"I have a career, which cannot be separated from the government's policies and the help of all sectors of society. I owe too much to society." This is a classic quote by Cao Dewang, founder of China Fuyao Glass Group.
As the world's second largest automotive glass supplier, Cao Dewang's ability to achieve such brilliant achievements is inseparable from his hard work and efforts, and even more so from the extensive support of the government and the people.
After becoming successful, Cao Dewang did not forget the country and people who helped him.
Since 1983, Cao Dewang has donated a total of 11 billion yuan to the society, and he is a truly patriotic entrepreneur.
Cao Dewang
Like Cao Dewang, Taiwan's founder Terming Gou is also an entrepreneur with a net worth over 100 million yuan.
In the early days of entrepreneurship, thanks to China's vast labor market, Terry Gou successfully built Foxconn as the world's largest OEM manufacturer.
But what everyone did not expect was that after Foxconn's rise, Terry Gou chose to "smash the pot" to invest overseas in order to curry favor with the United States' Apple .
In order to seek cheaper labor, Terry Gou began to "turn to Southeast Asia". But most of his investments ended in failure, and Foxconn also paid a heavy price for this. So what's going on?
Terry Gou
"The Son-in-law of the Wealthy Family" Terry Gou's entrepreneurial path
1950, Terry Gou was born in Taipei County, Taiwan Province, China. His father, Guo Aiwu, graduated from the Kuomintang Central Police School. On the eve of the victory of the Liberation War, Guo Taiming moved his family to Taiwan.
As the eldest son in the family, Terry Gou was focused on training from his father since he was a child. At the age of sixteen, Terry Gou successfully entered Taiwan Maritime College. In order to reduce the burden on the family, Terry Gou chose to make money while studying. After graduating from
, Terry Gou became a salesperson in Revival Airlines and had a decent job.
But Terry Gou, who is ambitious, is not satisfied with this. He wants to own a company of his own. Not long after, Terry Gou quit his job and started his own entrepreneurial journey.
Terry Gou
In 1973, Terry Gou founded a plastic factory with the support of his friends. But starting a business is by no means as simple as imagined. Not long after, Terry Gou, who lacks management experience, encountered big trouble.
The company is on the verge of bankruptcy due to poor management, and he lost all the 300,000 yuan principal. Friends all suggested that he sell the factory as soon as possible to recover the losses, but the stubborn Terry Gou chose to stick to the end.
During this period, Terry Gou met a woman who was enough to change his life - Lin Shuru .
When we first met, Lin Shuru was attracted by the ambitious Terry Gou. The man's strength and persistence deeply touched Lin Shuru's heart. Terry Gou, who had not achieved his career, is about to usher in a beautiful love.
It is worth mentioning that Lin Shuru's father Lin Baixin is a famous business tycoon in Hong Kong. Not only does he have assets of hundreds of millions, but his industries are also numerous.
Terry Gou and his wife
As daughters of wealthy families, Lin Shuru did not care about Terry Gou's ordinary birth. Not long after they fell in love, they both entered the palace of marriage.
In order to save her husband's plastic company, Lin Shuru asked her father to help her. Lin Baixin, who was eager to love her daughter, invested NT$700,000 for Guo Taiming's company without thinking too much.
With the help of his father-in-law, Terry Gou's factory gradually got rid of the crisis of bankruptcy, and the company began to make profits. In order to expand the scale of business, Terry Gou has set his sights on the mold market again. With the principal, he no longer hesitated and directly spent huge amounts of money to import the latest production equipment from abroad.
At that time, the sales of of Taiwan black and white TV was very impressive. Guo Taiming, who had a unique vision, decided to vigorously produce the components and platform selection buttons of the TV. In addition, Terry Gou has also established electroplating plants and stamping plants in various places in Taipei, gradually forming a complete production line.
Terry Gou
Not long after, large parts orders came one after another, and Terry Gou's company's revenue began to rise year by year, and he became an entrepreneur with an annual income of one million. In 1982, the computer field began to develop rapidly and the IT era was about to come. The visionary Terry Gou decided to invest in computer hardware production.
In order to gain a competitive advantage, Terry Gou directly spent 16 million yuan to purchase a complete set of computer cable assembly equipment from abroad, and the company was officially renamed Hon Hai Precision Industrial Co., Ltd.
With the increasing rise of the computer industry, Terry Gou's manufacturing company quickly attracted widespread attention from major multinational companies.
