07/07 2024 500
Both India and Vietnam claim that they are the second-largest mobile phone exporter in the world, but there are arguments on both sides. However, there is no doubt that India is the second-largest mobile phone producer in the world, and it is the Chinese mobile phone companies that have helped India become the second-largest mobile phone producer in the world. Chinese mobile phone companies have pushed India to become a competitor of Made in China, but India is now biting the hand that feeds it.
As early as 2014, Foxconn announced that it would invest US$1 billion to build a mobile phone assembly plant in India. However, Foxconn has not taken any action in India for several years since then, leading Indian media to say that Foxconn was just blowing hot air and had no genuine intention of developing India's manufacturing industry.
Foxconn actually has its own difficulties. India lacks a mobile phone industry chain, and its infrastructure is too poor, making the cost of setting up a factory in India too high. Later facts also proved this. Foxconn and Wistron have been operating in India for more than two years, and Foxconn only has 35,000 employees, while Wistron has 10,000 employees. In contrast, Foxconn Zhengzhou completed factory construction and employed 300,000 workers in just two years. India's efficiency is indeed too low.
In addition, Foxconn's largest customer, Apple, was booming in China and even ranked first in the Chinese market in 2015. At that time, Apple had no intention of developing in India, and Foxconn had no intention of setting up a factory there either due to lack of customer demand. Therefore, Foxconn's investment in India was seen as a rubber check.
In 2017, a Chinese mobile phone company collaborated with Foxconn to set up a factory in India. In July of the same year, Foxconn produced phones for this Chinese mobile phone brand in India, which can be described as quite efficient. Thus, India's dream of manufacturing mobile phones finally became a reality.
This Chinese mobile phone brand also received丰厚回报, becoming the largest mobile phone brand in India that year. With the success of this Chinese mobile phone brand, many other Chinese mobile phone brands also set up factories in India, driving rapid growth in India's mobile phone manufacturing business, which subsequently led to Foxconn's entry into India's mobile phone manufacturing industry.
In 2019, Foxconn officially opened a factory in India to assemble iPhones, and in 2020, Wistron opened a factory in India to produce iPhones, gradually consolidating India's position as the second-largest mobile phone manufacturer in the world. However, as India became the second-largest mobile phone manufacturer in the world, it began to target Chinese mobile phone companies.
India has imposed huge fines on multiple Chinese mobile phone companies, and even directly confiscated billions of deposits from one Chinese mobile phone company. This behavior is quite ugly, and it has made the global community realize once again that India's reputation as a graveyard for foreign investment is not unfounded. Subsequently, India's actions became even more excessive.
In 2022, the Indian conglomerate Tata forcibly acquired Wistron's factory, and in 2023, Apple only gave Wistron 1% of its iPhone orders, causing Wistron to almost exit the iPhone contract manufacturing market. Currently, the Tata Group is planning to acquire Pegatron's factory in India. These consecutive moves by Indian conglomerates have made Foxconn wary, and it is said that Foxconn has slowed down its expansion in India, fearing that its development in India will ultimately benefit Indian conglomerates.
This year, India has also further targeted Chinese mobile phones. It is said that a Chinese mobile phone company will be forced to hand over 51% of its equity, and this equity will not have any premium. India is pricing this equity almost at the amount invested by this mobile phone company, which is no different from robbery.
The dream of Made in India was initiated with the help of Chinese mobile phones, which ultimately led to Foxconn, Wistron, and other companies setting up factories in India to produce iPhones. However, these companies have contributed to India's manufacturing industry, but India has not been grateful for their contributions. On the contrary, these companies set up factories in India, but India ultimately deprived these companies of their wealth through vicious means. No wonder foreign media believes that India's actions can be described as biting the hand that feeds it.