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Foxconn, the world's largest foundry, closely follows Apple's perspective and provides the most iPhone capacity. Originally, Foxconn's iPhones were produced in Chinese mainland, but as Apple increased its layout in the Indian market, Foxconn also transferred its production capacity to India.
Not only that, Foxconn made an important decision to continue to expand India's investment scale and transfer 300 billion production capacity. Some foreign media said: Gou Taiming took his rice bowl away.
Apple CEO Tim Cook visited China at the end of March to meet with senior Chinese officials. This reflects Apple's emphasis on the Chinese market and will continue to develop the Chinese market in the future.
However, it must be recognized that China is not the only layout of Apple, and Apple has been accelerating the diversification of the industrial chain and distributing more production capacity outside the Chinese market. Especially in the Indian market, Cook also shows that he attaches great importance to India.
Some Indian media said that Cook will start a trip to India in April and attend the opening ceremony of India's first Apple retail store to discuss the possibility of strengthening investment cooperation with Indian high-level officials.
It can be seen that Apple has an iron heart to go, and the Chinese market cannot and will not stay. Apple's investment in the Indian market is Apple's business, but Foxconn must pay attention to it.
Foxconn has deployed most of its iPhone production capacity in Chinese mainland, has millions of employees in China, connects hundreds of suppliers, and provides great protection for China's manufacturing economy. Foxconn building factories anywhere can provide a large number of jobs and promote the local economy.
But now Foxconn has made the important decision to transfer 300 billion worth of production capacity to India. Specifically, Foxconn plans to open a new factory in southern India and recruit 50,000 employees in the future. In addition to assembling iPhones at the new plant, some auto parts will also be produced.
Since 2007, Foxconn has been making iPhones for Apple in India, and in the early days it was only producing older iPhone SE models, several generations behind the production capacity of Chinese mainland. In 2020, Foxconn's Indian factory began to assemble the iPhone 11, marking Apple's high-end iPhone production capacity in India.
In the years since, there are Indian-made versions from the iPhone 12 to the iPhone 14, and the mass production time of the Chinese mainland has continued to shrink, and the iPhone 14 series is produced almost simultaneously with the Chinese mainland.
Not only that, India may be the first to supply the iPhone 15, which is the first time in history. Although Foxconn's production of iPhones in India is Apple's meaning, it is not ruled out that Foxconn itself also has the idea of building factories in India.
As a labor-intensive enterprise, Foxconn has abundant labor resources in India and is very cheap, which can greatly improve Foxconn's profit margins. Therefore, Foxconn has no reason to refuse Apple's demand to produce iPhones in India, and even took the initiative to increase investment and build one foundry after another.
Some foreign media said that Gou Taiming took the job away, Gou Taiming caught up with the east wind of the opening of the Chinese mainland market in the early days, first set up an electronics factory in Shenzhen, and then won Apple iPhone orders, continued to expand factory infrastructure in the mainland, and gradually grew into a global foundry giant.
It is the mainland market that gives Gou the opportunity to eat, if there is no mainland, Foxconn may not be able to relate to Apple, after all, Apple values the Chinese market, not Foxconn.
There is only one mainland market, Foxconn can have many, even if there is no Foxconn, Apple can also find BYD, Luxshare Precision and other foundry giants.
But Gou did not know to cherish it, forgetting that without the mainland market, there would be no essence of Foxconn. Once threatened to build a factory in the mainland to give mainlanders food, as long as threatened, Foxconn can be moved away at any time.
I don't know if Gou has ever thought about how he has been ostracized in the decades of development of the mainland, and which place has not welcomed Foxconn's construction of factories and given preferential treatment for land. Even last year, Foxconn's Zhengzhou factory suffered a wave of employee departures, and one person from each village in Zhengzhou, and grassroots cadres took the lead to join Foxconn to allow Foxconn to resume production.
Now that Foxconn's Zhengzhou factory has returned to normal order, it is the production guarantee provided by mainland people for Foxconn. And Gou wants to take the rice bowl away, and he has no plans to turn back.
However, it is not so easy for Foxconn to build a factory in India, on the one hand, the comprehensive quality of the Indian labor force is poor, and it may not be able to ensure quality and quantity.
On the other hand, the Indian manufacturing industry chain is incomplete, and if Apple wants to expand production capacity in India, it needs more factories to invest in India to achieve localized self-sufficiency.
But not all factories have the courage of Foxconn, and with the partnership between Foxconn and Apple, they naturally do not worry about losing Apple orders. But other suppliers are different, at any time may lose Apple order cooperation, in case to India to invest in the factory but lose Apple orders, is not in vain.
Therefore, Foxconn's best choice is to stabilize the continental layout, followed by considering cooperation with Apple. If you really take the rice bowl away, it will be difficult to eat this mouthful of rice again.
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