Hon Hai to build new au­to­ma­tion cen­ter in China


As Hon Hai Pre­ci­sion In­dus­try Co. ( ) dives fur­ther into the au­to­ma­tion in­dus­try, its con­struc­tion of a new R&D cen­ter in China’s An­hui Province will break ground be­fore mid-Oc­to­ber, ac­cord­ing to a Chi­nese media out­let.

The R&D cen­ter’s de­sign blue­prints have been ap­proved by the main­land Chi­nese author­i­ties, and all the pa­per­work is ex­pected to be com­pleted by the end of Septem­ber. Con­struc­tion is set to be fin­ished by March 2016.

Hon Hai is po­si­tion­ing it­self for the new­est In­dus­try 4.0 and Bei­jing’s “Made in China 2025” grand scheme.

The com­pany wants to make head­way into mold au­to­ma­tion and cloud ap­pli­ca­tions that are needed in the next gen­er­a­tion In­ter­net of Things and smart cars.

Mar­ket an­a­lysts said the con­tract man­u­fac­turer started in­vest­ing in nu­mer­i­cal con­trol tech­nol­ogy and pre­ci­sion ma­chin­ery last Novem­ber, ac­tively mak­ing in­roads into au­to­ma­tion-re­lated crit­i­cal parts and com­po­nents.

Hon Hai is al­ready car­ry­ing out mass pro­duc­tion on three types of ma­chine tools, churn­ing out a to­tal out­put worth 310 mil­lion Chi­nese yuan in the first half of 2015. The com­pany ex­pects to reach its an­nual pro­duc­tion tar­get be­fore the end of Oc­to­ber.

Also, Hon Hail’s re­search on its pre­ci­sion ser­vo­mo­tor, its in­jec­tion­mold­ing ma­chine and mill-turn ma­chine tools has been suc­cess­ful. Mass pro­duc­tion may soon be­gin.

Hon Hai Makes US$200 mil­lion

In­vest­ment in In­dia

Hon Hai is also ac­tive in its in- vest­ment en­deavor in In­dia. Its sub­sidiary FIH Mo­bile Lim­ited yesterday an­nounced its plan to pur­chase US$200 mil­lion worth of shares in In­dian com­pany Snapdeal. The trans­ac­tion will give FIH a 4.27-per­cent stake in the com­pany.

The deal will give FIH Mo­bile an op­por­tu­nity to trans­form end-to-end in­for­ma­tion and mo­bile In­ter­net ap­pli­ca­tions, the com­pany said.

Through the trans­ac­tion, Hon Hail will also beef up its in­fra­struc­ture sys­tem via its greater ac­cess to the In­ter­net of Things tech­nol­ogy.

The in­vest­ment will help FIH re­al­ize its “Dig­i­tal In­dia” vi­sion and es­tab­lish closer ties with lo­cal cus­tomers, said FIH Chair­man Vin­cent Tong ( ).

Snapdeal’s online plat­form will aid FIH’s mo­bile de­vice online sales, de­liv­ery and pro­mo­tion, Tong added.

This ven­ture is part of FIH’s plan to use Big Data to cre­ate smart pro­duc­tion sys­tems, de­velop new prod­ucts and pro­vide so­lu­tions for its cus­tomers, Tong said.

Hon Hai has set the goal of es­tab­lish­ing 10 to 12 man­u­fac­tur­ing fa­cil­i­ties in In­dia by 2020. It in­tends to wade into the fields of online ser­vices, mo­bile In­ter­net of Things, e-com­merce and re­new­able energy with part­ners in In­dia.

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