The withdrawal of a new generation of industrial giants is announced! Pegatron entered India to build a factory
The excellence of China's manufacturing industry is known to all, and India wants to develop its own manufacturing capacity and make it the next manufacturing base in the world after China.
India has made a number of concessions in order to attract foreign producers to set up factories in India. Foxconn has invested more than 30 billion yuan in factories in India.
But surprisingly, some time ago, it was reported that another wafer foundry giant, Pegatron, had also decided to withdraw from Chinese mainland and invest in a factory in India. Foreign ** reported on this, and even bluntly said that Chinese companies have been"Overboard"。
In fact, there is news that Foxconn is investing in a factory in India to accelerate its exit from Chinese mainland: in November and December, Foxconn invested 10 billion yuan and 12 billion yuan, respectively, to prepare for the acceleration of the construction of the Indian factory, while increasing the number of employees in India to 700,000.
What's more, in early January, Foxconn announced that it would invest 37.5 million yuan in HLG in India to build a chip test plant. Industry insiders believe that Foxconn's move is to accelerate the pace of its exit from the market.
Foxconn's decision to set up a factory in India was justified by a variety of reasons. For example, India has more labor and is cheaper, which is a good thing for labor-intensive companies like Foxconn. Most of Foxconn's orders come from Apple, which has not only begun to move its co-packing capacity to India, ordering nearly half of India's iPhones, but is also building a factory in India with Fujiang, Foxconn and other foundries (Foxconn).
India** is also developing a series of preferential policies to attract foreign manufacturers to set up factories in India. In India, for example, it has reduced the tax rate on mobile components such as SIM card slots from 15% to 10%, which is a big tax for many foreign-funded companies.
Pegatron chose to invest in India to build a factory, but there is nothing surprising, because now many foundries have come to India, and even Luxshare Technology and BYD are interested in India, and not building a factory in India is equivalent to giving up the cake of India.
Whether it is Foxconn or Pegatron Technology, opening a factory in India may not be successful. For Pegatron, opening up the Indian market seems to be good, but in practice, there will be many difficulties.
Not only is the quality of labor in India low, but there is also a shortage of skilled workers, and the business environment in India is actually worse. In stark contrast, like Wistron, Apple's foundry, the company invested in a factory in India for several years and started production, but ended up in India"Running buckets"。
Now, not only has Foxconn accelerated the construction of a factory in India, but the local Indian company Tata has also become a foundry for Apple's iPhone. It is unclear how many orders Pegatron will be able to get from India, so although the decision has been made to invest in India, some of the foundries remain in China.
In addition to mobile** manufacturers, other mobile** manufacturers have also chosen to set up factories in India. Take Xiaomi, for example, which has already established factories in India and has been operating in India for many years. According to public figures, Xiaomi has been selling the best and selling best in the Indian market for several years.
In fact, there is no need to worry too much about moving production capacity to factories in India, as it is inevitable that labor-intensive industries will go overseas as manufacturing technology advances. It is very common for Chinese companies to intend to set up factories in India, because the market in India is not large, and it is undoubtedly a big step for Chinese companies to set up factories in India.
However, as mentioned earlier, there are many problems with the Indian market, which looks good on the surface, and Chinese companies should be mentally prepared when investing in India.
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