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May 10, 2012

Foxconn builds Shangai Headquarters for operating and research hub

Focus Taiwan - Foxconn Technology Group, the main manufacturer for Apple Inc., is determined to grasp opportunities in the China market by setting up a one-stop business service for customers. Foxconn, also known as Hon Hai Group in Taiwan, broke ground Thursday on its China headquarters in Shanghai, as part of the group's bid to set up an operating hub and cutting-edge research and development center.

The headquarters, whose construction is scheduled to be completed in 2015, are expected to act as an e-commerce center in the Yangtze River Delta region for the group.

"With the new facilities, Foxconn is trying to integrate its services such as supply chain manufacturing, receiving and filing orders from customers and market expansion," Simon Yang, vice president of Topology Research Institute, told CNA.

Gou said he is confident that Foxconn's revenue will increase 10 percent in 2012 from last year.

According to Yang, the output value of China's domestic consumption market totaled 18.5 trillion Chinese yuan (US$2.9 trillion) last year, up 18 percent from 15.7 trillion Chinese yuan in 2010.

China Domestic Consumption with 15% growth
2011    US$2.9 trillion
2012    US$3.4 trillion
2013    US$3.9 trillion
2014    US$4.5 trillion
2015    US$5.2 trillion



Given the slowing demand for TVs in China, Yang forecast that 3G-enabled smartphones will become another momentum to drive the domestic market, which will benefit component suppliers as well as electronics manufacturing service providers like Foxconn.

He projected shipments of 3G smartphones to reach 128 million units in China this year, up 83 percent from the 70 million units in 2011.


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