Is Hon Hai Precision Group, ranked 112th among the world's top 500 companies, a Chinese company?

Founded in 1974, Hon Hai, under the leadership of Chairman Mr. Terry Gou, with a forward-looking vision, created its own mechanical-optical vertically integrated "eCMMS" business model that subverted the field of electronic foundry services; providing customers with From joint design (JDSM), joint development (JDVM) to global logistics and after-sales service, it is the world's most competitive one-stop total solution.

Company name: Hon Hai Precision Group

Foreign name: Hon Hai Precision Industry

Established: 1974

Business scope: Computers, network communications, consumer electronics, etc.

Company slogan: Love, confidence, determination and integration, responsibility, progress

Legal person: Terry Gou

Contents

Group Profile Overview

Ranking

Investment

Production Focus

Historical Development Overview

Mold

Fortune 500

Corporate Culture

Corporate Structure

Company Power

R&D Innovation

Overview of Development Prospects Group

Ranking

Investment

Production Focus

Overview of Historical Development

Mold

Fortune 500

Corporate Culture

Corporate Structure

Company Power

R&D Innovation

Development Prospects

Expand and edit this paragraph Group Profile

Overview

Hon Hai Corporation was founded in 1974. In 1995, the company’s turnover exceeded NT$100. 100 million, it was listed in London for the first time[1] in 1999 via GDR. In the same year, it was rated as the best-managed company in Taiwan by Asia Money, the most influential magazine in Asia, since its founder; Terry Gou

Since 2001, it has been rated as the number one private manufacturing company in Taiwan for four consecutive years, and it has been rated as the number one export manufacturer in mainland China for three consecutive years since 2002. Based on the research and development, mold opening and manufacturing of various precision molds, Hon Hai is mainly engaged in the development, manufacturing and sales of components and systems for products in computers, communications and consumer electronics and other related fields. With a grand entrepreneurial vision to lay out global manufacturing bases and implement the control of intellectual property rights, Hon Hai Enterprise Group has obtained more than 11,000 patent rights in China, the United States, and Japan to date. This is a concrete demonstration of the results of many years of research and development. . Hon Hai Enterprise Group is endowed with the corporate culture of "love, confidence, determination" and "integration, responsibility, and progress", and is committed to the business practice of "research and development in two locations, design and manufacturing in three districts, and global assembly and delivery", and strives to better performance to repay society.

Ranking

In 2003, among the top 400 companies in the world announced by Forbes magazine, Hon Hai Precision Industry had the highest revenue ranking among the seven Taiwanese companies on the list, ranking 291st. name. Hon Hai has developed rapidly in recent years and has become the leader of private enterprises in Taiwan. The main reason is due to its proactive investment in mainland China.

Investment

"Hon Hai" invested in the mainland in 1977. Today, "Hon Hai" has become the second largest exporter of Taiwanese companies in the mainland. Cost competitiveness and R&D technology are constantly improving, and profits are increasing year by year. It is reported that Hon Hai has achieved impressive sales growth of 62% for five consecutive years, of which the production of the company's mainland factories accounts for a considerable part. Foxconn Group, the main manufacturing base of Hon Hai Enterprise Group in mainland China, was developed by Taiwan's Hon Hai Group after investing in mainland China. It mainly produces high-tech key components and system products such as computers, network communications, and consumer electronics. It has 36 wholly-owned subsidiaries in Shenzhen, Kunshan, Hangzhou, Tianjin and other places in mainland China.

Production Center

At present, the production center of "Hon Hai" has been moved to the mainland. Shenzhen Longhua Science and Technology Industrial Park was established in 1996, covering an area of ??1,500 acres and employing 33,000 people. Later, it laid the foundation for "Hon Hai" to start mass production of personal computer hardware equipment. The Foxconn Group located in Shenzhen is Hon Hai's mainland company. As early as seven or eight years ago, it ranked sixth among foreign investors and is also unknown. In 2001, Foxconn's export volume reached US$2.4 billion, accounting for 6.2% of Shenzhen's total export value that year. It ranked second among the "China Hon Hai Precision Group's Top 200 Exporters", and alongside him was Well-known companies such as Oriental International, Sinopec, Putian Information, and Motorola (China). What’s interesting is that although Gou Taiming is not public about himself and Hon Hai, he always likes to publicize the word "Shanxi", "President, I am from Shanxi, and the future world is 3C (the homophone of Shanxi) (3C means computer, communication, "Consumer-electronics" is a familiar macro theory both inside and outside Hon Hai. Terry Gou loves drinking, or rather Fenjiu, and he and his group "do Fenjiu when they drink." In Shenzhen, every time I entered a hotel, I would first ask if there was Lao Baifen, and then leave without turning around. "Because of me, all the major hotels in Shenzhen put Lao Baifen on display." This became something that Terry Gou was very happy about. Many people find it difficult to understand that this IT tycoon, who spans three continents and has 50,000 soldiers under his command, is so passionate about his hometown that he only set foot in when he was 37 years old. Donated 5 million yuan to build a bridge in Gewan Village, Sangzi, donated 2 million yuan to establish the "Aiwu Scholarship", invested 5 million US dollars to establish Fujin Precision Mold Company... In the more than ten years since Hon Hai moved to the mainland in 1988 and founded Foxconn, the company has The average growth rate exceeded 60, and it was also around 60 in other years, such as more than 50 in 2001 and more than 70 in 2002. Breaking through the NT$300 billion mark in 2003 is already in sight.

