Hon Hai assesses to reduce and shelve investment in Weizhou

According to foreign news, Hon Hai Group is reconsidering the practice of investing heavily in the United States, evaluating the reduction or shelving of investment in Wisconsin, and it is reported that Guo Taiming, President and chairman of Hon Hai, plans to meet with the new governor of Weizhou. Hon Hai said last night that investment in Weizhou is still a priority. However, according to the previous English statement issued by Hon Hai group, it has released the message that it will flexibly adjust its local layout in response to the global economic situation.
 
Hu Guohui, the personal assistant of chairman and President of Hon Hai group, said yesterday that Hon Hai is considering reducing or even shelving plans to invest $10 billion in the United States to set up a high-end LCD panel factory, and now plans to hire engineers and researchers instead of the promised manufacturing workers in the United States.
 
Hu Guohui was also quoted by Reuters yesterday as saying that Hon Hai is reconsidering its massive investment in the United States because of the high cost of producing high-end TV screens in the United States.
 
The plans could be scaled back or even shelved, Mr. Hu said. Hon Hai is still evaluating options for Wisconsin, he said, but the cost of producing high-end television screens in the US is high because local labor wages are relatively high.
 
When it comes to the production of high-end TV screens, Mr Hu said: "if there are more panels of a certain size, whether they are produced in the mainland, Taiwan or Japan, we have to adjust them. "He said that it would be better to produce LCD panels in Greater China and Japan, transport them to Mexico for final assembly, and then import the finished products to the United States than to produce LCD panels in the United States, which would also be more in line with Hon Hai's current" smooth and good business model. ".
 
In fact, as early as the middle and late October of last year, Hu Guohui received a visit from the local media. Hu Guohui mentioned in his visit that due to the development of higher value applications in the United States, the manpower allocation in the new plant area has been further upgraded, and the main reason is to hire knowledge workers.
 
According to the exposure plan at that time, only about one of the factory area has become a production line assembly worker, and 90% of the factory area will focus on knowledge workers such as artificial intelligence and technology research and development related to the 8K + 5g ecosystem of Hon Hai group, and cooperate with a large number of automation and robots to build an advanced manufacturing line.
 
According to an English statement released in January, Hon Hai Group has invested more than $200 million in Wisconsin so far. Last year, it created 1032 jobs in the local area. As for the recruitment situation and schedule in the local area this year, it will be adjusted to cope with the global economic situation.
 
According to the plan announced last year, Hon Hai Group's investment in the region has determined the direction of changing from 10.5 generation line to 6 generation line planning, so as to be more flexible to meet market demand. On the other hand, Reuters reported yesterday that sources familiar with Hon Hai group revealed that Gou planned to meet with new Democratic governor Tony Middleton Evers of Wisconsin later this year. As for the new governor's winning election, it is mainly to criticize Hon Hai's local investment plan.