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Hon Hai Chairman Announces Steady Investment in Smart Manufacturing with Connected Robots

2015/05/30 | By Ken Liu

In a letter to shareholders, the Hon Hai Group Chairman Terry Guo confirms that the world's No.1 contract electronic manufacturer will continue investing in the development of the integration of robots with cloud computing, mobile communications, Big Data, Internet of Things (IoT) and smart networking technologies as well as quicken its migration into the market.

While the letter had been publicized before the 4-day Big Data Expo 2015 was unveiled on May 26 in Guiyang, mainland China, Guo attended a CEO summit on the sideline of the show, along with Chairman Ma Huateng of Internet content provider Tencent Inc., Chairman Jack Ma of the e-commerce operator Alibaba Group, Founder Lei Jun of smartphone maker Xiaomi Inc., Chairman Robin Li of Internet operator Baidu Inc., Chairman Sun Pishu of computing platforms and IT application solutions provider Inspur Group Co., Ltd., and President Karim Temsaman of Google APAC operations.

Guo points out that integrating Internet-based technologies with smart robots to boost production efficiency is a rising trend, and that his group is on the path to become a total solution provider by tapping advantages of the integration of cloud computing, mobile device, IoT, Big Data, smart life, smart-work network with smart robots to supply software integrated with information-technology hardware.

Hon Hai's cloud computing and IoT deals so far include an investment in a cloud computing industrial park in Guiyang for NT$1.1 billion (US$35.48 million), and agreements each with 21ViaNet Group and the Alibaba Group, the Guiyang City Government and the Guizhou Provincial Government to co-develop cloud applications in the province.

Hon Hai's significant Big Data projects include the investment in a Big Data center in Guiyang and the investment in Global Big Data Exchange (GBDEx), mainland China's first big data exchange which is capitalized at RMB50 million (US$8.06 million). Hon Hai's Foxconn Technology Group holds 21.5 percent stake in the exchange for around RMB10.75 million (US$1.73 million), being one of the exchange's five co-founders.

Guo notes that the global tech industry is undergoing a major structural shift to revamp technological nature and business models due to globalized competition that has transcended national boundaries. He says in the face of ever changing competitive environment, his group aims to create higher added-value by strengthening its capability in integrating hardware technologies with software technologies. To achieve such end, his group will continuously strengthen its R&D capability and maintain mergers and acquisitions.

Although the group's earnings set record high last year amid a lukewarm global economy, Guo feels this year the group will have to cope with many formidable challenge in consideration of several uncertainties, including fluctuating fuel prices, Europe's deflationary risk, and speculations that the U.S. Fed is likely to raise interest rate this year.