Foxconn Billions U.S. Dollar Moves to the West: More Than Half of the World's iPads Are Made in Chengdu

On March 2nd, Apple’s new iPad2 debuted, again causing a global concern. Apple’s fourth quarter financial report released in October 2010 showed that iPad sold 4.19 million units in the three months of July, August and September. Apple said that if there is not enough supply capacity, it could have sold more iPads.

Apples in California in the United States are in an emergency, but they have provided a good opportunity for Chengdu, China, thousands of miles away. Also in October 2010, iPad started trial production at the Foxconn factory in Chengdu.

Foxconn Group Chief Investment Officer Zhuang Hongren recorded the entire change of Foxconn Chengdu project from start-up to production and expressed deep feelings at the launching ceremony: “Chengdu project was built and put into production in 76 days, creating a history of Foxconn's global plant construction. new record."

"More than two-thirds of the world's iPads will come from Chengdu." Tang Jiqiang, director of the Development and Planning Bureau of Chengdu Hi-tech Zone, told the Daily Economic News.

The Foxconn iPad project was once listed as Chengdu's “Project No. 1”. Therefore, the process of landing this project in Chengdu has not been known to the outside world. "Daily Economic News" reporter after nearly a year of in-depth interviews, was able to gradually restore the key nodes.

Upgrade password: 802001

In March 2011, the Chengdu Economy and Information Technology Commission and a "Chengdu Industrial Development Support Directory (2011)" are being revised repeatedly and are about to come out - this will be the blueprint for the future work of the person in charge of the various branches of the industry.

"The key points from the earliest 801, to 802, and later to 803, precisely reflect the Chengdu government's decision-making ideas for the development of IT industry." Chengdu Economic and Information Commission, said relevant sources.

All the "801" and "802" numbers he refers to, such as numbers starting with "8", are the codes of the electronic information industry in this "Catalogue."

For example, the Foxconn factory in Chengdu's electronics manufacturing industry is implemented in this catalog and it belongs to the project numbered 802001. It represents “flat panel display devices (over 4.5 generation TFT-LCD, OLED, laser display devices). And its key parts."

This seemingly insignificant number eventually became a project affecting 10 billion U.S. dollars in investment. According to data released by the Chengdu Municipal Government, after the entire Foxconn Chengdu project is put into production, the total annual output value will reach more than 200 billion yuan, which is the province’s previous electronics 1.6 times the total output value of the information industry.

More figures are updating the territory of Chengdu's IT industry: By the end of 2010, Dell, Lenovo, Compal, Wistron and other projects have settled one after another. It is estimated that by October 2011, 100 million units of computer production capacity will be formed, accounting for global About 20% of the total production capacity means that one out of every five computers produced in the world is "made in Chengdu."

According to a report obtained by the reporter, in 2010, Chengdu introduced a total of 8 “leader-driven major projects” related to the IT industry, involving a total investment of 11.575 billion U.S. dollars.

And Foxconn become "the intersection of adversity"

Why did Chengdu choose Foxconn? Why iPad? Why did Foxconn choose Chengdu? Dr. Tang Jiqiang said that the answer to the above question is no accident.

In October 2009, Chengdu and Foxconn passed a five-year “long-distance love” and formally signed a cooperation agreement during the Western Expo. The Foxconn Chengdu project announced at that time was a huge project: it included LCD display production lines, LED-TVs, LCD modules, precision molds, and 3C digital product stores.

Although the total investment is up to US$5 billion, it does not include the production of end products. Moreover, after the signing of the contract, the Foxconn Chengdu project progressed slowly.

On April 3, 2010, Apple officially launched the iPad. The shock brought about by the government and industry decision makers. From May 23rd to 28th, a delegation led by Sichuan Party Secretary Liu Qilu and Chengdu Party Secretary Li Chuncheng launched the “Tianfu Sichuan Baodao Tour”. The talks with Foxconn were the highlight of this visit.

“They turned the chair of the high-speed rails to sit in front of them and talked very enthusiastically.” According to Zheng Li, deputy director of Sichuan Provincial Investment Promotion Bureau, Guo Taiming accompanied Liu Qilu and Li Chuncheng to take a high-speed rail to visit Hon Hai Group and Chi Mei Corporation. To the iPhone and other Apple products.

