| General > General Technical Chat |
| Foxconn: China's days as worlds factory are done |
| << < (4/11) > >> |
| coppice:
--- Quote from: EEVblog on August 22, 2020, 12:29:09 pm --- --- Quote from: coppice on August 19, 2020, 04:38:02 pm --- --- Quote from: Bud on August 17, 2020, 10:28:34 pm --- --- Quote ---Foxconn chairman Young Liu, according to Bloomberg,... boldly proclaimed that while China will continue to be a key location for Foxconn's factories, the country's "days as the world's factory are done." --- End quote --- https://www.macrumors.com/2020/08/12/foxconn-says-chinas-days-as-worlds-factory-done/ --- End quote --- This is hardly news. Low value assembly work has been moving out of China for years. --- End quote --- Yes, and companies have also been moving manufacturing back to their own countries for years now. It even has it's own name, "onshoring". We've been talking about it for several years at least on The Amp Hour. --- End quote --- Do you know of some solid major cases of work returning to the home country? There is lots of potential for it. Few jobs will return, but the work could return to ever more automated factories in the home country. However, most of what I hear is just talk. The bulk of actual movement out of China is to cheaper places in Asia. |
| SilverSolder:
--- Quote from: blueskull on August 22, 2020, 01:39:11 pm --- --- Quote from: pidcon on August 22, 2020, 01:31:03 pm ---If these companies are leaving, where is the next frontier for economic growth? --- End quote --- Vietnam, but that only applies to people already bloody rich, rich enough to "buy" local government and setup factories to do whatever the f* they'd like to do, and even you have 8 digit figures, you are too late to the party. Entrance barrier did and will get higher and higher. It was easier for one to build a fortune back when NYC was rising, then the bar got higher in Beijing, then even higher in Shenzhen. Not only rich frontiers shift, paradigms do the same. Copying existing cases will get harder and harder, and what I see the new paradigm will be is distributed manufacturing and innovation. Only the most heavy industries will be done in specific countries, like electronics parts in China, bulk chemicals in Canada, metals in Australia, fine chemicals in Japan, then everything based upon will be built right where they were designed. --- End quote --- Agree. There is no reason why American, Chinese, European, or even African CNC machines and robots cannot all be competitive against each other... so there is no reason to concentrate most manufacturing except for heavy stuff. |
| Marco:
China and other Asian tigers concentrated IQ and academic development in regions for a large part with the bussiness attracted with low wage low educated labour. They started low on the value chain and pulled their way up. With automation making low wage low educated labour less interesting, it will become a lot harder to follow. Vietnam and other relatively undeveloped countries might be interesting to set up some highly automated factories kept running by expats, but that doesn't really get Vietnam much development. |
| Black Phoenix:
--- Quote from: blueskull on August 22, 2020, 01:03:53 pm ---At the heart of the world factory, Shenzhen, real estate price has gone up to above $20k per usable square meter. I wonder why factories fled. Earlier this year when factories are locked down, instead of selling real estates to save their factories, rich men here sold their factories to save their real estates. Real estate prices have dropped everywhere else in China, but have risen here by 10% just this year. That's how crazy things are here. Thus I didn't take loans to buy a house here. Instead, I took the money equivalent to nothing more than a bathroom here to buy a huge 350 sqm house at my hometown, and I will fled Shenzhen after I earned all the money my heart desires and retire as an engineering content creator or something at my hometown and fuck this place. --- End quote --- Can confirm, was In a work interview for a company in Zhongshan, and while talking with the owner he told me exactly that, most of the industrial zone of Zhongshan is factories who were previously in Shenzhen. Zhongshan being a Tier 3 city compared with Shenzhen, currently a Tier 1 city, the price per square meter is way lower, salary expectation also lower, so most companies gone there. Saw companies as Casio (manufacturing/assembly of the Calculators only) and Canon (diverse products from their portfolio) as an example (and the ones I remember well and have names common for the westerns to remember). For the manufacturing industries currently in Shenzhen and talking about the case of MSI, one that I know well, they have problems in getting people to work in the factory floor because, since it is a Tier 1 city the expectation of people in terms of salary is currently higher than before, so they are currently a little understaffed. Housing prices in Zhongshan is also way lower than here in Shenzhen, for the price of my current house in Shenzhen I can buy a way bigger one over there. Other kind of things also are cheaper, being food, supermarket necessities, etc. If everything goes OK, probably I will relocate too. For Shenzhen I see the shift into the services industry instead of the manufacturing currently. Probably also try to mimic some of Hong Kong's model too (but I could be totally wrong in what I'm saying). |
| SilverSolder:
Where would China's "Silicon Valley" be - i.e. where are silicon chips and other advanced components made? |
| Navigation |
| Message Index |
| Next page |
| Previous page |