Hon Hai Precision Industry Co (鴻海精密) chairman Young Liu(劉揚偉) on Thursday said that he expects the company’s revenue this year to exceed NT$6 trillion (US$200 billion), hitting a record high.
The iPhone assembler last year made NT$5.99 trillion, company data showed.
Liu’s comments were in line with the company’s revised revenue forecast of growth for this year, instead of a flattish performance that it projected three months earlier.
At present, Hon Hai is able to manufacture 60 percent of the components in a smartphone, Liu said, while noting a downturn in the mobile phone industry.
However, he expressed optimism about the emerging electric vehicle (EV) industry, saying it would surpass the mobile phone industry as a profit driver.
Liu also shared his views on ways to allow Hon Hai, which ranked 20th among the world’s top 500 companies in 2020 and is marking its 48th anniversary this year, to stay competitive over the next 50 years.
To that end, Hon Hai has identified the formula for moving in the direction of sustainability: creating stable net earnings per share (EPS) and assuming corporate social responsibility.
The company has also worked to upgrade the EV industry and has established the MIH Open Platform for the development of electric vehicles, Liu said.
Hon Hai’s goal is to ensure its electric vehicles account for 5 percent of the global market share by 2025, with sales of NT$1 trillion and annual shipments of 500,000 to 750,000 units.
The company has promoted a “3 plus 3” initiative to expand from its contract manufacturing business into hardware and software integration.
The development of EVs is central to the initiative, as it is building an EV supply chain, it said.
The “3 plus 3” initiative refers to three emerging industries — EVs, robots and digital healthcare — that are being developed through the applications of artificial intelligence, semiconductors and communications technologies.
By 2025, the combined market size of those three industries is expected to reach US$1.4 trillion, Liu said.
Liu made the remarks while addressing this year’s SAP NOW Taiwan, a conference organized by SAP Taiwan.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
PRESSURE EXPECTED: The appreciation of the NT dollar reflected expectations that Washington would press Taiwan to boost its currency against the US dollar, dealers said Taiwan’s export-oriented semiconductor and auto part manufacturers are expecting their margins to be affected by large foreign exchange losses as the New Taiwan dollar continued to appreciate sharply against the US dollar yesterday. Among major semiconductor manufacturers, ASE Technology Holding Co (日月光), the world’s largest integrated circuit (IC) packaging and testing services provider, said that whenever the NT dollar rises NT$1 against the greenback, its gross margin is cut by about 1.5 percent. The NT dollar traded as strong as NT$29.59 per US dollar before trimming gains to close NT$0.919, or 2.96 percent, higher at NT$30.145 yesterday in Taipei trading
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