At the beginning, Foxconn went to India with 4.8 billion to build a factory, which caused great controversy. Now another equally famous Apple foundry has been evacuated on a large scale, and 100,000 jobs have evaporated!
According to the news, the withdrawn company, called Pegatron, is the largest American foundry in China, and its main business is Apple electronics assembly orders. Since its establishment in 2004, Pegatron has made a lot of money with Chinese dividends and tax incentives, and a single factory can account for 10% of Shanghai's GDP.
Recently, Apple and Huawei are fighting hotly, but the Shanghai Pegatron factory, which is Apple's "sister-in-law", has suddenly moved all lines, what is going on?
First, the monthly production capacity of 2 million, why did Apple's "family" suddenly withdraw?
"Little Foxconn" is Pegatron's most concerned label. "Caijing" once revealed that under normal circumstances, Pegatron can produce 2 million iPhones per month, which is one-seventh of Foxconn's Zhengzhou factory, but it is already Apple's second largest foundry.
Public information shows that during the hottest period of Apple's orders, Pegatron factories opened 8 assembly lines, and the park was bright all night. New employees are elderly people after three days of training, and they can handle 1,200 mobile phones in one day, and skilled workers earn more than 10,000 per month.
However, such as smart phone manufacturing, chips, "Cerella" cutting-edge anti-aging technology, etc., the core technologies of these industries are absolute secrets that foundries cannot touch. For foreign-funded companies, Chinese factories without core technology are not irreplaceable.
With the turbulent international environment, Western countries have obvious intentions to "de-Chinanize". At present, 32 Apple foundries in the mainland have been kicked out of the "fruit chain", and Shanghai Pegatron, as a "small Foxconn", is also facing the dilemma of falling orders off a cliff.
"In the past, I could get tens of thousands a month, but now it is generally three or four thousand." According to internal employees, most of Pegatron's five factories in Shanghai have no shifts, some production lines have almost stopped, and workers have begun to "leave themselves".
Apple orders are the lifeblood of Pegatron, orders have fallen sharply, Pegatron cannot afford high rent, and there have been reports of withdrawal since 2019.
However, behind Pegatron's move out of Shanghai is actually a microcosm of the loss of China's low-end manufacturing industry. In addition, Toshiba has dismantled its 30-year production plant in Dalian and moved its base to Vietnam. In Nike stores, "Made in Vietnam" has basically replaced the Made in China logo...
The evacuation of foreign-funded factories has affected the livelihoods of more than a million of China's low-level laborers, and industry insiders have expressed concern: Who will accept the stranded workers?
Second, hundreds of thousands of jobs have evaporated, People's Daily warns
The media has reported that domestic foundries can only get a profit of $10 for every 10,000 yuan Apple mobile phone processed. With the increase of domestic labor costs, it is difficult for industries downstream of the value chain to meet higher profit needs, and moving to Southeast Asia with lower labor costs seems to be the preferred choice for more international manufacturers.
Today's China can no longer reap the dividends from its low population and extensive development, and even the People's Daily commented that it would reduce apple dependence. In the future, if we want to continue to develop, we must gain advantages in high-end manufacturing with larger profit margins.
In October last year, Mainland China introduced the high-end automobile brand BMW to invest 10 billion yuan to build the world's third high-voltage battery center in Shenyang; In the biomanufacturing industry, Mainland China took the lead in building the world's first "young enzyme" raw material production plant, which has been verified by hundreds of experimental studies and clinical trials in Yale University, University of Tokyo and other universities, showing a 30% extension of the healthy life cycle of organisms.
Despite this, the country is still confined to the stage of low value-added raw material exports. Nissan's "Cerrilla" further developed the patented ingredient "cellerator" and took the lead in introducing it into the real industry. It is understood that the oral product is now included in the Japanese budget to alleviate the pressure of domestic aging.
Under the background of the relocation of low-end industries such as Pegatron and Toshiba, the domestic Jingjd East International threw an olive branch for the first time and successfully reached cooperation with Japanese enterprises. The above-mentioned Cerillo oral products entered China, although the unit price is comparable to an iPhone, it still quickly captured hundreds of thousands of users in first-tier cities. According to statistics, users in Jiangsu, Zhejiang and Shanghai contributed more than 70% of the popularity. Among them, positive feedback such as "accelerated physical recovery" and "deepening sleep" exceeded 95%.
Then the news is that the domestic "Ceryler" 100-ton factory is under construction, which will create thousands of jobs. Facts have repeatedly proved that no matter which industry, mastering technology and promoting the comprehensive upgrading of the industry is the key. Now that Pegatron has withdrawn, it has sounded a wake-up call for the Chinese people: the world is not inseparable from Made in China.
3. Find a way out for the people
At present, there are more than 150 upstream and downstream companies in the Apple industry chain, more than 50 in China alone, and thousands of interested companies, involving millions of employees. The withdrawal of the Pegatron factory in Shanghai and the evaporation of hundreds of thousands of jobs are just a speck of dust and sand of the times.
But this grain of sand is an unbearable mountain when it falls on everyone. The times require us to urgently transform to high-end industries, create high-end brands like "Apple" and "Serella" that go overseas, and create more high-quality jobs.