Hon Hai to increase number of 'lighthouse' factories in China

01/16/2021 09:56 PM
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CNA file photo
CNA file photo

Taipei, Jan. 16 (CNA) Hon Hai Precision Industry Co., the world's largest contract electronics maker, is planning to increase the number of its "lighthouse" factories to 20 in China in 2021.

Hon Hai, also known as Foxconn internationally, said earlier this week that it opened 10 lighthouse factories in China in 2020 for such processes as mold and computer numerical control equipment manufacturing, surface-mount technology development, and system assembly.

Hon Hai said its efforts to build lighthouse factories will continue in 2021, bringing the number to 20.

In 2018, the World Economic Forum and consulting firm McKinsey recognized nine manufacturing plants from a survey of more than 1,000 as "lighthouse" factories for their digital transformation.

The term refers to production plants that have adopted fourth industrial revolution technologies such as artificial intelligence and the Internet of Things in their daily operations.

Hon Hai said the presence of lighthouse factories is part of its initiative to upgrade its production capability and raise its competitive edge.

Shanghai-based Foxconn Industrial Internet Co. Ltd. (FII), one of Hon Hai's subsidiaries, has also adopted the lighthouse concept, recently showcasing its solutions to build a lighthouse factory in Hengyang in China's Hunan province.

According to FII, its lighthouse factory solutions aim to boost production efficiency by 30 percent, lower inventory cycles by 15 percent and shed manpower by 92 percent.

In recent years, Hon Hai has been keen to transform itself from a pure contract manufacturer into a company which is able to integrate its hardware and software capabilities.

The group has been actively jumping into emerging technologies such as 5G applications, electric cars, and digital health care to boost its profit margin in a competitive market.

(By Chung Jung-feng and Frances Huang)

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