Wed, Jun 05, 2013 - Page 14 News List

This year key in diversification efforts: Hon Hai

TRANSITION PERIOD:The firm said it would continue the move into software it began with last year’s cloud computing center to create synergies

Staff writer, with CNA

Hon Hai Precision Industry Co (鴻海) said yesterday that this year is a key period for the company to extend its reach from manufacturing to software services.

In a report for shareholders, Hon Hai, which assembles iPads and iPhones for Apple Inc, said the company would continue to pour funds into software development with the aim of diversifying from a hardware supplier into a technology services provider.

In August last year, a cloud-technology center planned by Hon Hai broke ground in the Kaohsiung Software Technology Park with an investment of about NT$1.9 billion (US$63.33 million) to construct a building for software development and another as a cloud-based data center.

Hon Hai has expressed optimism about its efforts to enter the software business, saying that the integration of software and hardware development will create greater benefits for its customers.

The company told shareholders that it has faith that the company will be able to create higher returns for shareholders, even though the global economy is facing uncertainty.

Last year, Hon Hai posted record highs in sales and net profits, with consolidated sales rising 13.11 percent from a year earlier to NT$3.91 trillion and net profits growing 16.14 percent to NT$94.76 billion.

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