Hon Hai Eyes Taichung as Ideal for EV Production: Chairman Gou

Terry Gou, chairman of Hon Hai Precision Ind. Co. Ltd. of Taiwan, one of the world's largest EMS (electronics manufacturing services) provider, recently pointed out that Taichung, central Taiwan, has potential to form an electric vehicle (EV) industry cluster.

Gou made the statement at his group's technical expo, saying that Taichung is already a citadel of precision machinery, and may become also a vital production base for EVs.

Innolux Display Corp., an affiliate of Hon Hai group and a major thin film transistor-liquid crystal display (TFT-LCD) panel maker in Taiwan, has been supplying automotive panels to American premium EV maker Tesla Motors Inc. for five years, Gou said, and Hon Hai began supplying other parts to the EV maker about three years ago.

The EV is a necessary direction and trend, Gou said, and Hon Hai has been aggressively deploying related business. For example, he added, Hon Hai has invested in local UER Technology Corp., a lithium-ion (Li-ion) power-cell maker with production in Taiwan and China; and has advanced techniques in precision mold/die development, aluminum pressing, glass processing etc. In addition, he said, Hon Hai will venture into key EV systems gradually, such as EV central control systems and battery packs.

Regarding Hon Hai's EV manufacturing plan, Gou said that his company has not reached any agreement with carmakers about setting up an EV production line in Taiwan, but will first focus on talks with American vehicle makers over vertical integration in the U.S., so as to fill potential partners' production capacity in their home. Some customers are hoping Hon Hai to set up EV production lines in Taiwan and export Taiwan-made EVs to Southeast Asia, he added, but all talks are ongoing.

The chairman pointed out that if Hon Hai plans to set up an EV production line in Taiwan, Taichung would be prioritized with its vast hinterland, the Taichung Harbor for export.