The two sides negotiated with each other and met with Foxconn's “jumping” incident. Gou’s hurried to Shenzhen to handle related issues.

May 26 was the day when Sichuan Province and Foxconn signed a strategic cooperation agreement. Guo Taiming had to hurry back to Taiwan. When Liu Qichen and others expressed their indifference to his hard work, Terry Gou mentioned another source of his relationship with Chengdu: At two o'clock in the afternoon on May 12, 2008, he was preparing to discuss the details of the investment project with Chengdu Hongge Chang, but Suddenly interrupted by a sudden earthquake, the delay was more than a year. It was not formally signed until October 2009.

Terry Gou said that although there are many good things, it is precisely because of this that Foxconn and Sichuan have had a difficult time.

In June 2010, Foxconn was deeply mired in the "jumping building" incident. Sichuan Province sent doctors from the West China Hospital Mental Health Center to Shenzhen to help Foxconn handle the crisis. At the same time, the Chengdu Municipal Government formally established the "Foxconn Working Group" and was led by Vice Mayor Xie Ruiwu. Their task is very clear: understand what Foxconn's ace products are, what projects are suitable for Chengdu, what is the idea of ​​Goo's idea...

Soon, the working group captured an important message: due to the “jumping” incident, Foxconn has accelerated the pace of moving out of the industrial base and plans to divert the production line from Shenzhen to other provinces within a few months.

Gou Ting-ming raised a problem with the investment groups from all over the country: within 20 days, a 100,000-square-meter factory building and a dormitory that can accommodate 20,000 people were found.

The investment groups around the country began to search quickly. There was news that Zhengzhou, Henan Province took the lead to find a 140,000 square meter plant. Zhengzhou finally won.

Capture iPad

The Chengdu Investment Promotion Team captured another key message at the time of frustration: For the iPad, Gou also had the idea of ​​expanding production. Although the iPad was sold for only two months at the time, sales have grown explosively.

“How do you not go for this?” an insider of Foxconn told a representative of investment in Chengdu. On July 3, Ge Honglin led the team to Shenzhen again.

This time, Terry Gou proposed a nearly "rigorous" condition: To get the iPad project, the government will initially build the factory on behalf of the factory, and to build a factory of several hundred thousand square meters within three months, and the factory area will be expanded within six months. To 1.7 million square meters. In addition to the area, Foxconn also put forward specific requirements for the height of the plant.

"The agreement has not been signed before the start of building a factory?" Investment group can not help but worry. However, according to a person familiar with the matter, Ge Honglin immediately told Gou Ting-ming: “There is no problem in building the plant in three months”, and it is frankly signed on the letter of responsibility. For Ge Honglin's happy reply, Terry Gou is still skeptical. However, after learning that Ge Honglin was a senior expert at the Shanghai Iron and Steel Research Institute and a vice president at Shanghai Wugang Group Corporation and Shanghai Baosteel Group Corporation, and when he was the authority of the steel plant, Guo Tingming was pleased to finalize the project site for the Chengdu project. Location, scale and scheduled launch date.

Afterwards, Ge Honglin's words impressed the members of the investment group: “The iPad project has risks, but if it is not on, wait, it is more risky!”

The following week, the project progressed rapidly.

On July 12, the construction of the Foxconn iPad project was officially grounded in Chengdu.

On July 13th, a team named “Project No. 1” was established in Chengdu to fully promote the Foxconn iPad project and even establish a “five-sided” strategy: business invitation, negotiation, construction, recruitment, and production.

On July 14, when Liu Qichen and Li Chuncheng led a team to talks with Shenzhen and Guo Taiming, an exciting news finally came out: Foxconn's total investment in Chengdu will exceed 10 billion U.S. dollars, equivalent to signing the 2009 Western Conference. The amount has doubled.

At the same time, in the high-tech West District of Chengdu, a land of about 4 square kilometers was circulated. As the Foxconn plant construction, 15 square kilometers will be used as living supporting land to enter the construction area.

On July 22, the 4.68 square kilometer comprehensive bonded area based on the location of the Foxconn project entered the declaration process.

