Recently, due to the impact of the epidemic, there has been a very serious chip shortage crisis in the world. This can be said to be both a threat and an opportunity for global enterprises, after all, the semiconductor consumer market has never been as vast as it is now. As a result, more and more companies are scrambling to enter the game, including Geely and Foxconn.
Recently, Geely and Foxconn joined forces to create a new company in the semiconductor sector that deals with integrated circuits. Obviously, Geely and Foxconn want to join forces to build a core, so can Geely and Foxconn succeed? If the optimistic estimate of the success of the core, then what impact will it have on these two companies?
Geely and Foxconn established new companies
On December 29, Shandong Fujikang Intelligent Manufacturing Co., Ltd. was established, the main shareholders of this company are two major enterprises in China, presumably many people can guess from the name, yes, it is Foxconn and Geely, the main business of this newly established company is actually integrated circuit manufacturing. To put it bluntly, it is a chip.
Therefore, from the establishment of this company, it is not difficult for us to see that Geely and Foxconn seem to be ready to join forces to build a core. There may be many people who are not clear why Geely and Foxconn are working together to make cores, and why they can't go it alone. In fact, the reason for this is not disclosed by these two companies, and we can only guess. Maybe it is because these two companies believe that their strength has no way to independently produce chips that are currently in short supply in the world?
So, what exactly is the reason why Geely and Foxconn want to make cores?
Why do Geely and Foxconn want to build cores?
First of all, the global core is missing, and the market gap is large
Today, the global lack of core is still very serious, many authoritative institutions are expected to continue until the second half of next year, such a forecast is also equivalent to releasing a signal, that is, the global lack of core will not be alleviated for a long time, in a long period of time the consumer market is still broad.
The vast consumer market will undoubtedly bring huge economic benefits, and Geely and Foxconn may see this and want to jointly build a core.
Second, hold the pulse of the times and enhance their market competitiveness
Nowadays, with the development of society and the advancement of science and technology, the role of chips on the international stage is becoming more and more important, Foxconn may not want to do foundries all the time, and Geely Automobile may also want to enhance its chip strength. All in all, Geely and Foxconn may be dissatisfied with the status quo, and may even be a little worried about the future, wanting to take advantage of the current opportunity to enhance their market competitiveness and prevent themselves from being abandoned by the tide of the future era as much as possible.
Geely and Foxconn's core building, such behavior is undoubtedly correct, so at the moment when Fujikang lands, can The core dream of Geely and Foxconn finally be realized?
Can Geely and Foxconn make cores successful?
First of all, Geely's self-developed chips have experience
In fact, geely and Foxconn's core dream is still very likely to be realized, in terms of self-developed chips, Geely Group itself has experience in self-developed chips. What about Foxconn? In fact, Foxconn may not necessarily drag its legs, Foxconn set up a chip packaging and testing factory in Qingdao, and bought 46 domestic lithography machines in one go, which should also be helpful for chip production.
Geely Group has the ability to develop its own chips, Foxconn has the ability to produce chips, and the combination of the two, successful core manufacturing is not necessarily impossible.
Second, funds are guaranteed
In 2018, Geely Automobile's economic income exceeded 300 billion yuan and entered the top 500 in the country. In 2019, Geely Group also achieved a good result of 971.101 billion yuan. We can see that the economic benefits of Geely Automobile have been very good. And Foxconn? Although Foxconn's overseas layout has repeatedly failed in recent years, it has stable Apple orders, so Foxconn's financial strength should not be weak.
In short, Foxconn and Geely have strong capital, and the core needs a lot of capital investment, so in the case of funds in place, Geely and Foxconn's core may not be without the possibility of success.
Nowadays, Geely and Foxconn's core manufacturing should have taken a step, and the core-making dream of these two companies is likely to be realized in the future, so what kind of impact will it have on these two companies?
The impact on these two businesses
First, increase the economic benefits of these two companies
Nowadays, the global chip market gap is still very large, if Geely and Foxconn can really successfully enter the game, to a certain extent, it will undoubtedly bring a huge consumer market to Geely and Foxconn, so that not only in terms of chips, but even their respective main businesses, may be stained with light. For the economic benefits of Geely and Foxconn, there will also be a certain degree of increase.
Second, increase the market influence of these two companies
Geely Group is doing the automobile business, Foxconn said that the good point is the foundry, and the ugly point is an assembly plant, these two companies have now entered a very hot chip market, which may be a bit unexpected and unbelievable. Now that such a thing has happened, Geely and Foxconn have entered the chip field.
In this way, it will undoubtedly greatly increase the international status and influence of Geely and Foxconn, and it will be of great help to the future development and progress of these two companies.
summary
Geely and Foxconn set up a new semiconductor company and are ready to harvest a wave of current semiconductor dividends, which is still very helpful for the development of domestic semiconductor business. In the future, I hope that geely and Foxconn's core-making actions can progress smoothly, so that the world can see the shining "Chinese core".