Liu to closely cooperate with central and local governments on expansion plans
Taiwan’s Hon Hai Technology Group (Foxconn) (TWSE:2317) plans to establish industrial parks and optimize the business environment in terms of infrastructure, policies and laws in India.
“Through close cooperation with central and local governments, Hon Hai will plan to establish industrial parks and optimize the business environment in terms of infrastructure, policies and laws,” Chairman and CEO Young Liu said during presentation of second quarter report on 14 Aug 2023.
In addition, to existing operations in the Andhra Pradesh and Tamil Nadu states, Hon Hai will also deploy in Karnataka, Telangana and other states.
Since Hon Hai entered India in 2005, its revenue, number of employees, and investment scale have grown exponentially. At present, it is mainly engaged in the ICT final assembly business.
Going forward, Hon Hai will actively deploy work in the area of key components to raise its competitiveness in India.
Hon Hai will continue to implement the build-operate-localize (BOL) strategy in Southeast Asia, including in Vietnam, Thailand and Indonesia, to assist local partners to improve the supply chain and enhance indigenous competitiveness.
“We will also actively share global resources with these partners to expand the local market and share in the achievements,” he said.
Elaborating, Liu said that Hon Hai has been working in Saudi Arabia for many years through its BOL strategy.
Currently, the areas of 3+3 and ICT are being deployed to complement the goals of Vision 2030, the Kingdom’s transformative national development plan.
Liu also announced that Hon Hai has established a strategic partnership with Microsoft regarding low Earth orbit global satellite system.
The Group will aim to create a space Internet solution, under the three major applications of Internet of Vehicles, smart city and B5G communication infrastructure.
Liu said that the Group is currently discussing cooperation with more than 10 customers on 20 electric vehicle projects. Among them, production has started for 2, while contracts with 5 are likely to be signed.
Meanwhile, mass production in Taiwan for the family SUV MODEL C made by Foxtron Vehicle Technologies is on schedule for the fourth quarter of this year. Further developments in the EV area are expected to be provided on Hon Hai Tech Day on October 18.
The Group’s second quarter 2023 revenue totaled NT$1.3045 trillion, down 14% on year. Gross profit, at NT$83.6 billion, fell 14% at the same time; operating income was NT$30.9 billion, down 30%; while net profit fell 1% from a year ago to NT$33.0 billion. Both gross profit margin and net profit margin rose compared to a year ago, to a respective 6.41%, and 2.53% from a respective 6.40% and 2.21%. Fiinews.com
