From the "world factory" to the throes of transformation, where is the future of Foxconn?
From its submission to the United States to the loss of the mainland, Foxconn, the former tech giant, is experiencing an unprecedented turnaround.
As the world's largest electronics foundry, Foxconn was once a trendsetter in the technology industry. It manufactures for well-known brands such as Apple, Huawei, and Xiaomi, with more than one million employees all over the world. But in recent years, the company's fortunes have changed dramatically.
It all starts with a "honeymoon period" between Foxconn boss Terry Gou and the U.S. government. In 2017, Mr. Gou met with Trump at the White House and pledged to invest $10 billion in Wisconsin to build a factory and create 13,000 jobs. This was seen as a signal that Foxconn was moving closer to the United States.
However, in the end, this investment did not materialize as expected. In 2019, Foxconn announced that it would significantly scale back its investment in Wisconsin, building only one smaller project. U.S. officials expressed disappointment, arguing that Foxconn had broken its promise.
Foxconn's situation in Chinese mainland has also begun to deteriorate. As one of the largest foreign-owned enterprises in China, Foxconn has long been rooted in this land and has millions of employees. However, in recent years, affected by factors such as the Sino-US trade war, Foxconn's production line in China has become even worse.
Seeking breakthroughs on the road of transformation, Foxconn has encountered setbacks in emerging fields
Entering 2024, Foxconn's plight in Chinese mainland will further intensify. Data shows that in the first few months of this year, Foxconn's exports in Henan fell sharply, seen as a signal that Foxconn began to withdraw from Chinese mainland.
Foxconn has stepped up its investment in countries such as India in what is seen as a shift of production capacity outside Chinese mainland. People believe that Foxconn can no longer rely on cheap labor in Chinese mainland as in the past, and must transform to high-end manufacturing.
Foxconn began its transformation a few years ago. It is no longer satisfied with pure OEM production, but has set its sights on emerging industries, such as electric vehicles, artificial intelligence and other fields.
In 2022, Foxconn announced that it would invest billions of dollars in the US state of Ohio to build an electric vehicle factory. This is seen as an important step for Foxconn into the field of electric vehicles. However, the project also encountered a lot of resistance and made slow progress.
In addition to electric vehicles, Foxconn has also made large investments in artificial intelligence, semiconductors and other fields. But Foxconn's development in these emerging areas is still in its infancy, and the future outlook is uncertain.
Transformation or rebirth? What is the future of Foxconn?
The road to transformation has not been smooth. Foxconn is under tremendous pressure from its traditional business, but it also needs to expand into emerging areas. How to balance the two will determine the future direction of Foxconn.
Looking back at Foxconn's development history, it is not difficult to find that this company has been constantly transforming. From the initial electronic foundry, to later involved in mobile phones, computers and other fields, and now aiming at electric vehicles and artificial intelligence, Foxconn has always followed the trend of technology and changed.
But every transformation is accompanied by labor pains. For example, when Foxconn entered the mobile phone industry, it was met with many doubts and criticism. Many people think, how can a foundry make good mobile phone products? But Foxconn still proved itself with practical actions.
Now, Foxconn is once again at a crossroads. It needs to seize the opportunities of emerging technologies, but at the same time, it can't completely abandon its roots. It's like a person, even if he wants to change his face, he can't completely deny his past.
Perhaps, Foxconn's future way out is to find a balance between traditional manufacturing and emerging technologies, give full play to its own advantages in manufacturing, and also embrace innovation. This requires Foxconn to have enough courage and courage to dare to make the right choice at a critical moment.