AUO’s Songjiang plant in Shanghai will be closed. copper connection
AU Optronics is the world’s third largest and largest LCD panel manufacturer in Taiwan. It has a complete 3.5- to 8.5-generation production line and offers 1.1- to 85-inch panels covering a wide range of display applications.
In the factory, the employees made a banner of “AUDA has profited for more than 10 years, once saw the factory shut down and tears, and slipped factories to justice” in order to express their dissatisfaction with the plant’s surprise attack on the factory. copper connection
As of January 2018, AUO has accumulated 23,900 cumulative patent applications, and approved more than 17,800 global patents. Since the merger of Dahui in 2006, the market share of notebook LCD screens has leapt to the top in the world.
According to netizens, AUO Songjiang has 7000 employees in its glory days. In recent years, the number has fallen year by year.
In fact, the factory in Shanghai’s Songjiang is still in a profitable state. In 2017, AUO also recruited 1,200 engineers at universities in Taiwan to expand the recruitment of personnel for cloud system development and big data analysis. All indications indicate that the main reason for AUO to shut down its Shanghai plant may be due to its important customers Samsung and Apple quietly transferring orders.
In the past few years, Samsung has started a wave of massive capacity migrations and continuously shifted its production capacity in mainland China to Southeast Asia, leading to a drastic reduction in the number of workers in China. As of now, Samsung employs less than 3,000 people in China, while the number of workers in Southeast Asia has reached 140,000, which is 40,000 more than China’s peak period. In addition, Samsung’s $10 billion investment in Vietnam last year accounted for about 15% of Vietnam’s industrial output last year. As one of AUO’s important customers, Samsung is bound to make corresponding adjustments. copper connection
The name of the Samsung Empire is presumably well-received. This giant with a turnover of 180 billion U.S. dollars last year made Apple fear a third. However, in recent years, Samsung has been accelerating the pace of its withdrawal from China, especially after the Sud incident, Samsung’s withdrawal is even more determined. From tens of thousands of employees in mainland China, there is almost nothing left!
Samsung’s industrial transfer in China only a few years brings about the loss of millions of jobs and tax reductions, which is not a small loss to China’s manufacturing industry.
Many people are very disdain, Samsung left after leaving, we already have Huawei, Xiaomi, OV and other domestic mobile phones, just to seize the share, do not take it! copper connection
The media can watch lively and not too serious, but for the employment families involved in Samsung, they can’t laugh out. Samsung’s departure is not just a matter of thousands of Samsung employees, but a huge supporting industry chain. Samsung’s supply chain companies in China, such as AUO as described in this article, as well as upstream and downstream industries.
But things are far from simple. Samsung has invested billions of dollars in Vietnam, and Vietnam has replaced China as Samsung’s largest production base.
What is even more worrying is that not only Samsung is evacuating, Panasonic, Sharp, Toshiba, Sony, and Apple are secretly evacuated, especially the apple line. The value of the industry chain in China is as high as trillions. Just Foxconn has solved the problem. Nearly a million people have been employed; if Apple really withdraws, there will be no days when there is no work to do in the country. It will really be coming! This is not alarmist. copper connection
As for the transfer of Apple’s production capacity, it appears to be in a cloud. Since Foxconn’s rocket-like success in March, it has yet to get approval; from Apple’s first quarter earnings per share, revenue and iPhone sales exceeded expectations, but Lansi Technology, Yutong Technology and other Apple supplies Business performance fell sharply; from the Spring Festival of Foxconn Industrial Park to a quiet one after another, Xiaomi and Foxconn opened three new factories in India. The variety of data fights and bizarre phenomena indicate that Apple is likely to quietly transfer some orders from mainland China to the United States, South Asia, and Southeast Asia.
In addition, China’s overall economic situation, trade frictions and other factors may also have a negative impact on foreign-invested companies investing in China.
In many people’s impressions, foreign capital has completely declined in China and is already vulnerable. But what is the truth? In the four major cities in Guangzhou, Shenzhen and Shenzhen, foreign capital contributes 2/3 of Shanghai’s total industrial output value; it contributes 70% to Shenzhen’s economy; Guangzhou has more than 20,000 foreign companies, and its total industrial output value also reaches 62%! copper connection
In addition, including Suzhou, the industrial capital of the Yangtze River Delta, and Taiwanese-funded Xiamen, foreign capital occupies an overwhelming advantage. Only Beijing, where the central government garnered a lot of foreign capital, has a slight weakness.
This fully proves that it is not foreign companies that can not do without China, but we need foreign capital. This is the naked reality; unfortunately, most people do not realize that they are still sleeping in the dream of arrogant arrogance.
At present, the problem of the entire industry’s capital flows is already very heavy.
Companies like Samsung and AUO are all high-end manufacturing companies, and they are not the same as traditional manufacturing industries with overcapacity such as coal and steel. But even high-end manufacturing has now reached this end. copper connection
Now, people’s values have deviated, advocating is not the development of the real economy and manufacturing, but a virtual economy represented by real estate and financial markets.
Looking at the wave of closures in the manufacturing industry, especially in the private manufacturing industry in recent years, it is not entirely because of the low-end and backwardness, but because the overall situation has entered the “high risk, low return” cycle. What is terrible is that private investment has continued to decline and has now grown negatively.
Almost all manufacturing giants are operating real estate or financial projects, becoming a clear contrast. So you saw the real estate of the United States, Haier Real Estate, and Lenovo Real Estate.
Breaking out into the imaginary drama. Money is the smartest thing. It will flow to lucrative places. Capital is drawing smaller and smaller cakes in the most rational but most merciless way. People continue to increase leverage. copper connection
Feeling sour and cool, the consequences are serious. Greed is the nature of capital.
The financial sector is chaotic. Too many institutions do not create any value themselves. They just play speculation and play games of capital. What do you think the value they created is reflected in? If it is considered worthwhile for some people to take profits, it may still be worth a bit. copper connection
The land finances have fed local governments. In some cities, they feel that dirty manufacturing plants have affected the environment and cannot represent the image of the city. It is not important for them to stay. They are immersed in the mirage of real estate and finance, forgetting the prosperity of the city – manufacturing, and forgetting the way to come.
Industrial-oriented, financial use. We still have to go back to the foundation of a country – a high value-added manufacturing industry.
Come on, my country! copper connection
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