Tue, Aug 21, 2018 - Page 1 News List

Payout to make Hon Hai boss NT$3.24bn richer

FOXCONN BOSS:Terry Gou, who has about 1.62 billion Hon Hai shares, has in the past few years donated his gains from annual cash dividends to cancer research

Staff writer, with CNA

Hon Hai Precision Industry Co (鴻海精密) chairman Terry Gou (郭台銘) is expected to receive NT$3.24 billion (US$105.3 million) after the company issues cash dividends to its shareholders later this week.

The world’s largest contract electronics maker is on Friday to distribute a cash dividend of NT$2 per share based on last year’s earnings per share of NT$8.01.

Gou owns about 1.62 billion Hon Hai shares.

The company is also planning to cut its paid-in capital by NT$34.66 billion, or about 20 percent, to NT$138.63 billion.

The capital reduction is expected to be completed in October, when shareholders would collect NT$2 per share, and Gou would receive an additional NT$3.24 billion.

Market watchers are waiting to see how Gou will dispense the windfall. He has in the past few years donated his earnings from cash dividends to cancer research.

Local Chinese-language media late last week reported that Hon Hai, known as Foxconn Technology Group (富士康科技集團) outside of Taiwan, has signed an agreement with the Zhuhai City Government to build a chip fabrication plant in China’s Pearl River Delta area.

Hon Hai, an assembler of Apple Inc’s iPhones, is to team up with the city authorities to work on integrated circuit design and other semiconductor services, reports said.

The company aims to transform itself from a contract electronics maker by extending its reach to software development in emerging technologies such as the Internet of Things and artificial intelligence, the reports said.

Having set its sights on growing demand for chips from these new technologies, Hon Hai would build the Zhuhai semiconductor hub at a time when China is intensifying its efforts to cultivate its own semiconductor industry to reduce dependence on imports, they said.

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