Hon Hai Precision Industry Co (鴻海精密) has been focused on securing critical standard 5G patents to boost its competitiveness in the field, company chairman Liu Young-way (劉揚偉) said on Wednesday.
The company has also started research and development of 6G chips to stay ahead of the game in emerging technologies, Liu told a smart industry development forum in Taipei.
Hon Hai, the world’s largest contract electronics manufacturer, has secured 1,465 standard 5G patents so far, making it the ninth-largest standard 5G patent holder in the world.
Also known as Foxconn in the global market, the company envisions that 5G technologies would not only change people’s way of life, but also create tremendous business opportunities in the electronics sector, Liu said.
Since 2018, 5G technologies have been meeting the need for new communications applications in a growing global population, he said.
However, along with the introduction of new technologies, the global supply chain is becoming increasingly complicated, Liu said.
Against that backdrop, Hon Hai is working to expand its product portfolio with software, processors and computing devices for new communications technologies, he said.
The company’s new 5G technologies would include a wide range of applications, such as automotive electronics and smart production, Liu said.
In addition, Hon Hai and its telecom service subsidiary, Asia Pacific Telecom Co (亞太電信), are teaming up with Far EasTone Telecommunications Co (遠傳電信) to develop new communications technologies, including 6G applications and quantum computing, he said.
Quantum computing is expected to improve 5G base stations, while 6G chips are seen as vital to future communications, he said.
Asked about Taiwan’s exclusion from the recently signed Regional Comprehensive Economic Partnership (RCEP), Liu said it was unlikely to affect his company’s business.
Hon Hai has long been mapping out development strategies to extend its reach in the Asia-Pacific, and as the RCEP is a regional agreement, it is in line with the company’s vision, he said.
Commenting on Hon Hai’s share price, Liu said that the stock is undervalued, with a low price-to-book ratio and a price-to-earnings ratio that is lower than its peers, despite its promising future, he said.
The company has in the past few years expanded from hardware manufacturing only into software development to boost its profitability, he said.
In the initial phase of diversification, Hon Hai’s gross margin is expected to increase by 1 percentage point to 7 percent, and when the upgrade is completed, it is forecast to rise to 10 percent by 2025, Liu said.
Hon Hai shares yesterday closed 1.22 percent higher at NT$83 in Taipei trading, outpacing the TAIEX, which rose 0.78 percent to 13,845.66.
Since the beginning of the year, Hon Hai shares have dropped by 8.6 percent, while the broader market has gained about 15 percent.
From India to China to the US, automakers cannot make vehicles — not that no one wants any, but because a more than US$450 billion industry for semiconductors got blindsided. How did both sides end up here? Over the past two weeks, automakers across the world have bemoaned the shortage of chips. Germany’s Audi, owned by Volkswagen AG, would delay making some of its high-end vehicles because of what chief executive officer Markus Duesmann called a “massive” shortfall in an interview with the Financial Times. The firm has furloughed more than 10,000 workers and reined in production. That is a further blow
MOBILE SMART: The Dimensity 1200 is 22 percent better in terms of performance than its predecessor, and 25 percent more power-efficient, the handset chip designer said MediaTek Inc (聯發科) yesterday unveiled its premium 5G processors — the Dimensity 1200 and Dimensity 1100 — as it vies for a larger slice of the world’s rapidly growing 5G smartphone market. Manufactured using Taiwan Semiconductor Manufacturing Co’s (台積電) 6-nanometer process technology, the Dimensity 1200 processor performs 22 percent better than the previous generation Dimensity 1000+ processor, and is 25 percent more power-efficient, MediaTek said. Chinese smartphone brands Xiaomi Corp (小米) and Realme Mobile Telecommunications (Shenzhen) Co (銳爾覓移動通信) are to be the first adopters of the latest Dimensity chips, the companies said during a virtual media briefing. Xiaomi plans to equip its first
Answering to a reported request by Germany to help address a chip shortage in its auto industry, the Ministry of Economic Affairs (MOEA) yesterday said that it was in talks with domestic chip suppliers. Foreign media over the weekend reported that German Minister of Economic Affairs Peter Altmaier had sent a request to Taipei to ask Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to cooperate more closely with German automakers to provide microchips and sensors, to bridge a shortage that has emerged over the past few months. The MOEA said that it had not yet received the request and could therefore not elaborate
FOCUS ON FOUNDRIES: An analyst said that some investors would be disappointed because they were expecting a larger announcement of a partnership with TSMC Intel Corp’s incoming chief executive officer Pat Gelsinger on Thursday pledged to regain the company’s lead in chip manufacturing, countering growing calls from some investors to shed that part of its business. “I am confident that the majority of our 2023 products will be manufactured internally,” Gelsinger said. “At the same time, given the breadth of our portfolio, it’s likely that we will expand our use of external foundries for certain technologies and products.” He plans to provide more details after officially taking over the CEO role on Feb. 15, but Gelsinger was clear that Intel is sticking with its once mighty