Hon Hai Plans to set up High-End Production Line in Taiwan
The Ministry of Economic Affairs (MOEA) is assisting Hon Hai Group in seeking plot of land to site high-end production lines in Taiwan, as part of its effort to solicit Taiwanese businesses returning to Taiwan for investment, at a time when their Chinese operations are being beset by soaring labor cost.
Hon Hai reportedly contacted the MOEA for assistance to the plan around half a year ago. At the company's shareholders' meeting the other day, Terry Gou, Hon Hai chairman, confirmed that the company plans to step up its investment in Taiwan, including the establishment of fully automated plants.
In addition to land, the MOEA will also help the company solve the problems of power/water and labor supply for the new plants on the island. The ministry has hoped that Hon Hai serves as the bellwether in encouraging other Taiwanese-invested companies in China to go back to Taiwan for investment, triggering a current of "salmon returning home," in order to create job vacancies and cut unemployment rate. Premier Wu Den-yih has vowed to cut unemployment rate to less than 5% by year end, promising to step down should the government fail to achieve the goal.
To augment the appeal for prospective investors, the government reportedly plans to raise the standard expense for the board and accommodation for foreign laborers by NT$2,500 per month, which is deductible from their monthly pays, now set at NT$17,280, or the legal basic pay level, at the minimum.
