Foxconn Has Withdrawn From India Vietnam, Focusing On Zhengzhou, What Information Is Transmitted?

Recently, some netizens broke the news: Foxconn pulled the equipment and mold back from Vietnam and re -transported to Shenzhen Longhua.There is no electricity, everything is white.In this regard, some netizens said: I went to India to kill a piglet, and I was restricted by Vietnam. I knew the cornering on the bicycle and hit the tree.

Some netizens teased: come and go, driving the import and export.Logistics transportation may become the biggest winner!

Regardless of the authenticity of this news, we are currently exactly that Foxconn returns to the mainland.According to Hong Kong's "Asia Weekly" on August 5th, Foxconn returned to Mainland China.

It is reported that at the end of July, Hon Hai Precision Industry Co., Ltd. issued a major investment announcement that Foxconn will invest 1 billion yuan to build a new business headquarters building in Zhengzhou and assemble the new Apple iPhone16 series in China.

Investment of about 1 billion yuan, the new business headquarters building prepared for construction, the first phase of the project is located in Zhengdong New District, with a construction area of about 700 acres.

Foxconn withdrew from India and Vietnam and returned to China. What signals did this release?

#01

... India and Vietnam are out of favor ...

In the past few years, with the huge changes in the global supply chain, the low -end manufacturing industry has shifted to developing countries such as Southeast Asia, South Asia.After the epidemic, Apple transferred the Foxconn Industrial Chain to India, Vietnam and other places for dispersing risks.

In July 2015, Guo Taiming announced that it was planned to establish 10 to 12 factories in India by 2020.

Foxconn thought it would be the next world factory that hugged. I didn't expect to fall into the pit!

Let's talk about India first,

Earlier reports were reported that in August 2023, Foxconn began to produce iPhone 15 series Apple mobile phones in the production base of Foxconn's production base in Sripuren Burd, India. The goal is to shorten the difference in shipments in India and mainland China and achieve the supply chain synchronization of the two places.

Bloomberg reported that Foxconn Indian factory followed mainland Chinese factories and provided the iPhone 15 series mobile phones to the global market in just a few weeks. The production cycle of the two places was closely connected. India even claimed that the output value would increase by 5 years in the next 5 years.This is a pity that the three brothers cannot be connected. There are many problems with the iPhone 15 of the Indian factory:

The efficiency is low, and the yield rate is only 50%.It should be known that India's illiterate rate is 25%, and workers have low education. The production of 100 units can only be used in 100 units, and the iPhone 15 good product assembled in the factory is only half.

The supply chain is incomplete.Even if the labor cost is extremely low, some necessary parts still need to be imported from China, and the expensive transportation costs increase the total cost.

What is shocking is that European users monitored that the iPhone produced by India has serious health management problems. E. coli exceeds the standard. It can be imagined how bad Aisan's infrastructure and public health conditions are.And the third brother's family stealing electricity is serious, and Indian residents often stole the electricity of the factory. Who can stand this!

Facing the changing environmental policies, the money earned in India is spent in India. Do n’t want to take it home in one point. Ask vivo and Xiaomi for specific situations.

Therefore, last year, the iPhone15 assembled by the Indian factory had to be returned in large quantities, and Apple had to be forced to reduce the price significantly.

Power is the main reason.Foxconn is often powered off when factories in Vietnam, and Vietnam also forcibly demanded that Foxconn cuts 30%of power consumption.Why is Vietnam a power limit?

Because of the shortage of power in Vietnam, the infrastructure construction is insufficient, and the innate energy structure is single.

According to statistics, Foxconn used more than 8 billion kWh in Vietnam a year, accounting for almost half of Vietnamese enterprises.In fact, not only Foxconn companies, but also well -known companies such as Panasonic and Samsung.Discontinued production not only affects efficiency, but no matter how good the machine can withstand the loss of repeated operation.

Foxconn, which gives Apple's foundry, is probably difficult to withstand difficult conditions such as frequent electricity disconnection and extension of order delivery.

