Foxconn can become a giant enterprise in the field of electronic foundry, there are many influencing factors, one of which is to enjoy the dividends brought by the rapid development of China's manufacturing. It's just that Foxconn's founder Terry Gou has always believed that Foxconn's development is inseparable from Apple's orders.
It is precisely for this reason that Foxconn, as Apple's core foundry, also chose to invest in India to build factories after Apple planned to transfer its production capacity and supply chain to India, and also made additional investments one after another, and even prepared to build a chip packaging and testing factory in India. However, what Foxconn didn't expect was that not long ago, Apple CEO Tim Cook directly said during his visit to China: Apple is inseparable from China's supply chain. Not only that, but Foxconn is now being asked to build a factory in Mexico.
According to the news revealed by the American media, American artificial intelligence companies are asking cooperative manufacturers to invest in the construction of AI-related hardware factories in Mexico to reduce dependence on China's supply chain, and Foxconn is exactly one of them. Not only that, but Foxconn has now invested $27 million in land in western Mexico.
Foxconn previously invested in India to build a factory, not to mention the possibility of Apple's attitude change now, it is very likely that these investments and factories will not only not get more orders from Apple, but even face a series of embarrassing situations. Foxconn's construction of a factory in India can be said to be a very frustration.
Judging from the current news, due to a series of reasons, Foxconn's factory in India has experienced four large-scale shutdowns, and the capacity expansion plan is not going well. It has encountered problems such as low yield rate, low labor quality, and high training costs.
In fact, Foxconn will face many similar problems when it invests in Mexico this time, but Mexico's market environment and business reputation will be better than India's. Previously, India wanted to invite foreign-funded semiconductor companies to invest in the construction of chip factories in India, and also took out tens of billions of dollars in subsidies, but Foxconn's application was submitted but not approved.
Made in India and Made in Mexico are facing similar problems today, that is, although the price of labor is low, it lacks a complete industrial chain and infrastructure construction, and the quality of labor is relatively low, which is difficult to meet some OEM manufacturing industries with technical thresholds.
This is especially true for the artificial intelligence industry, which not only has high requirements for power supply, but also has a high demand for skilled jobs. Nowadays, there is a shortage of related technical jobs in Mexico, which means that Foxconn needs to invest more in Mexico to invest in the construction of factories in Mexico and have enough technical personnel to support it, so it needs to invest more costs to attract technical personnel from other regions.
Judging from the current situation, it is not easy for Foxconn to build an artificial intelligence hardware factory in Mexico to obtain the cost, especially in the absence of relevant companies in Mexico, and the construction of the factory is mainly required by American companies. What's more, Foxconn is now investing 27 million US dollars only for the purchase of land, which means that the comprehensive costs of the next factory construction and personnel costs are far more than these, and Foxconn estimates that it will need to continue to invest more funds to ensure the completion of the factory construction project.
Today's artificial intelligence can be said to be the focus of the field of science and technology, but the future development is not easy to say, so Foxconn's investment in building a factory is generally not optimistic about the outside world.
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