Hon Hai to target AI and big data
• Chairman aims to transform the iPhone assembler into tech powerhouse
Hon Hai Precision Industry chairman Terry Gou, best known for assembling Apple’s iPhones, plans to increase focus on artificial intelligence (AI) and big data over the next few years as he seeks to transform the contract manufacturer into a more influential force in the global technology industry.
At an annual gathering in Taipei for employees and their family members, Gou said the company had a great deal of work to do through 2020 to adapt to the sector’s new realities. He will expand investments in AI, automation and the Internet of Things (IoT) to position his firms even more centrally in the tech supply chain.
The comments came a day after a Hon Hai unit, Foxconn Industrial Internet, said it expects to spend 27.3-billion yuan on next-generation projects and hold an initial public offering in China. Those efforts will include cloud computing, IoT solutions, AI manufacturing and fifth-generation wireless technologies, the firm said in an application prospectus on the China Securities Regulatory Commission website. Hon Hai is moving into sectors beyond pure electronics assembly as growth in the global smartphone industry sputters.
“There will be a big amount of work to do in the next three years because as the world runs faster thanks to the internet economy, the old successful rules can be overturned,” Gou said before an audience of more than 10,000 at a Taiwan exhibition centre.
“If we don’t keep moving forward we will be eliminated.” Gou and his Taiwanese company must strike a delicate balance between China and the US. Most of Hon Hai’s facilities are in mainland China where the company depends on solid relationships with government officials. Foxconn Industrial Internet is the first Hon Hai unit to list on a domestic exchange.
At the same time, Gou has met with US President Donald Trump and agreed to build a $10bn display factory in Wisconsin. In July the state’s governor and Gou signed a memorandum of understanding that calls for up to $3bn in government assistance and the sale of at least 400ha.
Hon Hai’s yearly gathering is a chance for Gou to speak about his priorities to employees and the media. This year he put an emphasis on how the com-pany will manage technology trends touching virtually all corners of the industry.
“In the last year, we made preparations for the next transformation of the company,” the chairman said.
“In the next three years, from 2018 to 2020, we will solidify our plans as the company moves towards the industrial internet, big data, artificial intelligence and platform economy.”
Hon Hai and its affiliates took control of cash-strapped Japanese display maker Sharp in 2016 and pledged to revive the 100-year-old brand. The company has reported five straight quarters of net income and is expanding into new technologies such as high-resolution televisions known as 8K, which the company says display images 16 times the resolution of high-definition TVs.
Sharp president Tai Jeng-Wu said Japan was entering the 8K era and demand would rise with more content.