Tue, Nov 28, 2006 - Page 12 News List

Hon Hai looks to eSys for Taiwan push

EXTENDED PARTNERSHIP After successfully promoting Hon Hai's Foxconn brand abroad, the companies are extending their cooperation into the domestic market


Hon Hai Precision Industry Co global marketing manager Christin Wang, left, and eSys Technologies country manager for Taiwan Vincent Chang yesterday present Hon Hai's Foxconn series of computer connectors at a press conference after announcing that the two companies would be extending their partnership to Taiwan.


Hon Hai Precision Industry Co (鴻海精密), one of the world's largest electronics manufacturing service companies, yesterday said that it would extend its partnership with electronics retail chain eSys Technologies Ptd Ltd (金喜來) to promote its nascent brand-name components in the local market.

The collaboration with the Singaporean electronics retailer is part of Hon Hai's broader plan to tap into the rapidly expanding Asia-Pacific market, the company said.

"We are aggressively deploying channels to sell our products in fast-growing emerging markets after making encouraging progress in China and Europe this year," Christin Wang (王文玉), a global marketing manager of Hon Hai's brand business, told reporters.

Shipments to China and Europe have grown more than two-fold to date this year from a low base in the same period last year, Wang said, without offering further details.

Two years ago, Hon Hai started selling computer connectors and coolers under the Foxconn brand in the overseas clone market -- where tech-savvy consumers go for customized computers -- after supplying electronics components to well-known companies such as computer vendor Dell Inc for years.

"The Asia-Pacific markets, including Taiwan, Eastern Europe and South America, will be our focus next year," Wang said. "We hope to expand our business by working with local distributors."

That would bring the battle between Hon Hai and Asustek Computer Inc (華碩), the world's biggest motherboard maker, in the original electronics manufacturing (OEM) area to the branded business in the domestic market.

"We will not sell low-priced products as profits are already slim in Taiwan's saturated motherboard market," Wang said, adding that Foxconn would follow Asustek in pricing strategy.

To increase the exposure of Foxconn products, Hon Hai said it chose eSys Technologies to sell Foxconn motherboards and other components in Taiwan. The company sells Hon Hai's own-brand products in Australia, South Korea and Vietnam.

"We hope to grab a 20 percent to 25 percent share of Taiwan's motherboard market for Foxconn in the next 12 months," said Vincent Chang (張朝龍), country manager of eSys Technologies' Taiwan branch.

ESys Technologies has 24 outlets nationwide.

To support the budding business here, Hon Hai is seeking more retailers, Wang said. In addition to eSys Technologies, Weblink International Inc, a wholly owned electronics retailer of computer vendor Acer Inc, is selling electronic components bearing the Foxconn name in Taiwan.

Hon Hai said earlier this year that it had set a global sales target of more than 10 million motherboards, up 30 percent from 8 million motherboards last year.

"We feel we are on track to hit the goal," Wang said.

Hon Hai's shares rose 1.1 percent to NT$239 yesterday on the Taiwan Stock Exchange.

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