Foxconn’s investment layout in Henan goes further.
Hon Hai recently announced that Foxconn will invest in the construction of a new business headquarters building in Zhengzhou to carry the functions of the new business headquarters. The first phase of the project is located in Zhengdong New District, with a total investment of about RMB 1 billion.
Where is Foxconn’s new business headquarters building built? What is the location advantage? What function will it assume in the future? At noon on July 25th, shanghai securities news reporter explored the latest situation of Foxconn’s new business headquarters building.
Exploring Foxconn’s new business headquarters building
The reporter’s investigation found that at the intersection of Sanquan Road and Longhu Inner Ring North Road in Zhengdong New District of Zhengzhou City, this piece of land with a large area has all been surrounded by blue enclosures. According to informed sources, this is the location of Foxconn’s new business headquarters building. The first phase of the project covers an area of about 43 mu.
Shanghai securities news reporter Wang Qiaoqi/photo
Across the road from it is the Innovation Incubation Base of Zhongyuan Science and Technology City, which is also the transitional office of Foxconn’s new business headquarters.
Geographically, Foxconn’s new business headquarters building is located in the "golden area" of Zhengzhou-the "dragon head" position of Beilonghu area, with obvious geographical advantages.
In terms of transportation, the area is close to Zhongzhou Avenue, Longhu Zhonghuan Road and other important urban trunk roads, and transportation networks such as high-speed, high-speed rail, subway and public transportation have been formed.
There are also supporting facilities in the vicinity, such as Tsinghua High School Affiliated to Tsinghua University, Foreign Children’s School, Zhengda First Affiliated Hospital, Financial Island Lake Business, Zhengzhou Longhu Park and Fengshan Forest Park.
More importantly, high-tech enterprises gather near the location of Foxconn’s new business headquarters building, and companies such as Superconfusion and East Microelectronics are adjacent to it. The nearby Innovation Incubation Base of Zhongyuan Science and Technology City has settled in a number of characteristic digital innovation laboratories and science and technology innovation platforms such as artificial intelligence public laboratories.
According to Hon Hai’s announcement, the new business headquarters building will mainly build seven centers, including headquarters management center, R&D center and engineering center, strategic industrial development center, strategic industrial financial platform, industrial research institute and key talent center, marketing center and supply chain management center, and will implement the "3+3" strategy for Foxconn (three emerging industries of "electric vehicle, digital health and robot" and three new technologies of "artificial intelligence, semiconductor and new generation mobile communication").
"In February 2023, Chairman Liu Yangwei led the Foxconn senior management team to visit, and the four-day trip was all arranged in Zhengzhou. After that, in just over 60 days, Chairman Liu Yangwei came to Zhengzhou twice, and the words of’ thank you, be grateful, and join hands again’ expressed by Henan were widely circulated. " A person close to Foxconn Technology Group told reporters that the close contact between Foxconn executives and Henan in the first half of 2023 finally yielded fruitful results on April 25 of that year-the new business headquarters of Foxconn Technology Group was established in Beilonghu, Zhengzhou.
Foxconn said that it will continue to deepen Henan, accelerate the implementation of the "3+3" transformation and development strategy, and build Foxconn’s new business headquarters into a core base and an important benchmark for Foxconn’s global innovation and industrial layout.
Judging from the expected functions, Foxconn’s new business headquarters will accelerate Foxconn’s landing in emerging industries such as electric vehicles, energy storage batteries, digital health and robots. This also means that in the future, a large number of technical talents and innovative resources will be gathered here to form a scientific and technological innovation and emerging industrial ecosystem.
Foxconn’s "Building a Car" Plan Accelerated Landing
In addition to the construction of Foxconn’s new business headquarters building, what attracts the attention of the outside world is Foxconn’s "building a car" plan in Zhengzhou.
Hon Hai revealed in the announcement that Foxconn will focus on the electric vehicle trial production center and solid-state batteries in Zhengzhou Airport Economic Comprehensive Experimental Zone (hereinafter referred to as "Zhengzhou Airport Area").
According to Henan Daily, on July 22nd, the People’s Government of Henan Province and Foxconn Technology Group signed a strategic cooperation agreement in Zhengzhou. Witnessed by Lou Yangsheng, secretary of Henan Provincial Party Committee, Wang Kai, Governor of Henan Province and Liu Yangwei, chairman of Foxconn Technology Group, signed the contract on behalf of both parties. Wang Kai also attended the launching ceremony of Foxconn’s new business series investment projects and the groundbreaking ceremony of the new energy vehicle trial-production center held in Zhengzhou Airport on the 23rd.
