Terry Gou touts Hon Hai’s evolution as it has adopted an innovative business model that ranges from supplying key components to serving the end user

October 8, 2013 Leave a comment

Terry Gou touts Hon Hai’s evolution at APEC summit

CNA 2013-10-08

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Terry Gou at the APEC summit. (Photo/CNA)

Hon Hai Precision Industry, the world’s largest contract electronics manufacturer, has adopted an innovative business model that ranges from supplying key components to serving the end user, said Hon Hai chairman Terry Gou on Monday. He called the model “IIDM,” or Integration Innovation Design Manufacture, singling out integrated innovation as the capability that a company needs to stand out in the current age of technological revolution.Gou made the comments at the CEO summit of the annual Asia Pacific Economic Cooperation forum being held in the Indonesian resort island of Bali.

In Taipei, Hon Hai, known as Foxconn outside Taiwan, said it was the first time Gou explained the concept of IIDM in public and said it represented his determination to expand the group’s software capabilities to match its prowess in hardware manufacturing.

The group has 40 manufacturing facilities in 12 countries worldwide that employ 1.3 million people and assemble products such as Apple’s iPhones and iPads.

At the summit, Gou said his group aims to develop computer and communication products with “smart content,” smart medical systems and contribute to the building of smart cities that are connected to 4th-generation or even newer communications technologies.

Speaking to reporters after the meeting, Gou said Hon Hai’s five-year plan on setting up a cell phone manufacturing base in Indonesia will begin next year with the selection of a joint venture partner and necessary changes to regulations falling into place soon.

He cited the abundance on the local market of cell phones of poor quality and devices imported illegally as a reason for the delay in the investment project, which had been expected to begin last year.

There will be a decision soon on the establishment of a testing facility that will help weed out unsafe and illegal cell phones, said Gou.

Filed under Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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