At the same time, otherOEMBusinesses such as:Luxshare PrecisionThere is also an opportunity to fillFoxconnand continue to grow.