Chapter 365 Dilemma
Guo Taimin still thought about Cook's proposal. According to the current Huayuan exchange rate, Foxconn's OEM income in China has indeed dropped a lot. If it can be transferred to India, where labor costs and environmental protection costs are lower, you can indeed consider it.
But Guo Taimin hesitated a little: "President Cook, if we move the factory to Tianzhu, there may be no way to provide many parts we need."
This question was actually expected by Cook, but this could not stop him from moving to the Apple OEM factory.
In fact, last year, Apple cooperated with Foxconn to establish an OEM factory in Samba, Latin America.
Although construction has begun in Samba's Foxconn OEM factory, Guo Taimin, as the president of Foxconn, is worried about this.
The reason why I am worried is that 44.9% of Apple's spare parts are supplied by Chinese companies, and the factory is set up in Latin America. There is no supporting spare parts supplier in the local area, so I can only import spare parts from China.
The transportation costs, tariffs and warehousing costs were increased. At the same time, Guo Taimin expressed doubts about whether Samba could provide high-quality technical workers.
I have the same concerns when I went to Tianzhu to set up a factory. Industrial workers are not cabbage and can be trained in a few months.
"Guo, you should consider it in the future. If Huayuan continues to appreciate, the low-end industries here will soon lose their competitiveness." Cook reminded.
Guo Taimin nodded: "This may indeed exist, it is just a problem with the local spare parts supplier..."
Cook, who was prepared, waved his hand: "You can ask them to set up factories in Tianzhu together, but there will be an industrial chain." In addition, I plan to ask the suppliers of Xizhou Alliance and North America to set up factories in Samba and Tianzhu, so that the industrial chain can be concentrated in these two places."
Well, Guo Taimin suddenly became embarrassed, after all, the supplier was not his one-man show.
"Don't worry, if they don't agree to set up a factory in Samba, then kick them out of the supply chain." Cook was confident.
Under Cook's coercion and inducement, Guo Taimin nodded and agreed to transfer some OEM factories to Tianzhu, and cooperated with Apple to attract some domestic manufacturers to Tianzhu.
But things are really so simple. Follow Cook's script
Stayed at Foxconn for a long time.
Cook brought Apple's business team to BYD's Pengcheng headquarters.
Wang Chengfu was not too surprised that Cook and his group arrived, because Apple was looking for BYD to hope that BYD could produce Apple, and at the same time, it could build a bridge for Apple, and use the Suiren-based industrial chain.
Among the domestic consumer electronics OEM companies, in addition to Long Totem and Foxconn, it is BYD.
Moreover, the high-performance batteries developed jointly by BYD and Long Totem have always been produced by BYD and the batteries supplied to Long Totem are also produced by BYD.
Battery capacity has always been Apple's weakness. Cook, who is a supply chain, will naturally not hang himself in a tree.
The two parties blew each other for a few minutes, from the topic of entering this meeting.
Cook threw out the bait: "Your company has a lot of advanced technologies, and our company is looking forward to cooperation with your company. Is BYD interested in OEM production of Apple mobile phones and computers?"
"As long as Apple needs it, our company will naturally have no problems." Wang Chengfu answered in an ambiguous manner.
"This is my condition." Cook handed over a contract.
Wang Chengfu and the two vice presidents took turns to look through it. After more than ten minutes, he replied:
"President Cook, your company wants to purchase Thor batteries, add silicon nano-coating, BOE micro-screens, and a series of other spare parts, and there may be some problems."
"Is it the price? We can..."
Wang Chengfu shook his head directly: "No, President Cook, this is not a matter of money, but a matter of patent authorization."
He explained to Apple and his group that due to the high domesticization of domestic mobile phones, in order to reduce vicious competition and mutual dismantling, the semiconductor alliance led by Long Totem established a patent management committee.
Unified management and authorization of patents involved in mobile phones, computers, semiconductors, foundry, spare parts, and various patents involved.
BYD's OEM and spare parts industry are supervised and guided by the Patent Management Committee.
Within the Semiconductor Alliance and the Communication Equipment Alliance, patent authorization is relatively simple and the fees are relatively reasonable.
However, if BYD wants to manufacture OEM for Apple, it must go through the review of the Patent Management Committee. Unless Apple does not use the patents of the Patent Committee, otherwise it will not be avoided.
Obviously, whether it is Thor batteries, silicon nano-plating, micro-screen, temperature difference power generation module, high-sensitive temperature sensor, etc., these are patented products of the Suiren series.
It’s not something you can use as long as you want. Wang Chengfu understands his meaning very clearly, that is, let Cook go to the patent committee and apply for a patent authorization package.
"Mr. Wang, can't BYD help Apple apply?" Cook was a little dissatisfied.
Wang Chengfu spread his hands: "President Cook, OEM companies have no right to apply for patent packages for other companies. After all, the price and purpose of the product that the patent committee wants to evaluate is not something that BYD can determine."
Hearing this, Cook frowned. The company he was most reluctant to cooperate with in China was the Suiren-based company. The other party not only hated foreign capital, but also was a competitor to Apple.
Apple, which has few 4G patents, will definitely cause heavy bleeding when encountering the Suiren system.
Cook shook his head depressedly: "It seems I'm going to Shanmei."
"By the way, President Cook, I'll give you a piece of advice and give up the idea of letting those suppliers set up factories in Tianzhu!" Wang Chengfu reminded with a smile.
"Why"
"Because the Patent Management Committee has special regulations, it is strictly prohibited to set up factories abroad in industries involving core technologies, unless there is no technology involving Suiren patents, it will not be restricted."
Cook's face suddenly looked ugly. It was simply a delusion to try to bypass the patent hegemony of the Suiren system in China.
Since many spare parts suppliers use silicon nanoplating technology, high-purity nanopowders, and various nanowires, these things are strictly prohibited from leaving the country.
If spare parts manufacturers dare to set up factories overseas, these materials will not be available unless Apple is willing to use defective spare parts.
The long-arm jurisdiction of the Patent Committee is actually similar to that of the United States in terms of technical patents. This is the first time Cook has encountered such a problem.
If you want to set up an OEM factory abroad, it’s up to you, but the spare parts production lines and raw materials involving core technologies are absolutely not allowed to leave the country.
Therefore, Apple's OEM factories in Samba and Tianzhu either seek suppliers from other regions instead, or import spare parts from China.
However, at present, the domestic manufacturing industry is actually in a state of monopoly, and there may be no suppliers abroad.
For example, on the micro-screen, there are currently two companies, Dragon Totem and BOE, while Thor battery is only BYD, and CATL, which has recently obtained Dragon Totem license.
For example, temperature difference power generation modules, ultra-precision sensors, etc., it is basically in a monopoly state in China.
Cook's plan to set up an OEM factory in Tianzhu was immediately hit hard. These core spare parts cannot be set up in Tianzhu factory, which will directly destroy the labor cost advantage of the OEM factory.
Chapter completed!