Sat, Jun 01, 2013 - Page 13 News List

Hon Hai establishes R&D firm, signs MOU overseas

APPLICATION:A company statement said Hon Hai will use the technologies developed in the Japanese R&D center in consumer electronics and medical devices

By Lisa Wang  /  Staff reporter, with CNA

Hon Hai Precision Industry Co (鴻海精密), the world’s biggest contract electronics maker, yesterday said it had established a research and development (R&D) company in Japan to develop advanced displays and touch screen technologies.

The new technologies will be used for electronics such as handsets and tablets, as the company expands its business to displays and cloud computing.

“The research center will become a strategic part of Hon Hai’s plans to develop display and cloud applications,” the company said in a statement.

Foxconn Japan RD Co Ltd will have operations in Sakai, Osaka and Yokohama in the initial stage, Hon Hai said in the statement.

PURPOSE

The technologies developed by the R&D company will be used in consumer electronics, commercial products and medical devices, the statement said.

Hon Hai did not disclose how much it has invested in the R&D company.

The Taiwanese firm also operates one R&D center in Taiwan and another in China.

It will integrate resources in these two R&D centers with Foxconn Japan RD, hoping the R&D company to help strengthen Hon Hai’s designing and manufacturing, the statement said.

Separately, a leading Indonesian cell phone distributor and retailer said it signed a deal to set up a partnership with Hon Hai in Indonesia, an Indonesian newspaper said on Thursday.

MOU

The Jakarta Globe cited Erajaya Swasembada president and director Badiarto Halim as saying that the company had reached an agreement with the Taiwanese company.

“We have signed a memorandum of understanding (MOU) to be Foxconn’s local partner,” Badiarto was quoted as saying.

The form of the partnership, the financial structure of the deal and the feasibility of future plans are still being discussed, the paper said.

Erajaya, which the paper described as the top handset retailer in Indonesia with a 30 percent share, can bring its expertise in distribution and retailing to the partnership, while Hon Hai would likely be responsible for manufacturing, Badiarto said.

INVESTMENT

Hon Hai has announced plans to invest US$10 billion in Indonesia over the next five years to set up a manufacturing base there and supply electronic devices to the country’s rapidly growing consumer market.

The company had originally planned to sign a MOU with the Indonesian government on investment, covering investment incentives and conditions in the middle of last month, but a Hon Hai source said details are still being worked out.

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.

Hon Hai shares slid 0.65 percent to NT$76.7 yesterday, underperforming the TAIEX, which gained 0.14 percent.

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