Foxconn, suddenly!

Positive signals pop up!

Official website, Hon Hai Technology Group, reported today that Foxconn Technology Group, a subsidiary of Hon Hai Technology Group, signed the Strategic Cooperation Agreement between Henan Provincial Government and Foxconn Technology Group to Accelerate New Business Projects with the Henan Provincial Government. The signing ceremony was held in Zhengzhou. According to the agreement, the Henan provincial government supports Foxconn to build a new business headquarters in Zhengzhou. Foxconn will give full play to its core competitiveness in the field of smart manufacturing, as well as its advantages in technical reserves and industrial chain resources on a global scale, accelerate the landing of electric vehicles, energy storage batteries, digital health and robotics industries, focus on Henan, and build a global high-end manufacturing industrial chain and strategic emerging industry ecosystem.

According to the news of Reference News Network, Apple CEO Cook also went to Chinese mainland to reorganize the supply chain because the iPhone15 assembled by the Indian factory was not returned smoothly last year and was forced to cut prices sharply. After this lesson, Apple has transferred part of its production capacity back to Chinese mainland foundry this year, and BYD, Luxshare and other big manufacturers have joined the iPhone16 supply chain and become Apple’s latest OEM partners.

Recently, there are media reports that Foxconn, Apple’s main foundry, has also started to recruit workers in the peak season, and the current hourly wage of Foxconn factory in Zhengzhou Airport has been raised to 25 yuan. Although there is still a gap above 30 yuan in the period of the most shortage of manpower, it is relatively high in the same period. If the worker chooses the refund mode, he can get an extra bonus of 7500 yuan after 90 days in office.

Foxconn burst

Foxconn Technology Group, a subsidiary of Hon Hai Technology Group, signed the Strategic Cooperation Agreement between Henan Provincial Government and Foxconn Technology Group to Accelerate New Business Projects with the Henan Provincial Government. The signing ceremony was held in Zhengzhou.

According to the agreement, the Henan provincial government supports Foxconn to build a new business headquarters in Zhengzhou. Foxconn will give full play to its core competitiveness in the field of smart manufacturing, as well as its advantages in technical reserves and industrial chain resources on a global scale, accelerate the landing of electric vehicles, energy storage batteries, digital health and robotics industries, focus on Henan, and build a global high-end manufacturing industrial chain and strategic emerging industry ecosystem.

In recent years, Hon Hai Technology Group has actively developed 3+3 new businesses and launched a global layout. Foxconn’s new business headquarters in Zhengzhou, Henan Province, is a very important part of the group’s new business development in Chinese mainland.

This strategic cooperation focuses on the transformation of the Group’s 3+3 strategic industries, that is, three emerging industries, namely electric vehicles, digital health and robots, as well as three new technical fields, namely AI, semiconductors and new generation mobile communication, and actively cooperates in the fields of making development plans, core technology research, overall management of industrial investment, industrial landing, market development and customer development, gathering and training of key talents and professionals, and building industrial ecosystem, and makes joint efforts to build Foxconn’s new business headquarters into a new enterprise.

To this end, Foxconn will invest in the construction of a new business headquarters building in Zhengzhou to carry the functions of the new business headquarters. The first phase of the project is located in Zhengdong New District, with a construction area of about 700 hectares and a total investment of about 1 billion yuan. It will mainly build seven centers, including headquarters management center, R&D center and engineering center, strategic industrial development center, strategic industrial financial platform, industrial research institute and key talent center, marketing center and supply chain management center, which will provide industrial resources and technical support for Foxconn to implement the 3+3 strategy in mainland China.

Around the implementation of the "3+3" strategy, Foxconn will focus on the layout of electric vehicle trial production centers, solid-state batteries and other projects in Zhengzhou Airport Economic Comprehensive Experimental Zone in the near future. The electric vehicle trial production center project will plan to build a world-class electric vehicle demonstration production line, build a display platform and a world-class lighthouse factory to provide manufacturing services to well-known automobile brands at home and abroad based on advanced, pilot and pioneering development strategies, and lay a solid foundation for the subsequent mass production of electric vehicles. The goal is to build Zhengzhou Airport into the core production base of Foxconn electric vehicles. As for the solid-state battery project, we will closely follow the industrial development trend, give full play to Foxconn’s long-term accumulated technical advantages, adhere to the principle of "overall planning and step-by-step implementation", and lay out and develop the solid-state battery industry in Zhengzhou Airport, focusing on the development and manufacturing of solid electrolyte, semi-solid and all-solid batteries.

Apple production capacity has also returned.

According to the reference news, Taiwan Province’s "China Times News Network" reported on July 23rd that in recent years, Apple implemented the strategy of "removing risks" and diversifying its supply chain, and turned its orders to India, but the actual operation was obviously not smooth. Last year, the iPhone15 assembled by the Indian factory was returned, and it was forced to cut prices sharply. Apple CEO Cook also went to Chinese mainland to reorganize the supply chain. After this lesson, Apple has transferred part of its production capacity back to Chinese mainland foundry this year, and BYD, Luxshare and other big manufacturers have joined the iPhone16 supply chain and become Apple’s latest OEM partners.

Foxconn’s production base in Sri Perumbudur, India, began to produce iPhone15 series Apple phones in August 2023, with the goal of shortening the shipping time difference between India and Chinese mainland and synchronizing the supply chains of the two places. Bloomberg reported that Foxconn India factory followed Chinese mainland factory and supplied iPhone15 series mobile phones to the global market only a few weeks later, and the production cycles of the two places were closely connected, so India even threatened to increase its output value five times in the next five years.

However, in fact, the number of iPhone15 OEMs in Indian factories accounts for only 10%. Indian factories also need to import a large number of spare parts from Chinese mainland, which affects their quality and efficiency. There are still problems in the yield of iPhone OEM in India (only about 50%) and hygiene management (E.coli exceeding the standard). These two problems caused troubles when the products were exported to Europe and Chinese mainland, which affected the market sales. Therefore, Apple decided to reduce the price and promote sales. During his visit to China, Cook not only went to Apple retail stores to interact with consumers, but also met with companies such as BYD and Luxshare, saying that he would strengthen cooperation with enterprises in Chinese mainland.

According to the report, a well-known smartphone blogger recently pointed out on the social platform that the upcoming iPhone16 series is still mainly assembled in Chinese mainland, and some high-end flagship models have been transferred from Foxconn to BYD, which also proves that the mainland is still in the leading position in the OEM level of smartphones, and it is not so easy to transfer to other countries such as India immediately.

It is also reported that Foxconn, Apple’s main foundry, has also started to recruit workers in the peak season, and the current hourly wage of Foxconn factory in Zhengzhou Airport has been raised to 25 yuan. Although there is still a gap above 30 yuan in the period of the most shortage of manpower, it is relatively high in the same period. If the worker chooses the refund mode, he can get an extra bonus of 7500 yuan after 90 days in office. It is reported that in previous years, Foxconn’s highest recruitment price appeared in August, mainly to fully stock up the new iPhone, and employees can generally get a subsidy of 10,000 yuan.

From the perspective of Industrial Fulian, Minsheng Securities released a research report on July 22, saying that it gave Industrial Fulian a recommendation rating. The rating reasons mainly include: 1) Industrial Fulian: the world’s leading high-end intelligent manufacturer and technology service integration solution provider; 2) Cloud computing: the leading ODM server enterprise, the demand for AI servers is growing rapidly; 3) Communication and mobile network equipment: the demand for switches is growing rapidly, and the capital expenditure of operators is rising.

Original title: "Foxconn, sudden! 》

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