Hon Hai Precision Industry Co (鴻海), Apple Inc’s largest iPhone assembler, has mapped out a five-year plan to drive growth for the company, chairman Young Liu (劉揚偉) told shareholders at an annual general meeting in New Taipei City yesterday.
Highlighting a three-step plan revolving around digital transformation, Liu said the company is focused on developing three core technologies: artificial intelligence, semiconductors and new-generation communication.
“To improve our profit margin, we have set our sights on three new industries: electric vehicles, digital healthcare and robotics,” Liu said.
Photo: Reuters / Ann Wang
Upon succeeding Hon Hai founder Terry Gou (郭台銘) as chairman last year, Liu has vowed to increase the company’s gross margin from about 6 percent to 10 percent within five years.
“With a compound annual growth rate of more than 20 percent ... output value from these industries are estimated to reach US$1.4 trillion by 2025,” Liu said, expressing the hope to claim up to 10 percent of market share.
Pointing to saturation in the information and communications technology industry, Liu said that the company would see little growth if it focuses only on its main assembling business.
Photo: Bloomberg / Ashley Pon
Heavily reliant on Apple’s orders of iPhones, which are mostly still assembled at its China plants, Hon Hai has witnessed an 89.49 percent drop in net profit for last quarter due to the COVID-19 pandemic.
The company has trimmed its outlook for this year following a dampened smartphone market.
Liu said Hon Hai is cutting down on management and operational costs to recover from losses.
Hon Hai’s shareholders approved a plan to distribute a cash dividend of NT$4.2 per common share.
Liu said that the company would hold a technology forum in about October to showcase new developments by the company’s research institute, which comprises five centers specializing in artificial intelligence, semiconductors, next-generation communications, cybersecurity and quantum computing.
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Taiwanese prosecutors suspect that three people successfully smuggled at least one shipment of Nvidia Corp artificial intelligence (AI) chips to China after first exporting them to Japan, people familiar with the matter said. The trio was detained last week by the Keelung District Prosecutors’ Office for allegedly falsifying documents related to exports of Super Micro Computer Inc servers containing advanced Nvidia chips, which the US has barred from sale to China without a license from Washington. The move marked Taiwan’s first public crackdown on AI chip diversion after years of pressure from the US to take a more active role in curtailing
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) employee bonuses are likely to grow more than 30 percent this year, in line with the past few years as the company’s profits continue to set new records, an anonymous source cited TSMC chairman C.C. Wei (魏哲家) as saying yesterday. TSMC, the world’s largest contract chipmaker, is committed to taking care of its workers, the source said, citing Wei’s meeting with employees yesterday morning. Wei also expressed gratitude to employees for their contribution to the company’s improving bottom line, the source added. Since 2023, TSMC’s employee bonuses have grown at an annual rate of
RSS