Hon Hai Announces Multimillion U.S. Dollar Investment Plan in Pennsylvania

The Hon Hai Group Chairman Terry Gou recently announced the group will invest US$40 million over the next two years in R&D, automation, and expansion in Pennsylvania as the group's first step into the U.S.'s high-end manufacturing industries.

The investment shows the group's support for US President Barack Obama's Advanced Manufacturing Partnership (AMP) initiative, a national effort bringing together industry, universities, and the federal government to invest in the emerging technologies and skills that will support a dynamic domestic advanced manufacturing sector that creates high quality jobs and encourages companies to invest in the United States.

Originally, the group's PA investment plan was thought to serve Apple, one of the group's foremost customers. However, Gou denied the speculations, stressing the investment aims at high-challenging, high-tech and high value-added manufacturing industries in the States.

He pointed out that high value added manufacturing industries extend beyond 3C (computer, communications, and consumer electronics) manufacturing to other sectors, such as pharmaceuticals, automobiles, and environmental-protection. Producing these products in the States can make these products affordable to U.S. consumers.

Gou said the group would invest US$30 million over two years in the group's Eastern U.S. branch in Harrisburg, Pennsylvania. The branch will offer 500 jobs and expand its R&D team to form a complete high-end manufacturing chain.

The branch will also work with the nearby Carnegie Mellon University on robot projects to tap the university's expertise in this field.

Industry executives estimated the investment will help the group to expand sales to the U.S. (KL)