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Tuesday, June 10, 2014
Foxconn To Become A Technology Services Company

Taiwan's Hon Hai Precision Industry Co., a supplier of electronics components and devices, is set to be transformed into a technology services company to meet consumer demand.

Hon Hai, better known as Foxconn Technology Group, will provide total solutions from content creation to information management, cloud storage and data transmission, the company's executives said on Tuesday at the Global Device Summit, part of the Mobile Asia Expo in Shanghai.

Terry Gou, the founder and chairman of Hon Hai, urged the establishment of a "smart society" that incorporates devices with services.

"Devices are terminals. Cloud computing, cloud storage and transmission through the Internet have to be integrated," the executive said in his keynote presentation.

He said that wearable devices would play an important role in areas such as health management, although some current wearable devices lack of integration with the cloud ecosystem, which is connected to the automotive sector and a vision described as a "smart city" initiative that would work across products and services from different parties.

Asked to comment on recent market rumors that Hon Hai plans to launch own-branded budget phones to take on China's handset maker Xiaomi Corp., Gou said his company "will not build its own brand as people have speculated" but will rather continue to manufacture products for customers based on demand.

Hon Hai has already striked a deal with Hewlett-Packard to offer product design and manufacturing services.

In August 2013, U.S. projection equipment maker InFocus and FIH Mobile Ltd., a subsidiary of Hon Hai, jointly launched two smartphones in Taiwan. Hon Hai said it expects InFocus to become one of the top five smartphone brands in Taiwan within two years and one of the 10 best-selling brands in China.

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