Made in China made Foxconn possible, but Foxconn founder Terry Gou believed that this was entirely the result of his own efforts. However, with the setbacks of Apple's foundries in India, they finally recognized the reality. Foxconn's miracle was based on Made in China, leaving Made in China. Its glory will also come to an end.
Driven by Apple, Foxconn invested heavily in India and threatened to build another Foxconn in India. However, the rhetoric is easy to say, but the reality is far from his imagination. Building another Foxconn in India is just Gou Taiming's fantasy.
In 2019, Terry Gou invested heavily in India and even planned to build a very large factory in India. However, three years later, the number of employees in the Foxconn factory in India has only reached 17,000. Seeing that development is too slow, Foxconn said it will accelerate investment in India and continue to invest in India. It took three years to increase the number of employees to 70,000.
However, the experience of another Foxconn peer, Wistron, in India has given Foxconn a chill. Wistron was more decisive than Foxconn in investing in India. Wistron sold its iPhone OEM factory in mainland China, and the employees of that factory The number reached 80,000, and then it started again in India. However, it took two years to develop 10,000 employees. Such a "small scale" was still targeted by the Indian consortium. In the end, Wistron was forced to sell the factory to the Indian consortium. He immediately announced the closure of all businesses and left India in despair.
As Wistron suffered a heavy blow, Foxconn lowered its voice and stated that it plans to increase the number of employees at its Indian factory to 50,000 in the next three years, a reduction of 20,000 from the original plan. Apparently it is also worried that once it grows, the Indian consortium will also have It is possible to harvest its fruits; in fact, in March this year, there was a fire in the power supply factory set up by Terry Gou's brother Terry Gou in India. Now it seems that the fire may not be simple.
In addition to the eager attention of local consortiums in India, Wistron and Foxconn also face many difficulties in their development in India. India's culture is quite complex, and people's living habits vary widely from place to place. This has led to factories like Foxconn that require a huge number of employees to be located in India. Facing a very complex management environment.
Secondly, Indian employees are generally unwilling to work overtime, which conflicts with Foxconn's preference to provide overtime pay to encourage employees to work overtime for a long time. Wistron has even seen many Indian employees smashing factories, which has affected their development in India. Huge trouble. It is reported that Wistron not only failed to make any money during its two years of development in India, it also suffered a partial loss.
In contrast, the factory management of Foxconn and Wistron in mainland China is much easier. The information disclosed by the media pointed out that Foxconn employees work as much as 100 hours of overtime per month, and employees are restricted to their workstations. 5 minutes, so that these employees fell asleep tired after returning to the dormitory. 8 people live together in the dormitory. Due to the large difference in working hours and overwork, they may even live together for several months. show up, let alone get to know each other.
China's industrial chain is far more complete than India's. China's infrastructure is more complete and provides an efficient logistics network. Therefore, the parts sent by industrial chain companies to Foxconn's production line can be delivered on time and on time, thus achieving high production efficiency. Let Foxconn thrive in mainland China.
Nowadays, Foxconn is encountering many difficulties in India. Not only is Foxconn's foundry developing slowly, but the original plan to participate in India's tens of billions of US dollar chip factories has also been abandoned by Foxconn. Obviously, Foxconn has deeply realized that India has too many pitfalls. India is known as the graveyard of foreign investment. The market is not without reasons, and this makes Foxconn sober. It is Made in China that makes it, not that it makes Made in China.