Foxconn is a company that everyone is familiar with, and most of the Apple phones we use are produced from Foxconn, which has been working with Apple for many years in the economy. But as time goes by, China's labor costs are increasing, and Foxconn, a company, seems to want to move the factory out of the Chinese mainland, but in the end the loss is as high as 170 billion yuan. Let's take a look.
First, what did Foxconn do to lose so much money?
With the continuous decline of the world economy and the background of the new crown epidemic in the past three years, as a Chinese company, known as Apple's foundry, Foxconn no longer believes in the Chinese mainland market labor capacity, and chooses to go to the United States across the ocean to start investing in building factories.
First, the United States may have given correspondingly higher preferential policies, and second, the United States is relatively more mechanized and closer to Apple's headquarters. Therefore, Foxconn's yearning to build a factory in the United States is very high, but because Foxconn later went to the United States to build a factory, the US government regretted not giving a high preferential policy, and the mask scandal during the new crown epidemic fermented, so it caused the failure of Foxconn's investment in building a factory in the United States, and nearly 70 billion yuan was wasted, but this did not defeat Foxconn.
So Foxconn turned its eyes to India, Foxconn believes that India has a very large population and a considerable workforce, so Foxconn is ambitious, and spent $15 billion to build 10 to 12 super factories in India, but only 2 were finally completed, which is obviously far from the plan.
Coupled with the incomplete popularization of quality education in India, and India's infrastructure is relatively backward, especially in the power infrastructure is a very headache, often do not agree on the power outage, Indian workers also often strike, which makes Foxconn who transferred to the Indian market want to cry without tears, losing up to 35 billion yuan, Foxconn has since fallen into its own strange circle can not extricate itself.
Second, Foxconn and China must be closely linked
With the big failure of Foxconn's investment in the United States, India and other countries, Foxconn also clearly realized that China is still its own nest, and Foxconn's boss Gou Taiming was very flavorful before.
He has always believed that Foxconn's factories in China are feeding so many Chinese and providing them with employment, and once even boasted, Chinese mainland If Foxconn is not allowed to build factories in China, Foxconn's bold words that Foxconn will leave immediately are now slapped in the face, and the Chinese government has also done its utmost to Foxconn.
Like the 2022 Zhengzhou workers were owed wages strike, in order to help Foxconn solve this problem, the Zhengzhou government even went to various places to publicize and help Foxconn get through this difficulty, really treating Foxconn as his own child, but his own child seems to have a great opinion about his mother and wants to get rid of his mother's embrace, but it seems that children without mothers cannot stand and survive in society.
Why does Foxconn's investment always fail?
Many netizens will ask, why has Foxconn repeatedly hit a wall in building factories around the world, and what is the reason? The first is that the current world environment is complicated, the environmental situation is grim, and the US government cannot give corresponding support to Chinese enterprises to build factories in the United States, which includes political reasons, economic reasons and so on.
So the United States cannot give benefits to Chinese companies. And Foxconn went to India, Vietnam and other countries to invest in the construction of factories, want to use the cheap labor of these countries, but the quality education level of these countries itself is not high, strikes often occur, and the infrastructure is not as sound as China, in water conservancy, transportation, electricity and other aspects of China has a big gap, so building factories in these countries is not as good as building factories in Chinese mainland to save trouble and peace of mind.
Therefore, after repeatedly hitting a wall and losing 170 billion yuan, Foxconn finally set its sights back on the Chinese mainland and invested its chip fab in China, which can be regarded as a way to bow down to the Chinese government.
epilogue
Foxconn CEO Terry Gou has finally realized that China is the best solution for investment at present, and only China will treat its own enterprises as children, and also hopes that Foxconn will change its attitude towards China in the following days, and do not always take China's kindness to him for granted.
In any case, Foxconn's return to China to invest and build factories this time is bound to bring a ray of light to the chip industry that is stuck in the neck of the United States, I don't know what kind of surprise Foxconn will bring us in the coming days, let's wait and see. I don't know what other netizens think about Foxconn? Welcome to leave a message!