Terry Guo: No second tier for Hon Hai

Hon Hai Chairman Terry Gou said Saturday that the group of companies will never allow itself to become a second-tier manufacturer. In a speech to attendees at a ceremony for the group’s Love Happy Carnival Charity at National Taiwan University, Guo said Hon Hai will train young talent in the skills needed to carry out the highest level of structural design in production and assembly in the future.

Gou promised that Hon Hai will work with its employees to transition to the future. He cautioned that it will not be easy, but pledged that he and the company’s employees are committed to work and will never settle for second best. He said the company will find and nurture everyone from assembly workers and technicians to managers involved in planning and development to design and execute the highest level of products and designs.

Gou disclosed that the company has been working with BlackBerry on smartphone products that will be shown in a telecommunications exhibition in Barcelona in February.

Guo added that Hon Hai is cooperating with the largest names in the market on patent development. He said this includes advances in nanotechnology, e-commerce and cloud-based business operations. Hon Hai currently accounts for 60 percent of the global production of servers and during the coming year will continue to design, develop and manufacture new server products for the cloud market.

Guo pointed out that Hon Hai is presently the world’s second largest foundry for smartphone products and the largest for tablet PC products. He said he has invited representatives from leading cloud network and robotics developers to Taiwan to discuss the future of the cloud network and potential products that tie cloud computing and robots.
In biomedicine, Guo referred to systems being implemented at NTU Hospital and its Cancer Center. These systems involve paperless operations together with eight screens and tie-ins to cloud architecture that present a view into the future of medicine and diagnosis and treatment for challenging diseases.

Guo noted that Hon Hai Group is the largest private enterprise in China and also has 24,000 employees in Mexico. After five years of operations in the Czech Republic, Hon Hai is now that country’s second-largest exporting company. In addition, Hon Hai has invested heavily in other nations in the EU as well as Brazil and is now turning its attention to Indonesia.

Gou touched on Hon Hai’s 40-year history, noting that it has grown steadily from a small company of only 30 people with a yearly turnover of less than NT$3 million. The company has worked its way to the present, growing along with industry and moving from design and manufacture of machinery and molds into the PC era and today’s rapidly expanding telecoms market. Gou said in the past ten years the group has gone from NT$1 trillion to NT$4 trillion in sales and has no plans to slow down.

As for the next ten years, Gou foresees reorganization into 12 key units that will work together to grow along with the rest of the world. Hon Hai will also vertically integrate in its Taiwan operations in Taipei, New Taipei, Hsinchu, Miaoli, Taichung and Kaohsiung as well as other R&D centers and bases.

Gou said the group will make further inroads into areas such as computer networks, hospitals, schools, transportation and other applications. Hon Hai will also focus its attention on energy, environmental protection, automation, biomedical engineering and cloud network services in moving into the next generation in intelligent life networks.

Gou said the future is bright and sunny, and many opportunities lie ahead in the next decade. At the same time, he noted, Hon Hai can never forget its roots, knowing that the driving force behind the company’s success is a cohesive group of employees who have worked hard for the company and for the public.