China's open and friendly business environment has made many foreign companies make a lot of money in China, and of course, they have also brought many jobs to China. This in itself is a good thing for mutual benefit, but it has encountered some twists and turns in the past two years.
Some companies want to slowly transfer the supply chain from Chinese mainland, such as Apple, and began to slowly transfer the production capacity of Chinese mainland to India. In this way, Foxconn, which earns huge profits by making huge profits for Apple's OEM, will of course follow Apple's footsteps and begin to invest in building factories in India.
In fact, India began to produce some low-end mobile phones for Apple as early as 2017, but the quality of the production is really indescribable. Even the Tata Group, India's largest conglomerate, whose subsidiaries produce phone cases for Apple, only have a yield rate of about 50% in the end.
But even if there are all kinds of problems associated with investing in a factory in India, it still hasn't stopped Apple. According to the news of the Financial Associated Press on April 10, in India's 2024 fiscal year, India has assembled an iPhone with an output value of about $14 billion for Apple. So far, Apple has produced about 1/7 of the world's iPhones in India.
As of March this year, about two-thirds of the Apple phones made in India in the past year were manufactured by Foxconn. Foxconn still attaches great importance to the Indian factory, and now with the gradual expansion of production capacity, Foxconn is also considering building collective dormitories for employees in the Indian factory.
Previously, the employees of the Foxconn factory in India were still at home, and the company's commuter bus took them to the factory. But this is relatively inefficient, so Foxconn plans to spend 11 billion yuan to build staff dormitories.
In addition to India, Apple has also shifted part of its supply chain to Southeast Asia. In April, Apple's CEO Tim Cook ended his visit to Vietnam and Indonesia, and it was reported that Apple would probably expand its business in Southeast Asia next.
When Cook visited Hanoi, Vietnam, Apple's official website released news that Apple's investment in Vietnam would be further increased. Since 2019, up to now, Apple has successively invested about 400 trillion VND, equivalent to about 112 billion yuan, in Vietnam.
During a subsequent visit to Jakarta, the capital of Indonesia, Cook also said that Apple would probably consider building a factory in Indonesia in the future. From Apple's series of plans, we can see that they also attach great importance to the entire Southeast Asian market.
Of course, it is not only Apple, but Tesla is also interested in increasing investment in India. On April 16, it was reported that Musk is expected to visit India soon, and will announce the news of Tesla's construction of a factory in India, with an investment scale of about 20~3 billion US dollars.
Although the latest news on April 20 that Musk postponed his plan to visit India on his social account, he did not cancel it.
Not only that, Musk also posted that Tesla needs to lay off about 10% of its workforce. Originally, Tesla had about 145,000 employees worldwide, and if it were to lay off 10%, it would be 14,500. It can be said that Tesla has the largest layoff since 2017. Among the layoffs, many departments in China have already been laid off.
Whether it is Apple or Tesla, it can be seen from their behavior that these international giants are indeed slowly shifting their investment to India. In fact, we don't have to worry too much about these supply chain shifts.
With the gradual advancement of China's industrial upgrading, our domestic high-tech companies can bring new jobs to the country. For example, many foreign companies want to make the supply chain not overly dependent on China, and we are the same, and it will also be a risk to be overly dependent on foreign investment in the economy.
I believe that no matter where these corporate giants focus on the industry, we can have our own coping strategies.
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