Historical Development

Overview

When Hon Hai was founded in 1974 with NT$300,000 and a dozen employees, the product it produced was black and white TV knobs. Knobs are the same as the connectors he later produced. How well the mold is opened directly affects the quality of the product. So starting in 1977, Terry Gou, who had finally saved his first capital, faced three choices: First, go to Japan to buy mold equipment. , build our own mold factory. The second is to buy land to build a factory instead of renting a factory building; the third is to buy raw materials and hoard them when the prices of raw materials are rising. Faced with the temptation of the money game, after several struggles, Terry Gou decided to choose the former. Just six months after the mold factory was built, the land that Gou originally wanted to buy had tripled in price, and the raw materials had also increased. Many colleagues don't understand: "It's cheaper to buy (molds) from outside, so why do you have to make them yourself?" If he wants quick profits, he can sell the mold factory and go back to buy land. But Terry Gou, who wanted to make a name for himself, never looked back. In 1980, Hon Hai Mold Factory began to show performance. Later, Hon Hai successively established electroplating departments and stamping plants, quickly widening the distance from its peers. In the 1980s, the PC industry took off and black and white TVs declined. Hongju, who possesses mold technology, quickly entered the field of personal computer connectors and established a dominant position in connectors.

Molds

Hon Hai started out with molds. Terry Gou always likes to emphasize that what he does is "mechanical" rather than "electronic". In the Foxconn Group, the English name of Hon Hai Precision Mold Co., Ltd. is "FOX-cavity". It is interesting to use the "fox cave" as a metaphor for precision molds that everyone can understand; but its internal code name or abbreviation is actually the serious "core". An IT expert said: "OEM is to produce products that others can't make, rather than to produce products that others don't want to make." Terry Gou relied on the leading technical foundation of molds to successfully achieve "In my field, there are no competitors." "This is why it ranks fifth among EMS factories and ranks first in profits. But the most critical step for Hon Hai to grow bigger is to choose customers. Terry Gou even did not hesitate to use "fourth-rate talents, third-rate management, and second-rate equipment" to highlight Hon Hai's "first-rate customers."

When Terry Gou was 30 years old, he vowed to only do business with the world's first-class manufacturers, and only by following the first-class experts can he develop rapidly. Now IBM, Compaq, Intel, Sony, HP, Dell, Cisco, Nokia, Motorola and other famous IT industry companies are Hon Hai's customers. Hon Hai already has the ability to produce computers and other complete machines, but Terry Gou does not have his own "brand dream." Major companies don't have to worry about a "Hon Hai brand" popping up to compete with them, and can expand cooperation with Hon Hai with more confidence. Hon Hai does not have its own brand, but every brand has Hon Hai! In other words, any famous brand may suffer a setback due to mistakes. If Hon Hai encounters a similar fate, there can only be one premise. At least most of every famous brand has suffered a setback and fallen. When the personal computer industry took off in the 1980s, it entered the field of personal computer connectors with mature mold technology, and its connector kingdom began to be established. In 1999, it swallowed up Huasheng, Guangyu and other companies in one go and carried out reverse integration, allowing Hon Hai Precision to develop into Hon Hai Group, transforming it from a regional manufacturer into a world-class enterprise. In 2002, Hon Hai became Taiwan's largest private manufacturing company and ranked third among the "Global Technology Top 100" in 2002 by Business Weekly. In 2003, Hon Hai bucked the trend despite a sharp decline in mobile phone OEM gross profit margins, revealing its strong ambitions. It is Hon Hai's obvious goal to transplant the complete value chain it has constructed on PC foundry to mobile phones and further unleash the potential of this structure. As a rising star in Taiwan's manufacturing industry, the industry has seen that Hon Hai is expected to become the leader in the mobile phone OEM industry in the future. On July 6, 2010, Hon Hai Precision Technology Group announced that it had acquired the equity of Foxconn Slovakia, spol, s.r.o, the former Sony Slovakia LCD assembly plant, for 36 million euros through its Singapore subsidiary, with its cumulative shareholding reaching 90.1%. Together with the purchase of Sony's Mexican LCD TV assembly plant at the end of last year and media reports that it will buy another Spanish assembly plant, and the recent acceleration of the inward relocation of Hon Hai's Foxconn, the path for Hon Hai Group's layout transfer has gradually become clear. Group blueprint: Rooted in China and global operations. Hon Hai Group insists on focusing on integrated construction based on diversified development directions.

