India awarded Foxconn the Lotus Medal, behind this honor
According to public reports, in November and December 2023, Foxconn invested another 11 billion yuan and 12 billion yuan to build factories in India, which means that Foxconn's total investment in building factories in India has reached a scale of 30 billion yuan.
In addition, at the end of January, it was reported that Foxconn would invest 37.5 million yuan to build a chip packaging and testing plant in a joint venture with India's HLC company. It can be said that Foxconn has invested a lot of money in building a factory in India, hoping to make India the next production base of Foxconn.
What people didn't expect was that India's response to Foxconn"Strong investment"Given"Response"。According to India**, India will award the award to Foxconn CEO Liu Yangwei"Lotus set"medal, this news quickly attracted the attention of the industry. After all,"Lotus set"The medal is one of the highest civil honours in India, and Liu Yangwei is the first non-Indian to receive the medal.
In fact, many industry experts believe that Liu Yangwei was able to win this medal because of Foxconn's huge investment in building a factory in India.
In 2014, India introduced the 2022"Made in India"plan, and removed tens of billions of dollars in subsidies for the construction of semiconductor factories in India. It can be said that Foxconn is involved in both fields, not only building an electronic foundry in India, but also preparing to build a semiconductor chip factory in India.
India has a large population and low labor costs, so the market is huge, attracting many foreign-funded enterprises. However, India's business environment is extremely poor, and many foreign-funded enterprises that have invested and built factories in India have not escaped India"Scythe"。
According to published statistics, about 3000 reputable foreign companies have withdrawn from India in the last three years. It can be said that India's business reputation has made many foreign companies happy"Prohibitive"。
This has also led to the fact that although India has withdrawn tens of billions of yuan in subsidies, and the threshold is only 28 nanometer process, and the subsidy ratio can reach up to 50%, few semiconductor companies are willing to invest in building factories in India. According to current news reports, only Micron has received subsidies from India, and Micron is not building a chip foundry in India, but a chip packaging and testing factory.
Previously, many U.S. semiconductor companies had planned to enter the Indian market, but due to India's technical talents, industrial chain construction and poor business environment, U.S. semiconductor companies have now given up investing in India.
In this case, it can be said that Foxconn's construction of a chip factory in India is very"Persistence"Target. Previously, Foxconn and Indian companies wanted to build a joint venture chip foundry, but it was not approved when applying for subsidies, and in desperation, Foxconn decided to abandon the construction plan. Now, Foxconn has once again gone to India to invest in the construction of factories, which is enough to see Foxconn"Sincerity"。
Previously, some industry insiders analyzed that India's subsidies for chips may be similar to those in the United States, they are"Bait", foreign companies to build factories in India and then revise the subsidy rules, coupled with India's bad business reputation, so not many semiconductor companies are willing to build chip factories in India.
Well, this time India awarded Foxconn CEO Liu Yangwei"Lotus skirt"As for the medal, I think about it"Clarification"One time, ie"Thousands of dollars buy horse bones"。However, it is worth noting that after the failure of the previous plan to build a tablet factory in India, Foxconn has no intention of continuing to build a tablet factory in India.
If you look at it this way, India's behavior this time is likely to drag Foxconn back. After all, Foxconn's suspension of the construction of chip factories in India is not a big problem, but if it affects Foxconn's plan to build factories in the field of electronic foundry in India, the impact on the development of India's manufacturing industry is still relatively large.
But in any case, due to India's poor business reputation and the general lack of confidence in the Indian market, many foreign companies setting up factories in India will only be more cautious. Without foreign capital to build factories, the development of India's manufacturing industry and India's semiconductor industry will not be so easy.
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