Hon Hai plans to ramp-up Industrial Automation
Hon Hai Group, earlier known as Foxconn, the world’s largest electronics contractor, a major supplier to Apple Inc. plans to Automate 70% of its production lines for over the next three years, due to the rise in shortage of labor from the Chinese hinterland. The major concern for shortage of labor is due to many young adults not willing to work in Factories and looking out for better prospects in other sectors.
Moreover, Hon Hai requires high skilled labor to support precision and advance methodologies incorporated to manufacture the products it supplies to its major clients, which is relatively low to find out. As a result, Hon Hai plans to invest heavily on Industrial Automation to cope up with the demand and supply gap. Hon Hai estimates, Industrial Automation will lead all sectors of manufacturing and will be worth more than whole Automobile Industry soon.
As per the report, Hon Hai doesn’t intend to replace all its workers but wanted to increase the efficiency by this initiative and plans not to hire anymore for next few years by solely concentrating on automating production lines. The company also notified that it has no intentions to trim the employee strength.
Hon Hai targets to tender 5G License Bid, as it’s currently developing the 5G network technology that provides better connectivity and Internet experience to the users. It has recently cracked a deal with Nokia Corp as a part of Internet of Things Development to work closely on patent applications and the next generation wireless network technologies. Both companies are working together on developing tablet computers where Nokia is responsible to provide core communication technology as well as brand business. Hon Hai is also in the process of makeover from being an original equipment manufacturer to an innovative integrated design manufacturer.
Hon Hai accepts for the mistakes committed in the past for patent applications as it did not file for any patent rights causing it peers to copy and excel in the business. Hon Hai now is more committed on the quality of its patents than increase in quantity by maintaining a trust amongst the buyers.
The sales has been tremendously high for Hon Hai as the demand for latest Apple Iphone 6 reaching a record of 74 million in a quarter is unbeatable to many high end mobiles, by generating greater revenues for the company at $131.53 Billion a year.
Read more Plant Automation: http://www.plantautomation-technology.com/
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