Kaohsiung Mayor Chen Chu (陳菊) confirmed yesterday that the Hon Hai Group (鴻海集團) will sign a letter of intent to invest in the city through the Export Processing Zone Administration tomorrow.
Chen told reporters yesterday morning that she had received an invitation to a ceremony marking the development that will be held at the Kaohsiung Software Park in Cianjhen District (前鎮).
She welcomed the company’s decision and said she would ask for leave from a Kaohsiung City Council question-and-answer session so that she could attend the function.
The city government had been upbeat after Hon Hai chairman Terry Gou (郭台銘) told reporters after a meeting with President Ma Ying-jeou (馬英九) on April 7 that he “believed [the company] will soon take action” on Ma’s proposal that it invest in Kaohsiung.
Gou said at the time that Ma had expressed the hope that Hon Hai would invest in Kaohsiung’s software industry and see progress on the matter before he took office on May 20.
“I don’t know if this was an order or an expectation, but this is something I’d love to do,” Gou said, adding that Kaohsiung could be transformed into a digital content creation center in Asia.
Ma also expressed the hope that Hon Hai would ship its products made in Vietnam for export to the US via Kaohsiung Harbor to reduce the time and cost involved in transshipment via Singapore or Hong Kong, Gou said, adding that he had told Ma it would be done.
Kaohsiung’s Economic Affairs Bureau said yesterday that it had briefed Hon Hai on several occasions, but was unsure of which industrial venture or ventures the group would invest in.
There was no word whether it would purchase ready-to-use factory buildings in the Software Park or buy land to build its own research center, city officials responsible for urban development said.
The company said that it would hire around 3,000 workers in Kaohsiung and build housing for its workers as well, they said.
Meanwhile, Chen said that while she wanted to see more investment in the city, she was not in favor of real estate deals aimed at turning quick profits.
Her remarks followed a report that the executive director of the Chinese-language monthly Wealth Magazine was organizing a trip to Kaohsiung for a group of wealthy Taiwanese entrepreneurs this week to explore business opportunities. The entrepreneurs were reportedly planning to invest NT$3 billion (US$99.3 million) in real estate in Kaohsiung.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be