A few days ago, Foxconn announced that it would stop its joint venture chip project with India's Vedanta Consortium, which proves that Foxconn is extremely disappointed in India. With Foxconn's withdrawal, it will affect more foreign-funded enterprises to retreat from investing in India. Naturally, it is difficult for Indian manufacturing to develop.
1. India is greedy and immoral
India's greed is once again gaining global attention for its actions against Chinese mobile phones. In recent years, India has frequently taken measures against Chinese mobile phone companies entering the Indian market, especially recently, India plans to confiscate nearly 5 billion yuan from Xiaomi, which has pushed India to the forefront.
At this time, the global media once again brought up India's old accounts, such as India's plan to fine Vodafone US$5 billion many years ago, and even quickly amended the law to achieve the goal, but that farce eventually became a joke. After India amended the law for Vodafone, the Indian taxation department believed that this was an opportunity to make a fortune, so it issued a fine of more than 10 billion US dollars to dozens of European and American companies, which eventually triggered joint pressure from Europe and the United States. huge fines.
India has also successively fined European and American companies such as Nokia, Amazon, and Wal-Mart. Among them, Nokia chose to completely shut down its Indian business and withdraw from the Indian market because of the Indian fine. The most eye-catching is the compulsory acquisition of Wistron by the Indian consortium.
Wistron is an OEM manufacturer. It originally owned a factory of 80,000 people in mainland China. However, at the request of Apple, Wistron sold the factory in mainland China and devoted itself to India. However, it took more than two years to develop. 10,000 employees, and during the period, they often faced problems such as suspension of Indian employees. Even so, the Indian consortium Tata forced the acquisition of this factory in April this year. Wistron, under anger, announced the closure of all Indian businesses and exited India like Nokia. market.
2. The development of Foxconn in India is also quite unsatisfactory
Foxconn actually planned to invest US$5 billion in India as early as 2014, but progress has been slow since then. The Indian media even believed that Foxconn was just drawing cakes and not investing in India sincerely. Until Foxconn cooperated with Xiaomi to build a factory in India, in 2017 Xiaomi and Foxconn successfully established factories in India in 2010, and Xiaomi has thus become India's largest mobile phone brand.
The success of the cooperation with Xiaomi has opened up the situation for Foxconn. In 2019, driven by Apple, Foxconn also established a larger foundry in India to produce iPhones for Apple. However, Foxconn has developed in India for more than three years, and only has a factory in India with 17,000 people. This is not the same as Zhengzhou Foxconn, which has 300,000 employees in just two years.
After Foxconn opened up the situation in India, it began to show goodwill to India, saying that it would further expand the Indian factory. It is estimated that it will take another three years to increase the number of employees in the Indian factory to 70,000; at the same time, it plans to build 28 Nanochip factory.
As Wistron withdrew from the Indian market, Foxconn began to feel the complexity of India. It recently announced that it will slow down its investment plan in India, and the number of employees in the Indian factory will only increase to 50,000; now it has announced its withdrawal from Vedanta The joint venture plan of Foxconn has stopped participating in the chip project, which undoubtedly means that Foxconn has suffered a major setback in India.
3. Made in India into a castle in the air
Foxconn's reduction in India's investment plan and its withdrawal from India's chip projects have a far-reaching impact, which means that Foxconn, an enterprise, no longer recognizes Indian manufacturing, and worries that its development in India may also be harvested by Indian consortiums like Wistron, proving that India is The reputation of a foreign cemetery.
Xiaomi has also taken measures recently after being fined a huge amount by India and may be confiscated nearly 5 billion yuan. Indian media pointed out that the number of employees of Xiaomi India has rapidly decreased from 1,500 to 1,000. Will it continue to reduce employees in the future? Quantity preference remains to be seen.
Compared with the reduction of investment in India by these two companies, other foreign-funded companies simply closed their Indian companies like Wistron. According to statistics, more than 1,700 foreign-funded companies have been deregistered in India since last year, which accounts for 1% of the registered foreign capital in India. The proportion of more than 5,000 companies is as high as one-third, showing that the withdrawal of foreign capital from India has become a trend.
The strategy of “Made in India” was proposed by Modi after he took office as Prime Minister in 2014. After so many years, such achievements have been made. Now these foreign companies have withdrawn from the Indian market one after another. It is becoming a castle in the air.