At that time, the reform and opening up of New China was still in its infancy. Compared with the mainland, computer sales in North America were very considerable. In order to seek overseas markets, in 1985, Terry Gou established his first branch in the United States and established Foxconn Production Group.
Foxconn
As one of the few Chinese companies in North America, the emergence of Foxconn quickly attracted the close attention of Apple. At that time, the marketing scope of Apple was mainly North America and Europe.
But with the rapid rise of the computer industry, Apple knows that if it wants to sell its electronic products to all parts of the world, it must not give up the Asian economic market. In order to save costs and increase production and invest more production funds in software design, Apple decided to let Foxconn take over some of its own hardware production work.
After Foxconn was founded, Terry Gou has been looking for strong partners.
Hard work pays off. Under Terry Gou's strong promotion, Foxconn's company scale and production equipment quickly won the favor of Apple, and the cooperation between the two parties was reached.
Apple
In order to please the United States, Foxconn chose to leave overseas
0Gou's Foxconn was able to achieve great success because of its strong human resources and broad market background in mainland China.
After reaching a contract with Apple, Foxconn became an agent manufacturer under Apple, mainly responsible for the production and assembly of computer parts.
In order to ensure that the core technology is not leaked, Apple and Foxconn have no connection in software development, product design, etc. In addition, Apple will monitor Foxconn throughout the process of computer assembly and parts production.
As a world-renowned technology company, Apple has strict requirements on their products. If Foxconn wants to take orders from Apple, it must have a very good production level.
Foxconn
1988, the reform and opening up of mainland China has been quite effective. With the introduction of the policy of "Regulations on Encouraging Investment in Taiwan Compatriots", many entrepreneurs in Taiwan have begun to choose to return to their hometowns to invest and start businesses to start factories, and Terry Gou is no exception.
The cheap labor and strong market resources in the mainland are perfect for Foxconn. After returning from Shenzhen, Terry Gou decided to invest in a factory in the mainland.
At that time, China's coastal areas were in the "window period" of reform and opening up. In order to attract foreign investment, local governments successively formulated many preferential policies.
, who saw the "bidden" of mainland China, immediately moved Foxconn's production line to Shenzhen, China. In Longgang , Terry Gou bought a large wasteland without spending much money, and then started the machine to create Foxconn Shenzhen Longhua Industrial Park here. After the production equipment of Terry Gou
After the production equipment was in place one after another, Terry Gou began to recruit employees from outside. The rich and cheap labor resources in the coastal areas instantly filled every production line of Foxconn.
At the same time, Apple also signed a large cooperation order with Terry Gou.
With its unique factory conditions, Foxconn's production scale is getting bigger and bigger, and the company's profit revenue has also risen sharply.
After tasting the sweetness, Terry Gou immediately decided to continue to "expand territory and expand Foxconn's production line."Not long after, Terry Gou successively created the Pearl River Delta Industrial Park and the Yangtze River Delta Industrial Park, and Foxconn's production plants began to spread throughout the coastal areas.
With the continuous improvement of production efficiency, Foxconn's OEM quality has been highly recognized by many companies. Intel , Litai , Dell and other world-renowned high-tech companies have all come to Foxconn.
Guo Taiming
Faced with such a large-scale production demand, Guo Taiming "accepts everything" as required. The cheap land resources and labor in mainland China have become Foxconn's most powerful production guarantee.
In order to "digest" such a huge part order, Foxconn opened its own production factory to the inland China.
The low investment cost once again made Terry Gou make a fortune, and Foxconn became the world's largest OEM manufacturer.
At this time, Terry Gou was a real winner in life. Foxconn's OEM factories are spread all over Asia, with annual turnover exceeding 100 billion US dollars.
In 2011, Foxconn ranked 60th in the top 500 companies in the world, becoming the world's most influential OEM company .
Guo Taiming
However, with the continuous development of the mainland economy, China's market competition is becoming increasingly fierce. Except for a few inland areas, land resources around the coast are becoming tight, and there is no cheap labor here for Foxconn to "drive".
Against the backdrop of the rise of many state-owned enterprises, Foxconn's production plants have exposed many significant problems. The phenomenon of environmental pollution, land encroachment, and unequal labor-management agreements occur frequently. Terry Gou, who couldn't get the "bonus", began to get anxious.
