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Gou says big adjustment for Hon Hai Precision

 During the shareholder's meeting, CEO Terry Gou said the Hon Hai Precision will undergo big adjustment, which some business units will be retained while other subsidiaries will go its own. Gou quoted saying and warned the state of the global economy does not leave much room for optimism, saying the economic recovery in the US is not solid and that China's economy remains weak.
 
  Hon Hai Precision will retain six core businesses including the precision machinery, optics, material technology, cloud computing, network and automation R&D. Moreover, Foxconn will be divided into five to ten new companies, in which Gou believed new companies will earn more money than current situation.
 
  Gou mentioned that there are 20,000 robots installed in Foxconn as the wages in China are rising. Gou said: "We will add one million robots and our human workers will become technicians and engineers." Humans are still further superior in assembling complex and delicate wiring and components than robots. There are close to 1.2 million workers at Foxconn production facilities in China.
 
  Outside China, Hon Hai Precision is eying on Indonesia and Brazil. Last year, Hon Hai did announced to pour US$482 million worth of investment to Brazil, which it's subsidiary Foxconn CMMSG Industria de Electronicos Ltda bought a piece of land, measuring 1.42 million-square-meter from Toulouse Incorporacao SPE LTDA., which will produce smartphones, tablets and other electronic devices.
 
  In April, Hon Hai Precision has signed a memorandum of understanding (MOU) with Indonesian government, worth of US$10 billion over next five years. Indonesian Minister of Industry Mohamad Hidayat said recently that Hon Hai plans to build a 500-hectare factory to produce cell phones, tablet computers and other electronic products, which intent to supply electronic devices to the rapid growing consumer market in Indonesia.
 

Publish Date :2013/07/05