Hon Hai to expand investments in Henan, focus on key component development

Taipei, Jan. 6 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. is planning to invest more in China's Henan Province, focusing on 5G smartphones and helping the group facilitate a technology upgrade, according to the Development and Reform Commission of Henan Province.

Data released by the commission recently showed iPhone assembler Hon Hai, also known as Foxconn internationally, will expand its production capacity in industrial parks located in Zhoukou, Lankao and Jiyuan counties of Henan.

The data, however, did not provide any financial terms.

In addition to an increase in capacity, Hon Hai will also build a research and development center and dormitories in its complex in Zhoukou in a new compound with a floor area of 320,000 square meters, aiming to develop critical components for cellphones, tablet computers, PCs and wearable devices, the commission said.

In 2021, Foxconn Industrial Internet Co. (FII), Hon Hai's Shanghai-listed subsidiary, set up a production base in Zhoukou, its second in Henan after a sprawling complex in Zhengzhou, the commission added.

The Zhengzhou base is responsible for rolling out Apple Inc.'s iPhones, while its other production hub in Shenzhen of Guangdong province is engaged in development and the new product introduction (NPI) stage for iPhones.

In Lankao, Hon Hai will devote itself to developing precision component technologies for 5G smartphones, while installing advanced equipment in a plant located in the industrial park in Henan County, according to the commission.

Hon Hai's annual report showed Hon Hai has several subsidiaries in Lankao, including one company that develops eco-friendly materials.

The commission said Hon Hai will also expand production capacity in its base located in Jiyuan by building a plant with a floor area of 280,000 square meters.

According to Hon Hai's annual report, Fulian Technology (Jiyuan), another of the firm's China-based subsidiaries, specializes in developing applications related to phones, base stations, networking, automation inspection equipment, artificial intelligence, robot learning and smart decision-making.

In late April 2023, Hon Hai inaugurated a new business headquarters in Henan. According to Chinese news media reports, the new business headquarters has targeted AI software and electric vehicle recharging equipment development.

In December 2023, Hongfujin Precision Electronics (Zhengzhou) Co. of Hon Hai invested 500 million Chinese yuan (US$69.80 million) to open a new energy vehicle company.