Hon Hai Joins Forces With III to Develop Cloud Computing Software

Taipei, June 3, 2009 (CENS)--Hon Hai Precision Industry Co., Ltd., the largest EMS (electronic manufacturing service) provider, has joined forces with the government-funded Institute for Information Industry (III) of Taiwan to develop Cloud Computing application software as the first Taiwanese company to get engaged in the field.

Hon Hai and III will seek financial aid from the government for establishing the first lab of Cloud Computing as a joint venture between industries and the government on the island. So far, the Ministry of Economic Affairs has already lifted restrictions on official subsidization of development of related application software, paving the way for local companies to dedicate their energies to the field.

Hon Hai has decided to invest a total of NT$1.9 billion (US$58.46 million at US$1: NT$32.5) in constructing an R&D building in Kaohsiung Software Technology Park, southern Taiwan, to specialize in research and development of digital contents and information service offerings.

The project is scheduled to be kicked off this month, with III engaged in testing security and technology of Cloud Computing platform, and Hon Hai in providing real-world data through feedback of its overseas subsidiaries for testing. The process will take both sides about one year.

To make good use of research results of the technology, III has been actively lobbying Chunghwa Telecom Co., the largest telecom service provider on the island, to join the project, in hopes of enhancing promotion of the technology.

On the other hand, by investing in R&D of Cloud Computing, Hon Hai is to diversify its business operation into information services from manufacturing. Furthermore, the firm plans to apply Cloud Computing platform to the long-distance health care, showing its determination to venture into the medical care industry.