after 2010, as Foxconn’s mobile phone assembly industry was launched in many provinces and cities in Chinese Mainland, and apple placed the assembly orders of mobile phones, iPads and even computers to Foxconn, China’s local electronics industry has ushered in a wave of rapid growth. From mobile phone packaging boxes to speakers, mobile phone display screens, chips and even today’s memory, China has gradually formed its own localization advantages, It has established the most perfect industrial chain in the world.
Apple mobile phone not only benefits from China’s local supply chain, but also has cultivated international mobile phone brand giants such as Huawei, Xiaomi, oppo, vivo and voice, which has realized the real Chinese domestic brand to the international market and swept away the stain of domestic Shanzhai phones’ Sprint into the market in the past years.
however, what is surprising is that since Trump came to power in 2017, great changes have taken place in China US relations. Especially for China’s high-tech enterprises, the United States has implemented extremely strict encirclement and interception measures. Among them, Huawei has suffered the most. As a result, Huawei’s 5g orders have been suspended, 5g mobile phone production has not recovered, and Huawei’s chip industry has suffered a heavy blow.
on the other hand, the US side offers various inducements to the supply chain of the electronics industry, hoping that enterprises can move out of China and even set up factories in the United States. Among them, apple and Foxconn are the biggest targets.
as early as 2017, Hon Hai under Gou announced that it would invest US $10billion, or about RMB 67billion, to build a high-tech factory in Wisconsin, the United States, specializing in the production of 10.5 generation LCD screens, and to create 13000 local jobs. Naturally, Wisconsin has also been happy, and even offered us $3billion in tax subsidies.
at that time, Hon Hai had completed the acquisition of sharp. Sharp was the pioneer of LCD and possessed relatively advanced igzo panel technology. At that time, it was relatively advanced. Once it set up a factory in the United States, it also promoted the apple assembly industry to return to the United States, which would bring pressure to the LCD panel industry in China and South Korea.
as a result, 3000 acres of land were set aside in Wisconsin, and hundreds of millions of dollars were invested to improve the infrastructure such as water pipes and sewers for the industrial park. However, Hon Hai was required to pay US $36million a year for 20 years.
after the signing of the agreement, trump was elated and praised Hon Hai’s Wisconsin plant as”the eighth wonder of the world”.
however, five years later, the factory is still empty and overgrown with weeds. There are only two buildings, without any sign of large-scale construction. In addition, local workers have not been hired according to the contract, and the investment of 10billion US dollars has not been in place.
the reason is that the global TV industry and even mobile phone display are leaning towards OLED, mini led and mocro led. Large display manufacturers in China and South Korea have invested huge amounts of money in these three tracks and have launched corresponding products, including Samsung, LG, BOE, csot, vicino and other enterprises. In contrast, sharp and JDI in Japan, It has disappeared from Apple’s supplier list, and even sharp has no OLED production line so far.
especially in the past two years, China’s BOE has continued to break into Apple’s supply chain to provide display screens for Apple mobile phones and iPads. The quality has been comparable to that of Samsung and LG, and the price also has advantages. If sharp invests in a display screen factory in the United States, the cost is high and the technology is backward, it will not be a good deal. It is no wonder that Gou has given up his investment in Wisconsin.
on the contrary, in 2018, Gou established super vision Co., Ltd. in Guangzhou, China, through sharp Japan, which he owned, to produce 10.5 generation LCD screens, and announced to provide 8K display screens. In the past two years, the company’s official website has not been updated. There is almost no news about the company in the public materials, and the number of employees employed is only more than 1000, which also shows sharp’s backward technology, It has been difficult to survive the attack of BOE and csot.
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