Text/William Technologies
Editor/William Technologies
preface
In recent years, Huawei, as a leader in the development of 5G technology, has been continuously sanctioned and ostracized by the United States. However, these sanctions have not stopped Huawei's development, but have produced a series of changes and challenges. This article will discuss the difficulties faced by Huawei and how to deal with them, revealing the difficulties and prospects faced by processing agency companies Flextronics and Foxconn under the sanctions, and the rise of BYD as a beneficiary of sanctions.
Difficulties encountered by Huawei and how to deal with them
As a world-renowned manufacturer of communications equipment, Huawei has not only achieved great success in the domestic market in recent years, but also achieved a leading position in the international market. However, the US government's sanctions have brought serious challenges to Huawei. It not only restricts cooperation with U.S. companies, but also puts Huawei on an "entity blacklist" to try to stop its rise in the 5G field by various means.
Faced with this situation, Huawei was not discouraged, but actively adjusted its internal structure and increased R&D investment. With independent R&D as the core, Huawei is determined to liberate productivity and seek independent development. At the same time, Huawei is also looking for new partners, and BYD has become the first choice. The two sides worked closely together to avoid the impact of some sanctions on Huawei. In addition, Huawei has also begun to consider building its own production line and is no longer at the mercy of others, which allows Huawei to better cope with the challenge of sanctions.
However, Huawei's adjustment has had a huge impact on Huawei's former partners Flex and Foxconn. Flex had blindly cut off supply, believing that it would stifle Huawei's production capacity, but did not expect to be in trouble, facing employee resignations and financial crisis. In response to the crisis, Flex had to sell a new factory, which was eventually acquired by BYD.
Foxconn is also caught in the "no-order connection" dilemma, often losing money, and the outlook is not optimistic. At the same time, BYD emerged as a winner under sanctions with its keen market awareness and aggressive actions. BYD received an order from Huawei, showed efficiency and sincerity in the cooperation, and successfully solved the production problem of Huawei mobile phones. This has led to the rapid rise of BYD, which not only stabilized the cooperation with Huawei, but also enhanced its influence in the industry chain.
The dilemma and prospects faced by Flextronics and Foxconn
1. The dilemma of great creativity and how to deal with it
Flex was once one of Huawei's important agent processing partners, but in the face of Huawei's sanctions, Flex chose to cut off supply. They thought that doing so would stifle Huawei's production capacity, but they did not expect to be trapped by this decision. After Huawei cut off supply, Flex suddenly lost its major customers, and orders dropped sharply, resulting in a break in the capital chain and the departure of employees. To weather the storm, Flex had to sell its newly built plant to raise funds to ease its financial crisis. In the end, BYD acquired the plants, and Flex was in an unprecedented situation.
Faced with this situation, Flextronics can only strengthen its own innovation and independent research and development capabilities and find new cooperation opportunities. While Huawei's supply disruption has put enormous pressure on Flex, it has also given them an opportunity to reflect and change. By increasing investment in technological innovation, improving independent research and development capabilities, finding new processing partners, and expanding business in other fields, they can reduce their dependence on Huawei and improve their competitiveness.
2. Foxconn's dilemma and how to deal with it
Foxconn, one of the world's largest electronics OEMs, also works closely with Huawei. However, in the context of Huawei's sanctions, Foxconn also faces great challenges. Not only important orders are lost, but often losses, and the outlook is worrying. Faced with this situation, Foxconn urgently needs to adjust its business strategy to adapt to changes in the industry.
Foxconn can seek a breakthrough in order to get out of the predicament in the following ways. In order to attract more partners and orders, they can increase their investment in technological innovation and independent research and development. Secondly, it can expand its business to other fields such as smart home and new energy, reduce its dependence on electronic OEMs, and achieve diversified development. In addition, Foxconn can find new OEM partners to expand its business scope and reduce its dependence on a single customer.
Under the rise and sanctions of BYD, as a company with batteries and new energy vehicles as its main business, BYD and Huawei also cooperate closely. Under the sanctions, BYD successfully obtained orders from Huawei and showed high efficiency and sincerity in cooperation. BYD has not only stabilized its cooperative relationship with Huawei, but also improved its influence in the industrial chain by effectively solving the problem of Huawei's mobile phone production. Due to Huawei's global popularity and market influence, BYD has gained more opportunities and partners, enabling the company to rise rapidly.
The reason why BYD can become a beneficiary under sanctions is inseparable from its keen market sense and positive actions. BYD has accurate judgment on market demand, timely adjusted its strategy, and its cooperation with Huawei has been highly recognized by both parties. Through cooperation with Huawei, BYD has not only made breakthroughs in production capacity and technology, but also obtained more resources and opportunities. Despite the challenges, BYD has successfully responded to the challenges brought by sanctions with keen market insight and proactive actions, achieving its own rapid development.
summary
In the face of sanctions, Huawei actively adjusted its internal structure, increased R&D investment, and sought independent development with independent R&D as the core. Huawei's adjustment not only enables it to better cope with the challenge of sanctions, but also stimulates the difficulties and changes of agent processing companies Flextronics and Foxconn. As partners of Huawei, Flex and Foxconn face great challenges, but also have the opportunity to reduce their dependence on Huawei through strengthening innovation and independent research and development, and realize their own transformation and development.
As a beneficiary of sanctions, BYD has successfully obtained orders from Huawei with its keen market sense and aggressive actions, and achieved a rapid rise. Its successful experience shows the importance of independent research and development and independent industrial chain. Although the sanctions have brought challenges to Huawei, it has also generated a series of changes and opportunities, bringing changes and progress to the industry.
In summary, in the face of sanctions, Huawei has adjusted its internal structure, found new partners, and actively responded to challenges to achieve stable development. Flex and Foxconn are agency processing companies, they face a severe test, need to strengthen innovation and independent research and development to adapt to changes in the industry. As a beneficiary, BYD has successfully risen through a keen sense of the market and positive actions. This example highlights the importance of independent R&D and independent industrial chain, and also brings new challenges and opportunities to agent processing enterprises.
As mentioned in the above article, what do you think about "cutting off Huawei's supply" but "provoking fire", and now the factory has closed down and the factory buildings have been sold"?
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