Chapter Eighty-Nine: Independence
Out of the Merchants Building, Li Yixuan asked as he walked: "Since you have invested in the mainland, you are not using the name of Foxconn." I would like to ask Foxconn what are your plans?"
He had to ask, because Foxconn had a stake in his Li Yixuan, and the Kwok brothers' factory in the mainland was operated through a shell company in Hong Kong, and there was nothing to do with him Li Yixuan.
If the Guo brothers come and transfer all the OEM orders to the shell company in Hong Kong, so that Foxconn becomes an empty shell, he Li Yixuan will not lose a lot of money, and he will not get a single dividend.
In addition, the Guo brothers invested in the mainland this time, and he did not receive the other party's notice beforehand, which made Li Yixuan realize that the other party wanted to get rid of him.
And this will bring new problems, according to Li Yixuan, although the Guo brothers have grown rapidly in recent years, more than sixty percent of the OEM orders are from Oranges, how do the Guo brothers want to get rid of Li Yixuan?
You must know that with Foxconn here, Li Yixuan will not provide orders to their mainland factories, and there are still contract restrictions signed by the two companies, so it is impossible for the Guo brothers to secretly transfer the orders to Foxconn to the shell company at the risk of losing the order.
Guo Taiqiang stopped, looked at Li Yixuan and said seriously: "Xuan Shao, please rest assured, in fact, this company has nothing to do with my brother's Foxconn, this is my own business, and Foxconn is my brother's company, and the construction funds of this factory are raised by me, and I have not used Foxconn at all." ”
"Your own business?" Li Yixuan knew he had misunderstood.
Guo Taiqiang nodded and said: "I can't always shelter under my brother's wing, there will always be an independent day, just like my brother broke away from his uncle and founded his own Foxconn." ”
Li Yixuan knows that there are ten brothers in Taiwan's Guo family, Guo Taiming and Guo Taiming's father are in the middle of the family, and Guo Taiming is the eldest in this family. Due to his poor birth, Guo Taiming worked very hard since he was a child, and after completing his junior college and military service, he worked as a seafarer for a few years, and then worked as a small salesman in a factory founded by his uncle.
His uncle founded the company, which is the originator of Taiwan's OEM enterprises, and the young Terry Gou learned a lot from his uncle's company, which laid a solid foundation for him to establish Foxconn in the future.
In 1973, Guo Taiming broke away from his uncle and established Hon Hai Plastic Enterprise Co., Ltd. in Taoyuan County, Taipei, with a capital of 300,000 yuan, and a small factory with only 15 employees and bosses to produce knobs for black-and-white televisions.
At that time, black-and-white TVs had just risen in Hong Kong and Taiwan, and relying on the knobs of black-and-white TVs, Guo Taiming made the first pot of gold.
And it was in this context that Guo Taiqiang joined his brother's company after completing his military service.
When Li Yixuan first met the Terry Gou brothers, the Kwok brothers had just established a branch in Hong Kong and were developing business in Hong Kong.
Without Li Yixuan's intervention, Guo Taiqiang would have stepped down as general manager of Hon Hai in 1987 and founded his own Zhengwei Group, which shared an old factory building with Hon Hai at that time.
Due to his arrival, Guo Taiqiang actually had the idea of starting a business in advance.
"Come out and do it yourself, does your brother support it?"
Guo Taiqiang smiled: "At first, my brother didn't support it, saying that I was too young and others wouldn't believe me." However, after much persuasion, the elder brother agreed. ”
"How do you convince your brother?" Li Yixuan was very interested.
Guo Taiqiang pointed to the construction sites around him and said: "You see that the mainland has been opened up, and the mainland has a population of more than 1 billion, which is a huge market, and the industry in the mainland is very backward, and there is huge potential for development in the future." I told my brother that I would explore the way first, and he agreed. He also borrowed a sum of money from me as my start-up capital. Before leaving, he said that if I fail, I will come back and work for him honestly, so I must succeed this time. ”
Guo Taiqiang's eyes were full of determination.
Li Yixuan understands his feelings, China has a saying since ancient times that brothers and sisters who are close to each other will have their own families when they grow up, and they will have their own jobs and careers, even in Western countries.
Guo Taiqiang is gentle on the surface, but the arrogance in his bones is not lower than that of his brother, and he has long had plans to be independent. Therefore, after he entered Hon Hai, he did not put on a superior appearance in front of his colleagues because his boss was his brother.
On the contrary, he is very humble, rushing to do any work, no matter how dirty and tired he is, he has no complaints. 365 days a year, 300 days in the factory.
For this reason, he delayed his life events, talked about several objects, and finally broke up.
The hard work is not without rewards, so that he can grow up quickly and have the ability to stand alone. Finally, today I decided to break away from my brother's protection and create my own world.
"What is the name of the company you set up and what is the business?"
"Zhengwei, making televisions, tape recorders, radios and computer power cords. ”
Sure enough, Guo Taiqiang's Zhengwei enterprise started as a power cord for electrical equipment, and later got involved in computers, televisions and other household appliances power supplies. In 1997, Zhengwei returned to Hon Hai, which was founded by his brother, and became a subsidiary of Hon Hai Precision at the same level as a subsidiary of Foxconn, focusing on Foxconn's consumer electronics products, specializing in various supporting projects such as cables, wireless communications, and consumer electronics parts.
Don't look at the supporting parts made by Zhengwei, the technical content does not seem to be high, but it is the most basic project of the entire electronics industry. Without these basic projects, all electronic products, from supercomputers and advanced Internet equipment to mobile phones that people use every day, would only become a castle in the air.
It is precisely with the joining of Zhengwei and the support of the underlying industrial technology that Foxconn can become one of the top electronic product OEM companies in the world in the future.
In German industry there is a saying of "hidden champions".
The so-called "hidden champion" refers to the most basic industrial category in the industry. It is characterized by a single product with a thin margin, but any high-end technology product cannot be separated from.
According to the Germans, if your products have a market share of 80% or more, annual revenues of more than 50 million euros, and you are still the absolute leader in the industry for 30 years, then your company is the "hidden champion" in this field.
And Zhengwei is such a company.
Why is the word "invisible" added? It is because this kind of industrial product is so inconspicuous that anyone will automatically ignore it, and even if you create a monopoly in this field, the International Antitrust Association will not trouble you, so it is named the "hidden champion".
"Hidden champions" are mainly concentrated in Japan and Germany, and the industrial categories of the two countries will have certain differences, which are not as good as the superalloy capacitors, resistors and point senses used in advanced computer motherboards and advanced graphics cards are provided by RB enterprises. RB occupies more than 95% of the international market in this field.
Like our car, the turbocharger on the engine, the ceramic self-lubricating bearing on it, is provided by a family business in Germany.
The factory is not large, and all the employees add up to less than 500 people, but its market share is as high as more than 97%, which is the absolute boss.
It's not that other companies have challenged them, but the quality of the products they make can't be compared with them, and even if they sell at a reduced price, it's useless.
Because the price of this bearing is quite cheap, and the turbocharger is one of the most important components of the engine, neither manufacturers nor individuals will purchase unreliable products in order to save this small money. What's more, the cost control of other enterprises can't win them.