Hon Hai Precision Industry Co (鴻海精密) yesterday said that its shareholders had approved a proposal to distribute a cash dividend of NT$4 per common share, the highest in 20 years.
The iPhone maker also said it was upbeat about its prospects for the second half of the year.
“The global parts supply shortage is of limited impact for us now,” Hon Hai chairman Young Liu (劉揚偉) said at the company’s annual general meeting in New Taipei City’s Tucheng District (土城). “I am optimistic about the rest of the year.”
Photo: screen grab from the Internet
The company expects minimal impact from the floods in China’s Zhengzhou City, where it has key production facilities, Liu added.
The Zhengzhou facilities in Henan Province supply the bulk of the company’s iPhone manufacturing capacity, but they have been spared from the floods, Hon Hai said.
“All our iPhone facilities remain fully functional,” although due to the severity of the floods, it has affected staff getting to and from work, the company said.
“Reports of a flooded Hon Hai facility is a small desktop component [operation] outside the main industrial park,” he added.
Liu also issued a statement touting Hon Hai’s efforts to grow its electric vehicle (EV) business, emphasizing the importance of forming a complete and collaborative supply chain with other companies through the MIH — Mobility in Harmony — alliance.
The alliance, which became an independent non-profit entity this month, now boasts 1,800 supply chain members and hopes to become “the Android of EVs” — an open standard to facilitate cooperation between suppliers.
Liu said that regional production is a “growing trend” and that it is inevitable that Hon Hai would create self-sufficient supply chains globally.
“We will take our experience of integrating vertically in China and working with various suppliers and replicate it all over the world,” Liu said.
Although Hon Hai is best known as the world’s largest contract electronics maker and a leading assembler of Apple products, Liu said he is looking forward to the EV business making a contribution.
“We will first see some results from key EV component sales, with whole vehicle sales starting from the fourth quarter of 2023,” Liu said.
“By 2025, we hope that 10 percent of EVs will contain some Hon Hai components,” he said.
Hon Hai’s EV line will start with electric buses, sedans and scooters, and the company will “continue to seek opportunities for collaboration around the world,” he said.
US crude futures on Friday topped US$80 a barrel for the first time since November 2014 as a global energy crisis boosts demand at a time when OPEC+ producers are keeping supplies tight. West Texas Intermediate (WTI) for November delivery popped above the key psychological level before pulling back and closing up 1.34 percent at US$79.35 a barrel, gaining 4.57 percent from a week earlier. Brent crude for December delivery increased 0.54 percent a barrel to US$82.39, up 3.92 percent from a week earlier. This week brought many indications that supplies would remain constrained: Saudi Aramco said a global natural gas shortage was
Units of Intel Corp and Samsung Electronics Co are targeting to resume full operations of their Ho Chi Minh City plants by the end of next month, a move that could provide relief to global supply chains. Saigon Hi-Tech Park is helping its tenants, many of which are running at about 70 percent capacity, to operate fully next month, park deputy manager Le Bich Loan said in a phone interview. She did not elaborate on the steps the park is taking, particularly efforts at bringing back workers who fled to home provinces. The Ho Chi Minh City unit of Nidec Sankyo Corp,
CHIP CRUNCH: Apple’s woes show that even the king of the technology world is not immune from global shortages made worse by the COVID-19 pandemic Apple Inc is likely to slash its projected iPhone 13 production targets for this year by as many as 10 million units as prolonged chip shortages hit its flagship product, people with knowledge of the matter said. The company had expected to produce 90 million new iPhone models in the final three months of this year, but it is now telling manufacturing partners that the total would be lower because Broadcom Inc and Texas Instruments Inc are struggling to deliver enough components, the people said. Apple gets display parts from Texas Instruments, while Broadcom is its longtime supplier of wireless components. One Texas
Down a dusty farm track in Chilean wine country, behind a wooden gate wrapped in chains, forestry experts are nursing a plantation of saplings whose bark holds the promise of potent vaccines. Quillay trees, technically known as Quillaja saponaria, are rare evergreens native to Chile that have long been used by the indigenous Mapuche people to make soap and medicine. In the past few years, they have also been used to make a highly successful vaccine against shingles and the world’s first malaria vaccine, as well as foaming agents for products in the food, beverage and mining industries. Now two saponin molecules,