Hon Hai Group, Philos Group Allies on TNHT Technology

Taipei, Mar. 30, 2011 (CENS)--The Taiwan-based Hon Hai Group, the world's largest electronic manufacturer, has cooperated with U.S.'s Philos Group on TNHT (Titanium Nitride Heat Treatment) technology. The cooperation is inductive to Hon Hai's long-term profit growth, according to market observers.

Hon Hai Group is reportedly to lease part of Foxconn Technology's factory space in Shenzhen, southeastern China, to Philos Group and pay all electricity bills for the factory. In exchange, Philos Group will pour US$10 billion into installation of required machinery to handle TNHT process in the factory for Hon Hai Group.

In fact, Philos Group has been allied with Foxconn Technology since this January, with the former providing TNHT technical support to process all products the latter produces. So far, the cooperation model has proven helpful for Foxconn Technology to boost yield rates and cut manufacturing costs.

Philos Group's cutting-edge, patented TNHT technology is mainly applied onto production of metal parts of automotives, aerospace crafts and semiconductors and related machinery for enhanced production efficiency and surface resistance against wear. With its client list including more than 70% of U.S.'s top 500 enterprises, the firm operates its own factories in six of American states now.

Surely, the strengthened cooperative tie between Hon Hai and Philos will create more mutual benefits in the future, stressed market observers.

Noteworthily, Hon Hai Precision Industry Co., Ltd., the largest supplier for Apple Inc., is very likely to embrace a rosy year in 2011, when Apple's iPad 2G and iPhone 5 go on sale in the global market. The firm has kicked off volume production for iPad 2G since mid-February and is expected to ship over 4 million units throughout the first quarter of this year, securing a strong growth drive in its revenue for the first half of the year.

Also, some institutional investors have projected Hon Hai's profits to shoot up starting in the second quarter of the year.