Hon Hai Invests US$375 M. in Electronic Parts in China

Taipei, Nov. 2, 2012 (CENS)--To expand presence of electronic parts and components manufacturing in China, Hon Hai Group, the world's largest EMS (electronic manufacturing service) provider headquartered in Taiwan, recently announced investments there totaling NT$11 billion (US$375 million).

Hon Hai will invest US$38 million in Hong Fu Jin Precision Industry (Hengyang) Co., Ltd., which specializes in precision molding and metal/non-metal molded parts and components.

Other investments include US$275 million and US$26 million in Fu Tai Hua Precision Electronics Co., Ltd. in Jiyuan, in Henan Province, and Xin Cheng Technology Co., Ltd., in Chengdu, respectively; the former mainly a maker of parts for mobile phones, and the latter a maker of materials for panel and thin film transistor-liquid crystal display (TFT-LCD) panels, as well as about US$36 million in Xin Cheng Technology Co., Ltd. in Shenzhen.

Such investments in China also help Hon Hai to upgrade competitiveness and integrate supply chain of 3C (computer, communication, and consumer electronic) products.

Moreover, the firm recently announced to float unsecured corporate bonds not exceeding NT$18 billion (US$600 million) to replenish operating capital and repay short-term debts.

To build sales channel for software products and its BOT Taipei IT park, dubbed “Cyber Plaza” or “Akihabara in Taipei,” Hon Hai acquired the common-stock of Syntrend Creative Co., Ltd., an affiliate of Hon Hai Group, bringing cumulative investment to exceed US$642 million.