Guo Taiming counterattacked, and Foxconn s capacity transfer had many impacts!

Mondo Technology Updated on 2024-02-15

Guo Taiming counterattacked, and Foxconn's capacity transfer had many impacts!

One of Foxconn's factories in India has been confirmed, with Foxconn investing 11 billion yuan in November last year, compared with 12 billion yuan on December 23, while Foxconn's factories in India will total about 30 billion yuan.

Despite India's economic downturn, Foxconn is still insisting on building a factory in India, which has also attracted a lot of attention and controversy. After all, just like Apple's largest contract factory, Wistron, withdrew from India, Foxconn"Runaway"The only way to do this is to set up a factory in India.

However, in addition to these, many people are also worried about whether Foxconn's rapid withdrawal will have an adverse impact on us.

Foxconn (Foxconn) and Apple (Apple Inc.).The company intends to move its production capacity to India, and India is very tolerant of this and proposes various preferential policies in order to set up factories in India as soon as possible.

India's move was interpreted by many foreign media as India sending a message to the outside world. India has long wanted to become a manufacturing powerhouse and surpass us as a global manufacturing hub. India's poor business conditions have caused many foreign-funded enterprises that have just entered the Indian market to choose to withdraw.

If Apple can bring Foxconn and other leading companies to India, it will be a great opportunity for local manufacturing.

Foxconn continued to increase its investment in India from November to December 2023. Subsequently, Foxconn also plans to build a chip packaging and testing plant with HCLgroup in India. The cooperation between the two sides seems to be going well, and the future is bright.

Many fear that Foxconn's withdrawal will have a knock-out on some workers and could lead to the gradual withdrawal of other tire manufacturers. Some time ago, it was reported that many electronics manufacturers such as Pegatron and Compal have announced the suspension of production. In addition, there are many concerns that India's growing relationship with Foxconn will lead to a huge challenge for India to rise in the international market.

However, in fact, although Foxconn's move has caused a certain negative effect on us. However, the impact of all this is not too great.

First of all, Foxconn's headquarters has not yet moved from Zhengzhou. Henan **19 reported that Foxconn will create a new output value record in Zhengzhou this year. Some time ago, on January 4, Foxconn established a new electric vehicle manufacturer, located in Zhengzhou, Henan Province.

So Foxconn has high expectations for India's huge market prospects, but is reluctant to easily cede the mainland market, which has a population of 1.4 billion. Even if Foxconn moves out of Zhengzhou, it is not without other ways. BYD has a 16,000-hectare factory in Zhengzhou with an annual production capacity of 1 million vehicles.

This means that more industrial parks will be built in Chinese mainland due to the modernization of industries. BYD is by far the world's largest exporter of new energy vehicles. The number of industrial parks in Chinese mainland is also expected to grow.

But will the Foxconn-India partnership stay sweet forever? United Kingdom" bbc"India's business environment has been criticized for struggling to grow in the case of India.

India has become a graveyard for foreign-owned enterprises, with 2,783 businesses in India failing in just 7 years from 2014 to 2021, and 1 6 of India's foreign-funded enterprises.

The quality of labor in India has also been criticized, and most of the employees employed in Foxconn's factories in India can be hired with some basic training. However, most of the employees at Foxconn India have been trained for more than three months, and their success rate is less than 50%.

Also, transportation in India is expensive because of its poor infrastructure.

Terry Gou did teach us a lesson in this tide known as "industrial transformation", but this lesson is different for all of us. In the process of China's sustained economic growth, the transfer of low-end industrial chain to the outside has become an inevitable trend, but only by realizing the modernization of industry can it be possible to realize the outward transfer of industry.

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