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Hon Hai touts BlackBerry ties, may jointly invest in Indonesia

Publication Date : 27-01-2014

 

Hon Hai Precision Industry Co. will continue to cooperate with BlackBerry Ltd., and the two companies may team up to invest in Indonesia, the company's chairman Terry Gou said.

Hon Hai held a charity carnival at National Taiwan University's stadium yesterday, with former minister of economic affairs Shih Yen-shiang and representatives from Germany and Indonesia attending.

Gou said that Hon Hai is considering making investments in the US, Germany and Indonesia this year, adding that Hon Hai is planning to cooperate with automotive manufacturers from Germany.

Hon Hai will continue to work with BlackBerry Ltd. BlackBerry's new devices, assembled by Hon Hai's mobile unit, will debut at the February 24-27 Mobile World Congress tech fair in Spain. Gou said that BlackBerry's expertise lies not only in smartphones, but other burgeoning areas as well.

The US will remain the largest market in the next ten years, Gou said, adding that making investments in the US is the right strategic direction for the company, adding that many of Hon Hai's partners, including BlackBerry, hope it will establish new factories in the US, and Hon Hai and BlackBerry may team up to make investments in Indonesia.

Goal of 15-percent growth

Hon Hai's consolidated revenues grew a mere 1.25 per cent in 2013. Gou said that the company was “crouching” last year, and is prepared to “make the leap” this year, with 15-per-cent revenue growth as the company's goal.

Gou said that Hon Hai has already disassembled the company into 12 separate sub-groups. While the company's revenues grew from NT$1 trillion (US$33 billion) to NT$4 trillion (US$131.7 billion) in the past 10years, Hon Hai aims to achieve a revenue scale of NT$10 trillion in the next ten years.

The company plans to extend business lines into e-commerce, 4G networks and factory automation, and they will be providing products and services related to the Internet, cloud computing, hospitals, schools, transportation, the energy sector, environmental conservation and more.

Hon Hai will also further its cooperative relationship with Japan on panel research and development, Gou said. Ranking officers of Sharp Corporation, a Japanese multinational corporation that specializes in the design and manufacturing of electronic products, visited Hon Hai last week, according to Gou.

Hon Hai is the world's largest contract electronics maker. It is the second largest smartphone contract manufacturer in the world and the largest tablet contract manufacturer. It is also the largest private business in mainland China. The company employs 24,000 people in Mexico as well as owning facilities in Europe and Brazil. Indonesia would be the next country to invest in, Gou said.

Apology to the public

Guo also commented on the company's recent bribery scandal, yesterday, saying that 99.99 per cent of the company's employees are genuinely good people, and he is “heartbroken” that some ranking officers took bribes. He took the opportunity to apologise to the public and investors yesterday.

The company's former senior deputy general manager Liao Wan-cheng was recently detained by the Taipei District Prosecutors Office. Liao had been working for Hon Hai for 15 years, and his accumulated salaries, bonuses and stock holdings are worth as much as NT$600 million, according to Gou, adding that he could not fully understand why Liao would involve himself in the bribery case.

US$1 = NT$30.33

 

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