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Hon Hai to invest in Chinese province

Publication Date : 03-03-2014


Hon Hai Precision Industry Co. Ltd., trading as Foxconn Technology Group, plans to invest 220 million renmenbi (US$36 million) in the Chinese province of Guizhou to further its development in the big data industry, according to Chinese media.

Sources say Foxconn is signing a contract with the local government and plans to build a research center that covers 45,000 square meters as well as a data center that covers 2,500 square meters.

Hon Hai Precision Chairman Terry Gou wants to team up with Guizhou government officials to create a company that specialises in big data analysis as part of its effort to break into the big data industry, sources said. The company plans to construct a green data center that applies energy conservation concepts. The company also intends to introduce a manufacturing facility and data center that apply green concepts.

Focus on green concept adoption

Foxconn signed a strategic cooperation agreement with the province of Guizhou in July of last year. Construction work broke ground in the province's fourth-generation green industrial park in October. The world's largest electronics contract manufacturer set the goal to break into six areas: electronic communication product research and development, energy conservation product research and development, international data center, longevity lifestyle products and services, a rich and prosperous town (dwelling facility designed for the company's employees) and outdoor sports.

Foxconn has said earlier that it will apply green concepts to construct all its production facilities in Guizhou. The company will utilise local building materials as well as adopt energy and water conservation methods. The data centre will be constructed based on local contour, taking advantage of Guizhou's natural environment to build efficient facilities.

Hon Hai earlier showcased in a technology exhibition that the company plans to invest in the development of the Internet of Things (IoT) that integrate big data calculation, a cloud platform and IoT testing and application.

Hon Hai to transform business model

Market analysts said recently that Hon Hai will accelerate its efforts in transforming its business in the first half of this year as it strives to diversify and diverge from its traditional role as a hardware manufacturer.

They said the year 2014 will be critical for Hon Hai to extend its reach into software development through its new business model: integration, innovation, design and manufacture. The new effort is expected to help the company upgrade itself in a bid to provide clients with value-added services and boost its earnings.

The costs of production have risen in Hon Hai's key manufacturing base in China, where wages have risen sharply. Sources said the company's clients constantly want lower prices.


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