The ongoing trade tensions between the US and China, coupled with disruptions caused by the COVID-19 pandemic, have triggered a global shift in manufacturing. Companies are diversifying their production away from China, leading to a surge in investment in Southeast Asia and Mexico. However, this trend has also driven up costs and labor shortages in these regions.
Amidst this shifting landscape, Foxconn, with its vast global manufacturing network, is strategically positioned to capitalise on these changes, reports DigiTimes. The company is continuing to invest in key regions like Vietnam, India, and Mexico, while maintaining a strong presence in China.
Foxconn’s Chairman, Young Liu, highlighted this strategy: “Driven by market realities and customer demands, manufacturers that once relied heavily on China as their primary production hub are rapidly diversifying their global manufacturing capacities.”
This diversification is crucial as countries increasingly push for localized production, particularly in the electric vehicle (EV) industry. Foxconn’s emphasis on EVs as part of its 3+3 strategy necessitates proactive planning for future market and customer demands.
The company’s extensive global footprint, with 240 production bases and ongoing investments, offers unparalleled flexibility to adapt to production demands and comply with potential localized production requirements. As Liu aptly states, this gives Foxconn “a competitive advantage that is challenging for other companies to replicate.”
In conclusion, Foxconn is not just navigating the chip war, but actively leveraging it to expand its global reach and strengthen its position as a leading manufacturer in the evolving landscape of the tech industry.
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