Give Modi a hard slap and Foxconn decides not to play in India

Do you still remember the photo from 4 months ago?

Four hands interlocked, tightly held together. Modi with a white beard laughed happily, and Liu Yangwei beside him had a bright face.

Subsequently, Hon Hai Group, which was chaired by Liu Yangwei, tweeted:

Chairman Liu Yangwei is currently visiting India, and today we had a warm meeting with the respected Prime Minister Modi to introduce to him the good progress we have made in the country. Foxconn will continue to establish an ecosystem in India that allows all our stakeholders to share, collaborate, and prosper.

Modi immediately forwarded the tweet and said, "Mr. Liu and I had a great meeting, and our discussion covered various topics on strengthening India's technology and innovation ecosystem.".

But four months later, the original smiling face turned into a bitter expression.

Foxconn officially announced on July 11th that it will withdraw from its joint venture chip program in India. The joint venture with India's Vedanta Group, with a final scale of 19.5 billion US dollars, was originally one of Foxconn's largest overseas projects.

For such a big project, if you say you're going to do it, then you're not going to do it. Without a doubt, this is a slap in the face for Modi. According to Reuters comments, one of the sentences is: Modi's Indian chip manufacturing plan is facing serious setbacks.

It's very simple.

1. This may be the joint venture project that Modi values the most. Last year, when the joint venture factory started construction, Modi couldn't help but praise it, which was an "important step" in driving India's chip manufacturing ambitions.

2. The factory was built in Modi's hometown of Gujarat, which naturally became an important achievement promoted by the Modi government. Modi started his career in Gujarat, studying China and attracting various investments. He transformed Gujarat into an Indian version of Guangdong, and Foxconn came to participate in the grand event. How interesting it is.

So, when Liu Yangwei visited India in March this year, Modi must take time out of his busy schedule to personally receive him and give him a warm handshake.

But now, Foxconn has suddenly stopped working.

Why?

Foxconn also has indescribable hardships.

According to the information disclosed by external sources, ultimately it is still a matter of money.

Foxconn's factories are built, but such factories generally require huge government subsidies. Foxconn's visit to India also saw a $10 billion semiconductor subsidy plan in India.

But Foxconn's 28 nanometer chip factory is said to not meet India's standards and naturally cannot receive billions of dollars in subsidies. Do you think the Indian government is foolish?!

But who will do the losing business? Foxconn, after all, is a company that values revenue the most. Watching things drag on is a bottomless pit. Foxconn had to break their ties, I won't do it anymore.

Although I must have lost a lot of money, my decisive stop loss now should still be considered a great fortune in misfortune.

But for Modi, this is indeed a significant blow.

Face goes without saying, Modi loves face very much, and more importantly, the inside. According to India's original plan, it is expected to become the world's largest semiconductor manufacturing base within the next 4 to 5 years.

The ambitious plan is sure to turn yellow now.

More importantly, the demonstration effect. Even companies like Foxconn, international giants introduced by Modi himself, ultimately perished in their hometowns. Do other companies dare to go to India?

Don't forget, the situation of Chinese Xiaomi company in India is not fake, but it seems to be punished more. Don't forget, the investment of Japan's high-speed rail in India, the delay in completion of the project, and the loss of money is certain, and the Japanese also have difficulties that cannot be expressed.

I said at that time, fortunately, it was Japan's high-speed railway that won the India project, not China's high-speed railway. So let the Japanese see the efficiency and treatment of India.

Of course, Foxconn is still Foxconn, so there is still room for improvement. It's just that the joint venture with Vedanta Group is not going to be pursued. One difference, two differences, and everyone is happy. It's also possible to look for other Indian partners.

There are two reasons that cannot be ruled out.

The first one is that Foxconn still has a lot of investment in India, such as wanting to produce Apple phones in India. If the chip project goes bankrupt and other projects need to be preserved, they naturally dare not offend India.

The second one is that Foxconn is not giving up yet. After all, India claims to provide $10 billion in chip subsidies, but Vedanta cannot. I will try to find an Indian company to jointly invest and manage it well. It's uncertain if it will be successful.

Finally, what do you think?

Let's stick to the rough three points.

India indeed has a set.

A set of rhetoric, extravagant and extravagant. So, out of various considerations, some multinational companies happily went to India. Finally, there must be those who make money, but there must also be those who make money but lose more, as well as those who are shut down and suffer indescribably. Let's have a diverse India and a diverse life.

2. You always have to pay back when you come out to mess around.

Without diamond, don't take on porcelain work. If you want to receive subsidies from the Indian government, first weigh your own weight. Do you really think India is a replica of China? Of course, for India, the business environment is very important. With the reputation of being a "graveyard for foreign companies" spreading, who dares to go to India?

3. We need to be confident and clear headed.

We must be confident that China's development to this day has various advantages, especially in the industrial chain, that Vietnam and India cannot compare. This is also the reason why foreign investment continues to increase its presence in China. But we need to be more clear headed, after all, countries like India are also closely catching up and have more cost advantages. International competition, if you don't advance, you will retreat. We have no choice but to improve upwards.

Finally, bless India and also wish Foxconn.