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Recently, Foxconn has made big moves in Henan again.

According to Henan Daily, on the morning of July 22, the signing ceremony of the "Strategic Cooperation Agreement between the Henan Provincial People's Government and Foxconn Technology Group to Accelerate the Promotion of New Business Projects" was held in Zhengzhou. According to the agreement, the Henan Provincial Government supports Foxconn in building the Foxconn New Business Headquarters in Zhengzhou. Foxconn will give full play to its core competitiveness in the field of intelligent manufacturing, as well as its advantages in global technology reserves and industrial chain resources, to accelerate the implementation of projects such as new energy vehicle complete vehicles, energy storage batteries, digital medical and robot industrial bases, focus on Henan, and build a global high-end manufacturing industry chain and strategic emerging industry ecosystem.

Signing ceremony (Photo source: Henan Daily)

Foxconn's parent company, Hon Hai Technology Group, also recently announced that Foxconn will invest in the construction of a new business headquarters building in Zhengzhou to serve as the new business headquarters. The first phase of the project is located in Zhengdong New District, with a total investment of approximately RMB 1 billion.

Hon Hai said that this strategic cooperation will focus on the implementation of Foxconn's "3+3" strategic industrial transformation, namely the three emerging industries of "electric vehicles, digital health, and robots", and the three new technology fields of "artificial intelligence, semiconductors, and new generation mobile communications" as the development focus. To this end, Foxconn announced an investment of 1 billion yuan in Zhengzhou to build a new business headquarters building to carry the functions of the new business headquarters.

In fact, Foxconn has been operating in Henan for many years.

Since the establishment of the Foxconn factory in Zhengzhou in 2010, Henan has always been an important production base for Foxconn in the mainland. The Zhengzhou Airport Economic Comprehensive Experimental Zone, with the Foxconn Zhengzhou factory as its core, has now become an important global production base for Apple mobile phones, and has formed an electronic information industry cluster based on this. Foxconn's layout for the development of emerging industries in Henan was launched last year. In April 2023, at the unveiling ceremony of Foxconn's new business headquarters in Zhengzhou, Liu Yangwei, chairman and general manager of Foxconn Technology Group, stated that he would "focus on strategic industries and create a new Foxconn in Henan Province."

According to China Business News, there have been rumors that Foxconn is going to "run away". In recent years, China's low-end manufacturing industry has gradually shifted to Vietnam and India, and after Apple started the strategic adjustment of decentralized supply chain layout, Foxconn, as Apple's largest foundry, has gradually shifted part of its industrial chain to India and Vietnam, which has also aroused the attention of the outside world that Foxconn is going to "run away". Now, Foxconn has landed its new business headquarters building in Zhengzhou, and has laid out a new energy vehicle trial production center and solid-state battery projects. These moves undoubtedly show the importance Foxconn attaches to investment in mainland China. So the outside world said that Foxconn is "back again."

However, the outside world is not surprised by Foxconn's change of attitude. China Business News quoted media reports that the iPhone 15 produced in India had many quality problems, resulting in a pass rate of only 34%. After part of the supply chain shifted to India, India's performance did not meet the expectations of Apple customers, but instead lagged behind.

In addition to practical considerations, Foxconn's layout in Zhengzhou is also based on future considerations. As early as April last year, Foxconn's new business headquarters was unveiled in Zhengzhou. In June of the same year, Foxconn's new business headquarters began recruiting in Zhengzhou for the two major business segments of EV (electric vehicles) and batteries.

China Business News stated that Foxconn does not seem to have the idea of ​​creating a new car brand, but instead wants to take the route of OEM production of new energy vehicles for car companies, selling Foxconn's MIH pure electric platform to all car manufacturers, as well as a complete set of standard solutions from design and development to production OEM.

According to the Shanghai Securities News, after sorting out public information, it was found that since 2018, Foxconn has also made large investments in Zhuhai, Guangdong, Jinan, Shandong, Nanjing, Jiangsu and other places. These investments cover the semiconductor industry chain from wafer fabs, semiconductor equipment to packaging and testing.

"Foxconn's series of increased investment actions reflect its emphasis on future technological development. Through these investments, Foxconn aims to strengthen its position in the global industrial chain while promoting local economic growth and technological progress." Someone in the electronic information industry chain said that from an industrial perspective, it is inevitable for Foxconn to shift its investment focus from mobile phones to new energy vehicles.

Jimu News noted that according to a report by China News Service on August 5, since 2022, with the strong support of the government and the active cooperation of the owners, Zhengzhou Foxconn has invested more than 580 million yuan to comprehensively upgrade the dormitory rooms and public areas in the building. At the end of June this year, the three-year renovation was successfully completed. Batches of employees moved in recently, and the original 8-person room has been turned into a 6-person room.

From this point of view, the two-way cooperation between Foxconn and Henan is worth looking forward to.

Jimu News compiled Henan Daily, China Business News, Shanghai Securities News, China News Service

(Source: Jimu News)

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