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Reading guide: Guo Taiming is also helpless! India didn't figure it out, and Foxconn was asked to build a factory in Mexico for 27 million
In the tide of globalization, enterprises often choose to carry out transnational layout in order to seek a broader market and lower costs. Foxconn, as a world-renowned electronic manufacturing service provider, is a typical example of its development history. Over the years, Foxconn has relied on close cooperation with technology giants such as Apple to make remarkable achievements in the field of foundry. However, with the transformation of the global industrial chain and the adjustment of the market strategy of customers such as Apple, Foxconn also has to face new challenges and choices, and this person Guo Taiming is also very helpless.
First, the puzzle of the Indian market
In recent years, the Indian market has become a popular area for major enterprises due to its huge population base and growing consumption potential. As Apple's "royal foundry", Foxconn is no exception. In order to cater to the market transfer strategy of customers such as Apple, Foxconn's investment in India has been increasing, and Gou even said that he would transfer 300 billion production capacity to India. However, the actual situation in the Indian market is far from what Foxconn imagined.
The working habits and cultural background of Indian workers are quite different from Foxconn's original management system. Workers in India never work overtime, which not only leads to inefficiency, but also stretches an already stretched capacity. In addition, the quality of workers in India is generally low, resulting in uneven product quality and a yield rate of only about 50%. This undoubtedly brings huge financial losses and reputational risks to Foxconn and Apple.
Faced with various difficulties in the Indian market, Foxconn had to re-examine its market strategy. However, just when the Indian market has not yet been understood, American companies have put forward a new requirement - to lay out artificial intelligence and AI-related hardware factories in Mexico. This is undoubtedly a new opportunity and challenge for Foxconn.
2. Mexico's new journey
Mexico, as a member of the North American Free Trade Area, has strong economic and trade ties with the United States and Canada. In recent years, Mexico has also been actively promoting the development of the manufacturing industry, attracting a large number of foreign-funded enterprises to invest and build factories. U.S. companies have taken advantage of Mexico's geographical advantages, low labor costs, and abundant natural resources, and have moved their production bases to Mexico.
In this context, U.S. companies have asked their factories to step up the deployment of artificial intelligence and AI-related hardware factories in Mexico. As the world's leading electronic manufacturing service provider, Foxconn has naturally become one of the preferred partners of American companies. Despite the difficulties faced by the Indian market, Foxconn decided to seize this new opportunity, investing $27 million in Mexico to buy land and plan to build a factory at a later stage.
However, Foxconn's decision has also sparked some controversy and questioning. Some argue that Foxconn's investment in Mexico is a "big deal" because of the country's unsatisfactory security situation and uncertainty about its trade relationship with the United States. In addition, the quality and technical level of the labor force in Mexico is also relatively low, which may bring certain challenges to Foxconn's production.
However, Foxconn does not seem to care about these doubts and concerns. They believe that Mexico's huge market potential and strong economic and trade ties with the United States will provide strong support for Foxconn's future development. In addition, Foxconn also said that it will increase investment and management of its Mexican factory to ensure production efficiency and product quality.
3. Foxconn's future outlook
Both the Indian market and the Mexican market provide new opportunities and challenges for Foxconn. While the plight of the Indian market has cost Foxconn dearly, Mexico's new journey has also brought new hope to Foxconn. In the future, Foxconn will continue to increase its layout in the global market and continuously improve its competitiveness and market share.
In short, Foxconn's new journey in Mexico, although full of challenges and uncertainties, also provides new opportunities and impetus for its future development. And Foxconn does not pay attention to the development of the mainland market, and will only be led by the nose in the end, I don't know what you think about this?