In this regard, the Vietnamese government decided to import a large amount of electricity from China, but due to long -distance transmission, the construction and maintenance costs of the line were extremely high, which brought a lot of challenges to Vietnam's power consumption.The common problem of India and Vietnam is the quality of workers, industrial chains, and infrastructure.On the surface, the labor cost is low, but the actual benefits are low. It is simply a reduction in cost but increasing jokes.

After a circle of Foxconn, he returned to China.Because mainland China has a comprehensive infrastructure, highway railway transportation is developed.In addition, China also has the industrial chain of raw materials, assembly plants, components, and clustering, which greatly reduces product production costs.For example, 7 of Apple's 21 companies are located directly in China.

China's complete industrial chain, positive policy support, and practical workers.With the contrast between India and Vietnam, China is great!

#02

·· New forces of car building?...

The people in the world are bustling, all for benefits.

Foxconn's return to the mainland is a win -win choice. The mainland needs Foxconn to drive industrial upgrading, and Foxconn also needs mainland support.

According to relevant information, Foxconn is of great significance to Henan's economic significance. Last year, the import and export value of the Xinzheng Comprehensive Insurance Zone where the Foxconn Zhengzhou factory was located was nearly 407.3 billion yuan, accounting for half of the total value of Henan Province.

In July, the Henan Provincial Government issued the "Solid Promoting Economic Economic Stability in the second half of 2024", and proposed to strive to exceed 1.5 million vehicles throughout the year, of which more than 800,000 new energy vehicles were.

Foxconn and Zhengzhou rushed in both ways.

Some media predict that Foxconn's return will bring 200,000 jobs.According to many internal employees and recruiters, the Foxconn Zhengzhou factory opened full horsepower. In order to welcome the peak of the new product shipments in August to December, the demand for production line employment increased sharply.Workers' hourly salary rose to 25 yuan, and the manufacturing workshop worked for 3 months, with a bonus of 7,500 yuan.

There are at least 50,000 new employees who have entered the factory in the past two weeks. They are still recruiting people on a large scale. If the subsequent production is missing, the bonus is expected to rise to 8,000 yuan.

However, Foxconn's return seems to have a longer -term plan.

According to relevant news, Foxconn's increase in investment in Zhengzhou is not just for traditional foundry business, but more actively deploying the field of new energy vehicles.It aims to open up new energy -related businesses, including new energy vehicles, energy storage batteries, digital medical and robotic industrial bases.

On July 22, the Henan Provincial People's Government and Foxconn Technology Group signed a strategic cooperation agreement in Zhengzhou.The provincial government attaches great importance to the development of Foxconn in Henan, and the strategic cooperation between the two parties has continued to deepen. The signing of the agreement marks that the cooperation between the two parties has entered a new stage.It is hoped that Foxconn's confidence in investing in Henan will focus on the cultivation of new industries and the research and development of new technologies, and accelerate the promotion of early construction and early effectiveness of signing projects.EssenceFoxconn's increase in investment has strongly refuted the remarks of the supply chain to Sinicization, and highlights the trust of foreign investment in the business environment of mainland China.

According to data released by the Ministry of Commerce, from January to June 2024, the number of new foreign -invested enterprises in the country increased by 14.2%year -on -year to 26,870.Among them, the actual use of foreign investment in the manufacturing industry accounted for 28.4%of the actual use of foreign investment in the country, while the actual proportion of foreign investment in high -tech manufacturing industry increased to 12.8%.

I believe that there will be more express businesses for multinational companies in the future.

·· Concluded ...

China has a broad mind of Hainan, adheres to high levels of reform and opening up, continues to build a first -class business environment of marketization, rule of law, and internationalization. He warmly welcomes every friend who seek win -win cooperation.

At the same time, in the wave of globalization that coexist with opportunities and challenges, maintaining bottom line thinking, how to build its own Chinese brand and enhance China's influence is a question that every Chinese enterprise that wants to seek long -term and stable development should be thoroughly considered.