Foxconn Electronics (Hon Hai Precision Industry Group), the world's largest contract maker of electronics, plans to invest $10 billion in the next five to ten years into manufacturing facilities in Indonesia, according to media reports. The production giant intends to boost its manufacturing capacities to make more cell phones, tablets, TV-sets and other consumer electronics.
Terry Guo, the chairman of Foxconn, visited Indonesia this week to investigate investment climate and the market of electronic devices in the country. The head of Foxconn was accompanied by representatives from Taiwan trade and economic representative office and Indonesian officials. Given the fact that both Hon Hai and the Indonesian government show signs of optimism, it is likely that the world's largest contract maker of electronics will actually build its production capacities in the country.
According to China Economic News Service, which quotes Indonesian news-agencies, Hon Hai intends to invest between $5 and $10 billion into the country in the next five to ten years in order to build manufacturing capacities to produce mobile phones, e-book readers, tablet PCs, and smart TVs. Initially, Hon Hai wants to produce goods for domestic market. The company is reportedly going to start building its first factory in Indonesia this December and is currently negotiating Industri Telekomunikasi Indonesia (INTI) for a joint venture for producing electronic products and telecommunications equipment.
Earlier this year Foxconn acquired a stake in Sharp and gained partial control of one of the world's leading LCD manufacturing facilities. As a result, Foxconn secured supply of liquid crystal displays used in mobile phones, personal computers, tablets, TVs and other popular devices. Thus, the company now needs to further expand production capacities to build even more devices for companies like Apple and others that use Foxconn's services.