Logically speaking, corporate competition is common, and problems arise in factories can be solved. But Terry Gou, who is used to taking advantage of the "benefits", doesn't think so. In order to save costs and expand production scale, Terry Gou focused his investment in Southeast Asia.
After the Sino-US trade frictions, the US government began to boycott the development of China's Huawei .
In order to hold on to the "thighs of the number one American company Apple," Terry Gou decided to invest in Southeast Asia and "moved" the Foxconn factory abroad.
Foxconn
leaves the Chinese market, and Foxconn's trip to Southeast Asia is "woeful"
In order to complete project orders for commercial giants such as Apple and Intel, Foxconn has opened a total of 44 foundries in mainland China, with employees of more than 800,000.
Production conditions of this scale can create hundreds of millions of dollars of economic wealth for Foxconn every year.
After years of hard work, Foxconn has occupied a considerable market share in China. In order to carry out so-called "scientific management", Terry Gou is constantly compressing Foxconn's investment costs in China. Despite this, Foxconn's Chinese factory created considerable economic profits for him.
As the social level continues to improve, Foxconn's internal low salary and benefits have aroused strong dissatisfaction among many employees. Compared with late-stage OEM companies such as Luxshare and BYD and , Foxconn's employee benefits are indeed slightly inferior. In order to reduce costs and continue to expand production scale, Terry Gou went to India to find Foxconn's "future".
Foxconn
Like China, India is also a country with a large population, and its cheap labor and land resources have attracted the investment attention of countless foreign companies. For Terry Gou, India is the former China. Foxconn invests in and sets up a factory here and will definitely be as successful as before.
Terry Gou does not regret his decision. Faced with the "question from reporters and the media," Terry Gou proudly said: "The mainland cannot live without Foxconn. I am giving food to the mainland." After returning to China, Terry Gou, who thought he had mastered the "wealth code", immediately decided to invest in a factory in India.
In order to expand Foxconn's production scale, Terry Gou spent 20 billion to build a semiconductor project factory in India. In order to maintain its cooperative relationship with Apple, Terry Gou spent a lot of money to establish an iPhone production line in India.
Terry Gou
But not long after, Foxconn's production factory in India began to have loopholes, and Terry Gou's commercial investment also suffered serious losses. Although Indian laborers are cheap, their lazy working attitude cannot adapt to Foxconn's hard-working assembly line production at all.
Due to lack of work experience, Foxconn's production efficiency has been greatly reduced.
In addition, the energy supply in various parts of India is not perfect, and the infrastructure is relatively backward. Water and power outages often occur, which leads to many Foxconn factories being forced to shut down after a few days of construction.
Compared with China, the production efficiency of Indian factories is far from meeting the order needs of technology companies such as Apple and Intel. Seeing that investment in India has not been effective for a long time, Terry Gou, who was "in a hurry to seek medical treatment", turned his attention to Vietnam again.
Indian factory
However, after the outbreak of the new crown epidemic, global economy suffered a severe blow, and many factories were forced to shut down work and unemployed, and Terry Gou's Foxconn was no exception. In order to develop the labor market in Southeast Asia, Terry Gou invested tens of billions of dollars, but all of them had little effect and ended up in a dismal end.
At the same time, Apple, which pays attention to quality, has established a good cooperative relationship with Luxxx Precision , and Foxconn is no longer Apple's dedicated OEM factory. Since its establishment, Foxconn has only undertaken the production of parts for mobile phones and computers, and has not created its own professional brand. In the increasingly fierce market competition, it will be difficult for enterprise groups without patents and property rights to survive.
Foxconn is just a "worker" under major technology companies. With the continuous rise of new OEM industries such as BYD and Luxshare, the era of Foxconn will eventually come to an end.
Foxconn
Conclusion
As well-known entrepreneurs, the success of Terry Gou and Foxconn is inseparable from the cheap labor resources and strong economic market in the mainland. In order to pursue profits, Terry Gou abandoned Foxconn's foundation, which led to his ultimate defeat.
No matter how great a person achieves, he should not forget the motherland and people behind him. Businessmen do not only have interests in their eyes, but the country is our strongest support.
Reference
Shenzhen's strong industrial enterprises are closed again Huawei BYD Foxconn is calm - Wang Zhen Li Suwan - Economic and Management Science
Entrepreneur Summit How Guo Taiming speaks attract attention - Zhang Ruo - Economic and Management Science
Guo Taiming runs for election may give Taiwan a new future - Dai Suyue - Basic Education
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