During the same period, Foxconn's three subsidiaries in Chengdu, Chong Kang Technology, Hong Fu Jin Technology and Fu Tai Hong Technology were registered and established. The vigorous recruitment work also started at the same time.

One day in July 2010, Zheng Li flew to Shenzhen again. When she arrived at the airport, she received a telephone call from Guo Tingming. He hopes to find some supporting companies near Chengdu and urgently needs suppliers of aluminum extrusion profiles. Zheng Li, while traveling by car, calls Chengdu and arranges for the preparation of relevant materials. After 40 minutes, a piece of material was sent to Mr. Gou's hands, including detailed information on the four aluminum extrusions factories located near Chengdu.

In order to calmly deal with similar situations in the future, “No. 1 Project Headquarters” has subsequently established a “Working Group of Supporting Industry Chains” to sort out dozens of materials for supporting industries.

Conquering the Apple Although Terry Gou has stated that he will put the iPad production project in Chengdu, the project is still "bad" - it has obtained Apple's license.

On August 18th, Apple's audit team came to Chengdu and Ritarani, vice president of manufacturing, personally supervised the team.

Apple's “Examiners” came to Chengdu to prepare quarters for future employees of Foxconn. The three apartments were neat and straight, and the layout was reasonable and orderly. On the construction site, more than 2,000 construction workers are working overtime to start construction.

What surprised the “Examiner” was that the Chengdu government officials who accompanied them to investigate were using the iPad and were skilled at the operation. Walking on the street in Chengdu, Ritarani saw the iPad on the electronic screen in front of a bank. The accompanying staff explained to her that the information on the electronic screen is as follows: to participate in the ** event and win the iPad award. This made Apple's "Examiners" overjoyed. "They knew little about the city in western China. Now they realize that 'Chengdu people are closely following the world's trends."

After sending away Apple's "Examiner", Zheng Lima went non-stop to Shenzhen, and an insider of Foxconn quietly told her, "Apple has agreed to produce the iPad in Chengdu."

Zheng Li quickly found Guo Tingming to confirm this news. Who knows not to get a positive answer, Terry Gou smiled and said: “You don’t need to go for investment. I’m now the biggest 'Ministry of Investment Promotion' in Chengdu. What you have to do is give me a service. All right, we are on the same train. The train is going to work at high speed!"

The internationalization of the industry has brought about the internationalization of the city. “The industry is not internationalized. How does a city become international?” Tang Jiqiang summed up the significance of the Foxconn iPad project to the Chengdu IT industry. “The landing of the Foxconn iPad project provides Chengdu IT industry with a great opportunity to leapfrog development in the global industrial restructuring and is a new benchmark.”

“Sometimes I think that I feel that working here (Hi-tech Zone) is really a kind of happiness.” Standing in the office, Tang Jiqiang looks out the window, the streets of the High-tech Zone are neat and clean, and the cars move on the road quickly and orderly. The powerful pulse of the city is beating. “We are thinking about the problems of these projects after they settled in Chengdu. Undoubtedly, IT will inject new vitality into the old Chengdu.”

At the beginning of March 2011, the Chengdu-Chongqing Economic Zone was approved by the State Council. The news came out and suddenly became a hot topic in the Sichuan-Yunnan region. Chengdu and Chongqing are arguably the "dual-core" of the country's fourth-largest economic zone. The wrestle between these two cities is no longer a secret. This point, "Foxconn snatch war" in the performance is particularly evident.

On August 4, 2009, Foxconn signed a contract with Chongqing, and the production line of 20 million notebook computers and accessories eventually settled in Chongqing. In October 2009, Foxconn signed a contract with Chengdu and announced at the end of 2010 that it will increase the investment to US$10 billion. Apple iPad projects will be settled in Chengdu. Chengdu pulled back a game.

In the soon-to-be-formed Chengyu Economic Zone map, where will the "dual-core" co-opetition approach go?

At the end of last year, Chengdu, where many IT giants ushered in, the reporter visited a number of companies and related government departments and found that people here are accumulating more heavy ammunition for the hardware that is about to unfold. In the past ten years, the tortuous development of Chengdu's IT industry may become another step and step for the next decade or even longer.

Undoubtedly, Chengdu will win the future.

Rubber Cable

Chongqing Taishan Cable Co., Ltd. , http://www.cqbareconductor.com