"Foxconn is going to India to build a factory!" This news was like a bombshell, instantly blowing up the global electronics manufacturing market. Why did Apple's OEM boss Foxconn go to India to build a factory? Isn't life hard in China? What's the mystery behind it?
In recent years, Apple has gradually shifted its production line from China to India, and there are multiple factors behind this. First, the uncertainty caused by the trade war between China and the United States has forced Apple to find a new production base. Secondly, the Indian government's support policy for the electronics manufacturing industry is also an important reason. Furthermore, Apple wants to diversify its supply chain to reduce its dependence on a single country.
Against this backdrop, Foxconn decided to follow in Apple's footsteps and plan to build a factory in India. This seems like a wise decision, given India's large labor market and low labor costs. Foxconn hopes that by building a factory in India, it will not only continue to provide OEM services for Apple, but also open up new markets. But will things really go so well?
Let's take a look at the experience of foreign companies building factories in India, and we can see that the answer is not optimistic. Xiaomi has been fined hundreds of millions of yuan for trumped-up charges, and tech giants such as Apple and Google have also suffered in the Indian market. Not long after Taiwan's Wistron entered the Indian foundry industry, it announced a complete exit, and its factory was acquired by the Tata Group. It seems that India is not a "manufacturing paradise".
Speaking of the Tata Group, this is one of the giants in India. THEY NOT ONLY ACQUIRED WISTRON'S FACTORY, BUT ALSO PLANNED TO ACQUIRE A 51% STAKE IN THE INDIAN MARKET OF VIVO, A DOMESTIC MOBILE PHONE BRAND, TO DOMINATE THE COMPANY'S OPERATIONS IN THE INDIAN MARKET. Tata's expansion plans have made India's manufacturing environment more complex and brought more challenges to Foxconn.
Faced with these challenges, Foxconn decided to adjust its strategy. Not only did they continue to build factories in India, but they also chose to set up two new factories in Vietnam. Why has Vietnam become Foxconn's new favorite? First of all, labor costs in Vietnam are similarly low, and local workers are more productive and stable. Secondly, Vietnam's mobile phone industry chain is relatively complete and the business environment is more stable, which makes Foxconn see the prospect of investing in Vietnam.
Foxconn's head, Terry Gou, is a scheming man. He quickly made the decision to set up a factory in Vietnam when the risks of building a factory in India surfaced. This is not only to diversify risks, but also to better cooperate with Apple's industrial chain transfer plan. Such a decision not only shows Gou's strategic vision, but also avoids more political and economic risks for Foxconn.
Foxconn's production capacity transfer is undoubtedly a blow to the domestic mobile phone industry chain. With the relocation of production lines, domestic jobs and orders will gradually decrease. This not only affects the company's revenue, but also poses a challenge to the stability of the entire industry chain. For those small and medium-sized enterprises that rely on Foxconn's orders, this is a big shock.
In the face of this situation, the domestic mobile phone industry chain must adopt a positive response strategy. First of all, accelerate the iterative upgrading of products and improve the competitiveness of products. Second, we should actively explore new markets and reduce our dependence on a single market. In addition, the government should also introduce relevant policies to support the development of local enterprises and attract more high-end manufacturing to return.
In this era of globalization, the transfer of the industrial chain is inevitable, but how to find new opportunities and development space in change is a problem that every enterprise and industry needs to think about. The story of Foxconn is just a chess piece in this big chess game, and we need to see the bigger picture.
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