Henan daily data map
The reporter of Shanghai Stock Exchange learned that Foxconn’s goal this time is to build the core production base of Foxconn electric vehicles in Zhengzhou Airport Area. The related project (proposed location) is located in the southeast area of Zhengzhou Airport Area, only 2-3 kilometers away from BYD’s largest new energy automobile factory in China-Zhengzhou BYD production base.
"The plot to be located has been installed with enclosures last year, and most of them have completed the preliminary work such as cultural survey. These plots are marked with’ H Group’ land in all functional departments of the port area. " A person close to Zhengzhou Airport told reporters that Foxconn laid out and built the world’s largest Apple mobile phone production base in Zhengzhou Airport more than ten years ago. Today, the production area of Foxconn’s new business unit has once again settled in Zhengzhou Airport Area.
Song Xiangqing, vice president of the Institute of Government Management of Beijing Normal University and director of the Industrial Economic Research Center, told reporters that whether it is new energy vehicles, solid-state batteries, robots and other projects, or AI, semiconductors and other technologies, Foxconn is betting on the future track. It must be a well-thought-out decision to focus part of our business on Zhengzhou. "As a core city in the Central Plains, Zhengzhou has shown strong development momentum in transportation, science and technology, and new energy industries in recent years. In addition, the strong support of the Henan provincial government for high-tech enterprises has also provided a good external environment for the further development of Foxconn. "
In fact, since entering Henan in 2010, Foxconn and Henan have continuously deepened cooperation. The data shows that since the establishment of the factory, the cumulative import and export volume of Zhengzhou Foxconn accounts for about 60% of the total import and export volume of Henan Province and 80% of Zhengzhou City. In addition, during the "Thirteenth Five-Year Plan" period, Zhengzhou Foxconn has driven more than 200 related industrial chain enterprises to settle in Zhengzhou Airport, with an investment of 300 billion yuan.
"Henan initially gave Foxconn preferential treatment in terms of land and taxes, and later gave the province the power to help Foxconn recruit and provide human resources and other aspects of protection. Foxconn not only contributed bright import and export data to Henan, but more importantly, it solved the employment problem of hundreds of thousands of people in Henan. It can be said that the 14-year cooperation and running-in between Henan and Foxconn laid the foundation for win-win cooperation between the two sides. This is a historical choice and a two-way trip. " The above-mentioned insiders also said that the hand in hand with Foxconn this time is an excellent opportunity for Henan to transform, upgrade and accelerate development. With the gradual implementation of various projects, it is expected to bring a series of chain reactions to Henan, from scientific and technological innovation to industrial upgrading, and then to the transformation of economic growth mode, or it will all be accelerated.
What industrial signals does Foxconn release from overweight investment?
The reporter combed the public information and found that since 2018, Foxconn has also made a lot of investments in Zhuhai, Guangdong, Jinan, Shandong, Nanjing, Jiangsu and other places. These investments cover semiconductor industry chains from fabs and semiconductor equipment to packaging and testing.
Including the cooperation with Zhuhai municipal government to start the construction of a 12-inch wafer factory with a total investment of 9 billion US dollars; Established an investment fund of RMB 3.75 billion in cooperation with Jinan Municipal Government to promote the development of semiconductor industry in Shandong Province; Foxconn’s Jingding Precision Nanjing Semiconductor Industry Base and Semiconductor Equipment Manufacturing Project settled in Nanjing …
"Foxconn’s series of overweight investment actions reflect its emphasis on future technological development. Through these investments, Foxconn aims to strengthen its position in the global industrial chain while promoting local economic growth and technological progress. " Some people in the electronic information industry chain said that from an industrial perspective, it is inevitable for Foxconn to shift its investment focus from mobile phones to new energy vehicles. "With more friends and lower profits, this move is also to seek a’ second curve’. At the same time, under the strategy of multi-point layout and diversification of supply chain risks, Foxconn is likely to continue to invest more in new business in China on the one hand, and transfer some OEM business to emerging markets on the other hand. "
Some insiders also said that driven by high-quality development, corporate investment represented by Foxconn is also undergoing simultaneous transformation and upgrading. In addition, the advantages of China’s manufacturing industry, the scale of consumer market, deeply integrated supply chain, digital economy and other opportunities in the field of sustainable development are all important driving forces to stimulate its expansion.