Manufacturing News

Hon Hai building manufacturing base in Chongqing, China

With Hon Hai Group's chairman, Terry Gou, presiding over the groundbreaking ceremony for its notebook PC manufacturing base in the Chongqing Xiyong Electronics Industrial Zone, Sichuan Province, China, the world's largest EMS (electronics manufacturing service) group has officially kicked off its business operation deployments in Chongqing City.

Gou indicated that his group has repeatedly made fact-finding tours of Chongqing since August, in an effort to locate the group's first manufacturing base of notebook PCs supplied to HP, and set up production lines of LED (light emitting diode) lightings and magnesium-aluminum alloy products, as well as laboratories for the development of carbon emission monitoring technologies and related testing application software.

Besides, the group has also planned to spend RMB10 billion (US$1.46 billion at US$1: RMB6.83) buying three lots of land in downtown Chongqing to increase retail outlets for its reinvested 3C (computer, communication and consumer electronics) product chain store, Saibo Digital. Plus, the group is to open the largest shopping mall of household electronics in western China in cooperation with Germany's Metro Group in Chongqing, and cooperate with Lee Kai-fu, the ex-vice president of Google Inc., to set up a so-called "plant of innovation" as part of its effort in the city.

According to local news agencies, Hon Hai Group has been constructing industry chains of notebook PCs, software developing services, IC (integrated circuit), digital appliances, mobile communications, solar energy, LED, auto electronics, next-generation monitors, medical instruments and animations, showing its ambition to carry out grand investment plans in the city.

The investment plans have been in a formative stage since early August, when the group announced cooperation with HP to establish production lines of notebook PCs for the latter, and showed its intention to build a manufacturing base in the industrial zone in the city. The manufacturing base is scheduled to be operational in 2012, capable of rolling out 20 million notebook PCs a year and generating annual production value of over RMB200 billion (US$29.28 billion) then.

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