Text/BU Review/Ziyang Correction/Zhiqiu
As the world's largest chip foundry, Foxconn has delivered a very impressive report card in 2021.
1.37 trillion was recorded in
According to the 2021 financial report released by Hon Hai Group on January 5, the company achieved revenue of NT$5.94 trillion (approximately RMB 1.37 trillion), setting a new historical best result.
The achievement of Hon Hai’s good achievements is naturally inseparable from the support behind the company’s largest customer, Apple. It can be said that without Apple, there would not be the Foxconn that has made a lot of money now.
. In order to retain this big customer, Hon Hai can be said to be "following the rules" of Apple. Apple wanted to transfer its production capacity to India, so Foxconn built a factory in India. If you want to transfer it to Vietnam, Apple built a factory in Vietnam.
Recently, in order to meet the strong demand for Apple's iPhone 13, Foxconn has offered high-paying jobs.
It is not difficult to see from this that Foxconn and Apple are closely connected. However, Hon Hai also has its own "little abacus".
Guo Taiming's "new abacus"
's high dependence on Apple and the decline in OEM business share have made Foxconn worry about the future development of Hon Hai.
Faced with various challenges, Foxconn is beginning to transform and begin to seek a direction for diversified development. To this end, Foxconn has invested heavily in many fields such as electric vehicles, industrial robots, and digital medical care.
Among them, Foxconn attaches great importance to the electronic automobile business and has achieved good results.
After working in the electronic car track for several years, Foxconn announced its own achievements in October 2021 - the three electric cars, Model C, Model E and Model T, and the three models have different positionings.
According to Foxconn's estimate, the company will achieve revenue of more than NT$10 billion in electric vehicle-related business for the first time this year. However, Foxconn is naturally not satisfied with this, and it has greater ambitions.
In the next five years, Foxconn hopes that the company's electric vehicle-related business revenue can grow to US$35 billion and seize 10% of the electric vehicle market. By then, the electric vehicle business will become a new growth point for Foxconn.
Foxconn is ambitious and
The automotive supply chain is complex, and Foxconn is inexperienced in this field after all. Therefore, in order to build cars, Foxconn has spent a lot of effort and has taken a series of measures such as extensive investment, mergers and acquisitions, and establishment of joint ventures.
Today, Foxconn has formed a full electric vehicle industry chain. It can not only build complete vehicles, but also control the key components and technologies of electric vehicles in its own hands. More importantly, Foxconn is unwilling to just do OEM this time, but wants to build its own brand.
The reason why Foxconn is so concerned about car manufacturing is naturally because the market size of new energy vehicles is large enough and the future potential is attractive. Moreover, the added value of electric vehicles is high enough and the profit is large enough.
Today's new energy vehicle track is very similar to the smartphone market at the beginning of the last decade. In this vast market, Foxconn is expected to achieve considerable revenue.
Moreover, the emergence of new energy vehicles will undoubtedly bring an opportunity for a reshuffle for the manufacturing industry. If Foxconn can seize this opportunity, the company's technical strength will usher in a comprehensive improvement and further achieve transformation and upgrading.
And now Apple also has the intention to do the automotive business. While creating its own car brand, Foxconn is also expected to continue its cooperation with Apple in the automotive field. In this way, Foxconn can not only make a big profit, but also achieve improvement in technical level through cooperation.
From this point of view, the new energy vehicle business has many important significance to Foxconn.
written at the end
Although Hon Hai Group's performance is impressive, there are also many hidden dangers in its development.
For this reason, Hon Hai Group has begun to actively transform and continues to increase investment in many high-tech fields such as semiconductor components, new energy vehicles, and industrial robots.
Let us wait and see what achievements Hon Hai Group will achieve in the future in this transformation.