Fortune 500

On July 8, Beijing time, the Fortune English website released the latest ranking of the Fortune 500 companies in 2010. Hon Hai Precision Group ranks 112th. Ranking company name (Chinese and English) Revenue (unit: million US dollars) Net profit (unit: million US dollars) 112 Hon Hai Precision Industry (HonHai Precision Industry) 59,324 2,292

Corporate Culture

Hon Hai Enterprise Group is endowed with the corporate culture of "love, confidence, determination" and "integration, responsibility, and progress" and is committed to the business practice of "research and development in two locations, design and manufacturing in three districts, and global assembly and delivery" , strive to repay the society with better performance.

Edit this paragraph's corporate structure

Hon Hai is based on the research and development, mold opening and manufacturing of various precision molds, and is mainly engaged in the assembly of products in related fields such as computers, communications and consumer electronics. Development, manufacturing and sales of mechanical components and systems. With a grand entrepreneurial vision to lay out global manufacturing bases and implement the control of intellectual property rights, Hon Hai Enterprise Group has obtained more than 11,000 patent rights in China, the United States, and Japan to date. This is a concrete demonstration of the results of many years of research and development. .

Company Power

Among the five largest EMS companies in the world, Hon Hai Precision Group has the most outstanding development. The settlement cycle for Hon Hai Precision, ASUS Computer and Quanta Computer is from January to December each year, for Sanmina-SCI in the United States, it is from October of the previous year to September of the following year, and for the rest, it is from April of the previous year to March of the following year. moon. The data is first calculated based on the average monthly sales and then converted into Japanese yen. Brand-new factory buildings with milky white exterior walls, dormitories for employees, commercial facilities... a huge complex of more than 70 buildings is as far as the eye can see. On the one-way three-lane road that runs through it, trucks loaded with goods are driving back and forth. It is said that more than 100,000 employees work here.

Because the place is so big, some people ride electric scooters through the buildings like they would on a golf course. Since its business model is OEM and the company name is generally not exposed, Hon Hai Precision is not very famous. However, the rapid growth momentum of its performance can only be described as explosive. Since the joint settlement report was released in 1999, the company's sales have maintained an annual growth rate of more than 40%. In 2005, joint settlement sales increased by 68% from the previous year, reaching 3.1056 trillion yen. It is a full 1 trillion yen more than Singapore's Flextronics, and far higher than large Japanese consumer product manufacturers such as Sharp and Sanyo Electric. It is like a huge iceberg that suddenly surfaced. From materials and components to products (finished products), services and content, on the "smile curve" that represents the level of added value in various industries, product manufacturing, Hon Hai Precision's largest source of revenue, is located at the "bottom" of it. In other words, it is not easy to obtain high yields. However, Hon Hai Precision's 2005 operating profit margin reached 5.4, surpassing most large electronics manufacturers located on the "upper edge" of the smile curve. Flextronics, which has an operating profit margin of only 1.9, and American Sanmina-SCI, which has an operating loss of 50.5 billion yen, are even worse.

R&D Innovation

The Group has been committed to R&D and innovation for many years, focusing on core technologies, including: nanotechnology, environmentally friendly process technology, flat panel display technology, wireless communication technology, and precision molds technology, server technology, optoelectronics/optical communication technology materials and application technology, and network technology, etc. The Group not only has a complete R&D management system, but also works hard on intellectual property management and actively takes improving the international competitiveness of Chinese people as its own responsibility. By the end of 2005, it has obtained more than 15,300 patents worldwide, not only continuously For three consecutive years, it has topped Taiwan's annual patent applications and patent approvals. In the MIT Technology Review's annual global patent rankings (MIT Technology Review), the Group is also the only Chinese company ranked among the top 20 in the world.

Development prospects

. Foxconn Group, the main manufacturing base of Hon Hai Enterprise Group in mainland China, was developed by Taiwan's Hon Hai Group after investing in mainland China. It mainly produces high-tech key components and system products such as computers, network communications, and consumer electronics. It has 36 wholly-owned subsidiaries in Shenzhen, Kunshan, Hangzhou, Tianjin and other places in mainland China. In the more than ten years since Hon Hai moved to mainland China in 1988 to establish Foxconn, the average annual growth rate has exceeded 60%, and it has also been around 60% in other years, such as more than 50% in 2001 and more than 70% in 2002. Breaking through the NT$300 billion mark in 2003 is already in sight.