Foxconn Gou Ming: Beyond LGD, Samsung Is The Ultimate Goal

Since the "Zhongxing Incident," Terry Gou has presented various "big moves." First, he recently bought a Micro LED display technology company and wanted to “carry over” the OLED. In future display technology, it can be inseparable with Samsung Electronics and LGD. This ambition is well known.

Gou has always regarded Samsung as a competitor, and now he has placed another sub-subsidiary on the LCD panel and semiconductor industry chain. This indicates that the company is learning that Samsung will continue to expand its industrial chain business and try to obtain more lucrative profits. In the panel area, Apple is Samsung's largest customer. After Apple introduced the OLED panel for the iPhone for the first time, Samsung’s production capacity and technical advantages in the small and medium size OLED panel market became the only OLED panel supplier for Apple’s iPhone. Apple had to Purchase OLED panels at high prices.

In contrast, Foxconn had to continue to suffer pressure to reduce OEM prices when it was OEMing iPhones for Apple, which was also a reason to stimulate Terry Gou’s desire to expand her business chain. After becoming the first in the OEM field, Gou also hopes that Foxconn can become a “vertically integrated” company with a higher profit margin, such as Samsung, and it controls everything from component parts to product design and brand promotion.

Foxconn already owns panels and OEMs. If it enters the semiconductor industry again, it will form a more complete industrial chain, so the company will also be expected to earn more revenue and profits when it comes to Apple's foundry. These industry chains also contribute to the success of the brand business, which is Samsung's success. Knowing that he knows what he can do, he knows well that if he wants to surpass his opponent, he must first understand him, "imitation him," and finally defeat it.

In recent years, Foxconn Group has been trying out business innovations and diversified transformations. However, so far, there is no business that can replace Foxconn’s “generation factory” label. In the eyes of people in the industry, Foxconn’s attempt to seek listing of A-shares, in addition to funding considerations, is also a hat that would like to remove Foxconn’s “foundry”. From the Foxconn A Shares prospectus, we can see that the company's operational strength is strong and its performance is stable, but it can also see the meager profits of the largest OEMs and the deep dependence on Apple and other companies.

Gou Ting-ming has revealed that in the past five years, Foxconn has been transforming itself into an intelligent manufacturing platform for the industrial Internet. During this period, cloud computing, mobile information, Internet of Things, big data, artificial intelligence, network platforms, and robotics technologies were combined and integrated into a vertically integrated industrial Internet platform. "Foxconn's biggest problem is that there is no independent brand. Although there is Sharp support now, Sharp's main influence is television. The influence of other products is limited." It seems that if you want to surpass your rival Samsung, Foxconn has a long way to go. To go.