Taipei, Oct. 7 (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 Inc.'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 communication 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.
(By Jalen Chung)