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Hong Kong media: Due to problems with worker quality and infrastructure, Foxconn "returns" to mainland China from India and Vietnam

2024-08-05

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Reference News reported on August 5 According to a report in the August 5 issue of Hong Kong's Asia Weekly, in recent years, as low-end manufacturing has shifted to developing countries in Southeast Asia and South Asia, Foxconn, as aappleMobile phone production chain giants also transferred part of their industrial chains to India, Vietnam and other places after the epidemic, but there has been a reversal recently. In late July, Foxconn announced that it would invest 1 billion yuan in Zhengzhou, Henan, to build a new business headquarters building to expand the supply chain and attract more orders. Foxconn has also entered the peak recruitment season in mainland China. There are also reports that the iPhone 16 series will still be assembled in the mainland. According to relevant information, Foxconn is of great significance to the Henan economy. Last year, the import and export volume of the Xinzheng Comprehensive Bonded Zone where Foxconn's Zhengzhou factory is located reached nearly 407.3 billion yuan, accounting for half of the total import and export value of Henan Province.

According to the report, Foxconn's "return" is by no means accidental. The root cause of India and Vietnam's "falling out of favor" lies in the quality of workers, industrial chain and infrastructure construction. Because Indian workers are not as well educated as Chinese workers, the yield rate of iPhone 15 assembled in Indian factories is only half. The incomplete supply chain in Vietnam and India is another major reason. Although the labor costs in the two countries are lower than in China, many parts needed by factories in Vietnam and India still have to be imported from China, and the factories have to pay expensive transportation costs, which increases the total cost. The lack of infrastructure has also become the "last straw that broke the camel's back". The power supply in India and Vietnam is backward, and they face the dilemma of power rationing during the peak period of power production in factories. The phenomenon of stealing electricity among the Indian people is also widespread, further increasing production costs.