Over the past few years, the European and American media, for various purposes, have advocated that manufacturing in India is a hope and will have the opportunity to surpass manufacturing in China. Coupled with the pressure of Apple to pursue low labor costs, Foxconn and other Apple foundries have rushed to India to set up factories. However, in just 3 years Years have passed, but manufacturing in India has become a poison, and these foundries have swallowed a bitter pill.
A few days ago, news from the industrial chain indicated that Wistron, one of Apple's important foundries, only received about 1% of the orders for the iPhone 15. It can be said that this is entirely Apple's intention. A victim of the Make in India dream.
Under the pressure of Apple and the temptation of India's low labor costs, Wistron is the most decisive among many Apple foundries to break away from Chinese manufacturing. It will sell a factory with 80,000 people in mainland China to Luxshare Precision in 2020 , went to India to set up a factory full of confidence, thinking that it could replicate the success as quickly as it did in mainland China before, but the result was completely unexpected.
In 2020, Wistron went to India to set up a factory. As of the beginning of this year, its factory in India had no more than 10,000 employees. It can be seen that Wistron’s development in India is not smooth. In contrast, Foxconn opened a factory in Zhengzhou before. , Zhengzhou fully cooperated, and completed the construction of the factory in just 2 years and had 300,000 workers.
The reason for the slow development of Wistron in India is the complex culture of India. Each state in India has its own language, and the education level of Indian workers is not high. This makes it difficult for Wistron and other foundries to find qualified employees in India. As a result, the development speed of Wistron in India is much slower than that in mainland China.
Wistron’s bumpy development in India has also paid a huge price. In the past three years since it opened in India, the Indian factory has been difficult to maintain stability. During the past three years of India's development, not only did it fail to make money, it also lost tens of millions.
At the beginning of this year, the Indian consortium took a fancy to Wistron's factories in India. Even though Wistron was unwilling, it was eventually forced to sell the Indian factories to the Indian consortium at a low price. In desperation, Wistron chose to close all Indian factories. At this time, Wistron realized that its success in mainland China was not only due to its efforts, but also the good business environment in mainland China.
After suffering a severe setback in India, Wistron tried to return to mainland China to set up factories again. However, there are too many foundries in mainland China, not only the foundries opened by Chinese Taiwanese companies in mainland China, but also BYD, which is rising in mainland China. There are many foundries such as Luxshare Precision, and Luxshare Precision has been reported to have won about 28% of the iPhone 15 orders. It can be said that there is no hope for Wistron’s return to mainland China, and Apple, the object that was once flattered, did not consider Wistron’s obedience before. Its request and the friendship of going all out to print and set up factories only gave it 1% of the orders. It can be said that Wistron has basically withdrawn from the mobile phone OEM industry.
In fact, not only Wistron suffered setbacks in India, but Foxconn’s suppliers also suffered setbacks in India. Guo Taiqiang, the younger brother of Foxconn founder Terry Gou, set up a power supply factory in India to support Foxconn’s iPhone, Mac and other Apple products. In March of this year, a fire broke out suddenly. Looking back at how Wistron was forced to sell itself step by step by an Indian consortium, it seems that a fire in Guo Taiqiang's factory in India was not easy.
It can be said that these foundries of Apple were tempted by the illusion of Made in India at the beginning, and they suffered setbacks in India in just a few years, making them realize that Made in India is nothing but nothing, and that Made in India cannot be compared with Made in China at all. It used this as a bait to repeatedly harvest foreign-funded enterprises. Faced with such a result, it is estimated that Wistron has already regretted leaving China's manufacturing. It is clear at a glance whether Made in India is a sweet pastry or a poison.