Hon Hai Samsung LG said that it would be a relief to build a domestic appliance manufacturer in the United States.

Electronic enthusiasts eight o'clock: Although China's home appliance industry still lags behind Japan and South Korea in some key technologies and core components, China is absolutely leading the world in terms of manufacturing scale and capabilities. However, since 2017, this relatively stable situation seems to have shown signs of loosening. Recently, Nail Technology learned that the world's largest foundry company, the acquisition of Japan's Sharp's Hon Hai, and the world's largest electronics company Samsung, respectively, said they want to go to the United States to build panels and home appliance manufacturing plants, the future of China's home appliance manufacturing advantages can still Keep, will China's home appliance industry be hit hard?

Chinese brands are beginning to go global

The United States suddenly became a toon

Five years ago, it was hard to imagine a large number of consumer electronics brands rushing to invest in the United States. After all, even the globally influential Apple is reluctant to produce iPhones in the United States. However, this situation has changed dramatically today.

The iPhone is not produced in the United States, and Apple handed it over to Foxconn in China. But what's interesting is that Foxconn's parent company, Hon Hai, has decided to invest in the US to build a new factory. On May 27th, Sharp President Dai Zhengwu, who had been acquired by Hon Hai, confirmed that Sharp and Hon Hai will go to the US to invest in panel factories.

The factory invested in the United States is not doing the same, and its production capacity and investment amount even exceed the panel factory invested by Hon Hai in Zengcheng, Guangzhou. It is reported that the 10.5 generation factory codenamed 818 will be located in Wisconsin, USA, with a monthly production capacity of 90,000 pieces, which can produce high-end panels for 8K TVs; the 6th generation factory codenamed 868 will be located in Detroit, using Sharp IGZO technology. Specializing in high-end products such as automotive and aerospace, with a monthly capacity of 60,000.

Not only Hon Hai, South Korea's Shuangxiong Samsung and LG were also disclosed to go to the US to build factories. "Korea Economic News" reported that Samsung Electronics plans to invest 300 million US dollars to build a home appliance manufacturing plant in the United States, which will be built in Blythewood, South Carolina, to produce washing machines and gas stoves. Earlier, LG Electronics announced in March that it would invest $250 million to build a new appliance factory in Tennessee, USA.

Made in the US is indeed flowing back

Despite the rapid development of China's economy and the acceleration of industrial transformation and upgrading, some manufacturing industries are inevitably moving to countries with lower costs. In addition to China, foreign well-known electronic brands have gradually become the norm in Vietnam, India and other countries. But what many people don't understand is why Hon Hai and Samsung are going to the developed countries to invest in factories in the United States.

Nail Technology believes that there are three main reasons:

The first is to passively respond to the call of the new US government. As everyone knows, the new US government is more inclined to trade protectionism and hopes to revive the US manufacturing industry. Therefore, it calls for even US companies to relocate manufacturing operations to the United States, and to issue explicit or implicit warnings to multinational companies in other countries. . In this context, Hon Hai, which has close business relationship with American companies, and Samsung and LG, which are highly dependent on the US market, responded to the call to invest and build factories in the United States, which is politically correct.

The second is to consolidate the leading position in the US high-end market. Samsung and LG's business in the Chinese market has been declining year after year, but it has an excellent appearance in the North American market. Choosing to invest in a home appliance factory in the United States will ensure a faster market response and consolidate the status of the world's most important high-end market. Through the good performance in the high-end market in North America, the brand and product and technology advantages can be traced to the market in China and other emerging countries, driving the development of the entire home appliance business.

Third, the investment cost is not as high as expected. Earlier, Chinese glass king Cao Dewang said that the cost of investing in factories in the United States is not higher than that of China. He said that in the United States, the land is basically no money, and the energy and electricity prices are half of that of China. The natural gas is only one-fifth of that of China, and the comprehensive taxation of China's manufacturing industry is 35% higher than that of the United States. Cao Dewang, who plans to invest US$1 billion in the US, believes that the profits of the US-based factories are higher than those of China.

China's home appliance industry does not have to panic

International giants such as Hon Hai, Samsung, and LG have chosen to invest and build factories in the United States, will it have an impact on the development of China's home appliance industry? Nail Technology believes that the impact will definitely be there, but there is no need to panic.

First of all, from the perspective of total volume, there is still a considerable gap in the size of US manufacturing compared with Chinese manufacturing. At present, after more than 30 years of development, China's home appliance industry has formed a sound industrial chain and strong manufacturing capabilities, becoming the largest production base of global home appliances. According to the data, China's air conditioners, color TVs, and most small household appliances account for more than 70% of the world's total output. The sales of 45 types of home appliances made in China rank first in the world. Although some electronics giants have recently set up factories in the United States, the economic structure of the United States will not make the manufacturing industry mainstream. The scientific industrial division of labor is still a reasonable path for global economic development.

Chinese brands can be seen all over the world

Second, China's home appliance industry is already at the key node of transformation and upgrading, and manufacturing is not the only advantage. At present, China's home appliance brands represented by Haier, Hisense, Skyworth, Changhong, BOE, and Huaxing Optoelectronics have made great progress in key technologies and components such as chips, compressors, panels and modules, and have gradually built up coverage in the industrial chain. The comprehensive competitiveness of the downstream. The scale and cost advantages of manufacturing are no longer the only advantages of China's home appliance industry. Technology and market advantages will dominate the next round of growth in China's home appliance industry.

Finally, economic globalization is the general trend, and China's home appliance industry is also vigorously expanding overseas markets. Haier has become the world's largest white power enterprise, with industrial parks and production bases in the United States and Europe; Hisense has factories in the Czech Republic and Mexico, and R&D centers in the United States; Skyworth has many layouts in Europe, and acquired German TV brand Meiz... With the development of the global business of China's household electrical appliance enterprises, it has become the norm to invest in factories in Europe and the United States. Therefore, not only will Hon Hais go to the United States to build factories, but in the future, more Chinese companies will go out and make cakes in overseas markets.

On the whole, as long as China's home appliance industry continues to enhance its core technology capabilities and consolidate its dominant position in the local market, it will not make a substantial impact on us in the overseas market.

Disclaimer: The electronic reprinted works of E-Commerce Network are as far as possible to indicate the source, and all rights of the owner of the work are not transferred due to the reprint of this site. If the author does not agree to reprint, please inform the site to delete or correct it. Reprinted works may be subject to change in title or content.

Solar Application

The major application of solar energy are as follows: (a) Solar water pumping (b) Solar led lights (c) Solar distillation (d) Solar portable power (e) Solar drying of agricultural and animal products (f) Solar Carport (g) Solar Battery (h) Solar electric power generation (i) Solar thermal power production (j) Solar green houses.

Sunket is professional on supplying all these solar products

Solar Application,Solar Lights ,Solar Pump System,Solar Carport,Portable Power Station

Wuxi Sunket New Energy Technology Co.,Ltd , https://www.sunketsolar.com