Guo Taiming is very "distressed" How long can Foxconn LED lighting OEM road go?

Recently, the word Foxconn has repeatedly appeared in the media newspapers. The keywords of employees suffering from leukemia and iphone 6 revolve around Guo Taiming and his Foxconn. It is difficult to keep a low profile. No, just when the author has not yet finished drafting, Foxconn has an accident!

In Brazil, more than 3,700 employees at the largest factory are on strike, with the aim of increasing wages and improving working conditions. Since September 11, these workers have started to strike, which directly affects the shipment of the new iPhone 6 and iPhone 6 Plus. In addition, on September 14, the British "Daily Mail" reported that since 2010, at least 13 employees of the Foxconn Shenzhen factory aged 20 or so were diagnosed with leukemia, and 5 of them have died.

Guo Taiming is not unaware of the existence of the crisis. Initiatives such as robot strategy, investment in electric vehicles, and acquisition of electronic companies have undoubtedly shown that they are planning for the future. However, Nao Guotai has to take into account the interests of shareholders and the performance of the stock market. It is difficult to get Foxconn out of the king of the foundry in a short period of time.

Today, Foxconn still follows the wave of orders from various high-tech companies, from laptops to Apple phones, from digital cameras to LED lighting. Thus, with such a metaphor, Foxconn is like a diligent chef, relying on low prices and delicious dishes to attract customers to order and continue to stir-fry. The customers have a good appetite, how much he can fry, and how much the customer can eat. Nowadays, Foxconn has to focus on serving Apple and returning to the foundry track.

Foxconn chose to cooperate with Japan and Japan to obtain LED lamp beads at a lower price than the market price. Subsequently, the parent company Hon Hai Group entered the advanced optoelectronics, expanding 50 MOCVD equipment to fill the gap in the company's LED chip manufacturing; In 2009, Foxconn acquired the independent production rights in packaging, liquid crystal display and semiconductor equipment through the acquisition of Chi Mei. In the downstream field, the Group's Pei Xin Semiconductor is responsible for the R&D, manufacturing and terminal sales of LED street light modules. Hongjun Precision, which is also part of Hon Hai Group, has also expanded the LED department to be responsible for the assembly of LED street light heat sinks and LED street lights.

At the same time as the layout of the LED industry chain, Foxconn has also made some gains in the foundry business. In 2009, Foxconn began to OEM for international lighting giants such as Philips and General Electric. According to insiders, only the two OEMs of Philips and General Electric had LED OEM sales of more than 200 million yuan.

However, can Foxconn, who has a lot of troubles, stay in the LED industry or go further? To be tested.

Anyone can understand that this is a problem, but it is a crisis. As we have seen, more and more orders are flying to Southeast Asia. Even Apple’s orders are diverted from Foxconn. From 100% of Foxconn production to 80% by Foxconn, the strategic adjustment of Apple’s decentralized suppliers is undoubted. Let Guo Taiming’s concerns be more clearly confirmed. In addition, with the gradual disappearance of China's demographic dividend and the increase in production costs, OEMs are clearly not a long-term business.

Guo Taiming’s troubles stop this. Foxconn's succession problem is not easy to crack now. After Guo Taiming carefully cultivated the great person, after his brother Guo Taicheng passed away, Guo Taiming also said that he would not let his son and nephew and prostitute take over, so he also tried external management, internal training, and decentralized distribution. The way that many young people take over, as he said, "The group will reach a federal or confederation system to a certain extent."

However, such an arrangement does not seem to completely dispel the worries of successors, as problems such as weak business growth and internal management changes seem to be more and more prominent.

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