Supply chains are vast and complex. With the need for
semi-conductors and rare earth metals, and the country's deep
consumer markets, the likelihood of reducing economic dependence on
China seems unlikely. But as labor costs in the People's
Republic have increased, manufacturers are searching for the next
fruitful labor market.
The Economist recently pointed to "Altasia" – a
pan-Asian alternative supply chain – as a potential threat to
Chinese manufacturing. For example, Foxconn is reportedly investing $700 Million
in a 300-acre plant in southern India as a push to diversify its
production. At Foxconn's scale, any reduction in cost can be a
massive boon to their bottom line. However, companies like Foxconn
are well ahead of the curve. In 2016, the manufacturer reduced a
single factory's workforce by more than half by introducing
robotic automation in that plant. For Foxconn, a 20% reduction in
headcount and a 6.7% reduction in the number of operators since
2020 has
