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Terry Gou to bag over NT$3.2 billion in Hon Hai cash dividends

2018/08/20 13:47:34

Hon Hai Precision Industry Co. Chairman Terry Gou

Taipei, Aug. 20 (CNA) Terry Gou (郭台銘), chairman of Hon Hai Precision Industry Co., is expected to receive more than NT$3.2 billion (US$104 million) in cash after the company issues heavy cash dividends to its shareholders later this week.

Hon Hai, the world's largest contract electronics maker, is scheduled Friday to give out NT$2 in cash dividends per share owned by its shareholders for the 2017 earnings per share of NT$8.01.

As Gou currently owns about 1.62 billion Hon Hai shares, he is expected to pocket a total of NT$3.24 billion in cash dividends.

In addition, Hon Hai is also planning to cut its paid-in capital by NT$34.66 billion, or about 20 percent, to NT$138.63 billion.

The capital reduction is expected to be completed in October, which will return NT$2 in cash for each share owned by its shareholders and then Gou is expected to bag an additional NT$3.24 billion.

The market is watching closely how Gou will deal with such a large amount of cash. In recent years, the tycoon has donated cash dividends to charity groups for cancer research.

Local media reported late last week that Hon Hai, known as Foxconn in the global market, has signed an agreement with the Zhuhai City government to build a chip fabrication plant in China's Pearl River Delta area.

According to the cooperation agreement, Hon Hai, an iPhone assembler, will team up with the Zhuhai authorities in integrated circuit design and other semiconductor services.

Hon Hai has an ambition to transform itself from a contract electronics maker by extending its reach to software development in growing technologies such as the Internet of Things and artificial intelligence.

Having set its sights on growing demand for chips from these new technologies, the reports said, Hon Hai is set to build the Zhuhai semiconductor hub at a time when China is intensifying efforts to cultivate its own semiconductor industry to reduce dependence on imports, the reports said.

(By Chung Jung-feng and Frances Huang)