Guo Taiming Once relied on the electronics OEM industry, it has become the richest man in Taiwan for many years. After Apple gave his business to him, he formed a series of production lines in the mainland. Later, he could earn trillions of NTD every year with Apple's orders alone. From the data, this year's Foxconn 's net profit in the first quarter reached more than NT$20 billion, of which Apple's contribution value definitely tops the list.
In addition to taking over Apple, the big party, Terry Gou also relies on the welfare policies and demographic dividends given by the mainland. But with the development of the economy, Terry Gou began to feel that Southeast Asia's migrant workers were cheaper, so he fired nearly 320,000 mainland employees. At the same time, he spent 67 billion yuan to invest overseas and ended up with a crushing defeat. Now he wants to come back?
1. Make money by relying on the mainland
Guo Taiming was born in 1950. His family has not been in good condition since childhood. After finishing his junior college, he came out to work as a salesperson. Perhaps because he was born with the spirit of trying to make a fortune, he quit his stable job and wanted to start a business. He borrowed 200,000 yuan to create a plastic factory. At first, it developed well, but later he encountered various bottlenecks and the company could not continue to open.
Terry Gou, who suffered from entrepreneurial setbacks, has a very difficult personal life, but he has a good father-in-law, a famous Hong Kong rich man, Lin Baixin . Seeing that this poor boy was almost starving his daughter to death, he had to lend 700,000 yuan to revive his country. With this money, Terry Gou really opened up the situation and made a lot of money after investing in black and white TV.
1985, Terry Gou founded Foxconn and began to formally undertake OEM business. Although there are many orders from all over the world, labor costs in Taiwan are gradually increasing, compressing the company's original profits. In order to change this situation, Terry Gou turned his attention to the mainland market. At that time, the mainland had a policy of benefiting Taiwan, and Taiwanese capital was encouraged to come in to invest in and build factories and give corresponding discounts.
The mainland's population dividend has made Foxconn's territory expand. At the same time, the country has also given preferential policies of 5 years of tax exemption and 10 and a half years of tax, and has directly allocated 1.5 billion US dollars to build a factory. In order to encourage Taiwanese compatriots to come in and invest, they will give land and discounts. Since then, Foxconn also seemed to have taken the express train and soared all the way, and Terry Gou has also become the richest man in Taiwan Province.
2. Dismiss 320,000 employees
Without the mainland's demographic dividend and preferential policies, it will be difficult for Foxconn to get such a large order in a short period of time and complete the accumulation of wealth. But not only did Guo Taiming not think this was a benefit given to him by the mainland, but instead believed that this was the mainland's pleasing him. also boldly claimed that the mainland needed him, emphasizing that Foxconn used to create jobs for mainlanders.
As the domestic economy develops better and better, labor costs begin to rise, and Foxconn's original "pressure" model gradually begins to fail. In order to continue to maintain low labor costs and high revenue and profit, Guo Taiming decided to shift the focus of the factory to Southeast Asia where labor costs are cheaper. In addition, in order to please the United States, he also wanted to spend tens of billions to build factories overseas, and for this reason he fired 320,000 Chinese employees.
3. Want to come back if you fail to invest?
After seeing the Sino-US trade issues, Terry Gou decisively chose the United States. He believes that once conflicts arise in the future, he will definitely have meat to eat with the United States, and then relocate the factory to India and the United States in large quantities. Unfortunately, Terry Gou's wishful thinking failed. Both Southeast Asia and the United States have caused him a big loss.
At the beginning, Terry Gou felt that India's labor was cheap, and slowly transferred Foxconn's future business, and he would definitely get the next demographic dividend. But after the outbreak, India's anti-epidemic policy failed, resulting in a complete suspension of work in factories, and Terry Gou's Foxconn is no exception. I originally thought that Indian factories would bring more profits, and they fired a lot of Chinese employees. This made Terry Gou very embarrassed. Indian factories are consuming money and will not be able to operate in a short time when they return to China.
In addition, in order to retain Apple, he promised that the United States would build a large number of factories locally and provide tens of thousands of jobs. , Terry Gou spent nearly 67 billion yuan on this investment, but the factory area in the United States is still in a barren state. Because of his wrong project selection, forcing factory construction and development are also facing the end of being eliminated by the market. Instead of doing it with a tough bullet, it is better to stop the loss in time. This overseas investment, Terry Gou lost tens of billions.
After the overseas investment failed, Terry Gou rediscovered the benefits of the mainland. There is a very mature and systematic Apple OEM assembly line here, as well as experienced employees. Most importantly, the Chinese people are very hardworking and much more reliable than some cheaper workers in Southeast Asia. The domestic epidemic is now well controlled, and there will be no risk of factories shutting down at any time. However, the market has been slashed by companies such as BYD , Luxshare Precision , etc., and Terry Gou will not get much benefit even if he comes back.
Summary:
No matter what business it is, the boss's character is still the first priority. Guo Taiming is like a fence-in-law. He gave up when he said he would give up and turned around and turned to the embrace of the United States.
Facts have proved that his investments in Southeast Asia and the United States have failed, with losses of at least tens of billions. has finally discovered the advantages of building factories in the mainland, but neither Chinese nor domestic enterprises will give him this opportunity again.
Disclaimer: This article is not for commercial purposes and has no intention to infringe upon the rights of anyone. The pictures are from the Internet.
If there is any information error or infringement, please send a private message to the author to correct and delete it.
