Hon Hai Precision Industry Co (鴻海精密) has made its first financial commitment for a planned flat-panel plant in Wisconsin, the Milwaukee Journal Sentinel reported.
Hon Hai, known as Foxconn Technology Group (富士康) outside of Taiwan, on Friday deposited US$60 million to special bank accounts in Wisconsin, which Mount Pleasant Village President Dave DeGroot described as a “significant milestone that should be marked and celebrated,” the paper said.
The money is to be used by the village and Racine County to buy land for the US$10 billion state-of-the-art flat-panel plant, whose construction is to begin next month, it said.
Hon Hai chairman Terry Gou (郭台銘) last month signed an agreement with the Wisconsin Economic Development Corp (WEDC) to build the plant in the state.
Hon Hai, the world’s largest contract electronics maker, has also leased a building for assembly purposes while the factory is under construction, the paper said.
Hon Hai has drawn criticism due to announced projects that did not fully materialize, it said.
However, Friday’s deposit represents a concrete “commitment of a significant amount of money to the project,” the paper added.
The iPhone assembler is to build a 5G technology ecosystem in a complex covering 486 hectares in southeastern Wisconsin to manufacture ultra-high-definition 8K panels.
The project is expected to create about 3,000 jobs in its initial stage and boost the number of new jobs to 13,000 over the following six years.
The jobs will have an estimated average annual salary of US$53,875, the company has said.
Before last month’s agreement, Wisconsin had granted Hon Hai US$3 billion in tax incentives to draw the project to the state, the largest package of subsidies ever given to a foreign company by a US state, according to US media.
In related news, Hon Hai yesterday said it will spend a total of 740.39 million yuan (US$113.19 million) to purchase two plots of land in the Zhengzhou Airport Economy Zone (鄭州航空港區) in China.
The plots cover 176,888m2 and 72,305m2, and their acquisition is part of the firm’s strategy to meet its operational needs, Hon Hai said in two filings with the Taiwan Stock Exchange.
Zhengzhou is Hon Hai’s main manufacturing hub for making Apple Inc’s iPhones.
Additional reporting by Lauly Li
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president