Hon Hai Technology Group (Foxconn), under the leadership of the Founder Terry Gou, has embraced the key tenets of “sustainability, stability, development, technology, and international”. Striving over the years to provide the world's most competitive brand in technology manufacturing and services, in order to enable all humankind to enjoy the conveniences of consumer electronics.
Currently, Foxconn not only commits to the further development of precision molds, but still strives for innovation, and continue the core transformation from “brawns” to “brains”, by following the roadmap from; “Foxconn 1.0” Existing business optimization; “Foxconn 2.0” Digital transformation ; and “Foxconn 3.0”Transformation to new industries focusing on electric vehicles, digital health, and robotics. These three phases seem to focus on completely separate disciplines, but are deeply intertwined and are crucial to us in order to achieve our everlasting commitment for better results.
In regards to “Foxconn 1.0”, in 2019, we has declared four key areas of implementation including governance structure, sharing system, margin maximization, and lean management. This establishes a communication highway to and from the central Group, and in-turn creates a strong core so the fruits of our endeavors can be bore on the outlying branches. Early “governance structure” and continued “sharing system” and collaboration of resources within Foxconn play a crucial role in the systematic resumption of work and manufacturing. Additionally, Foxconn has implemented systematic procedures in the procurement process, which eliminates unnecessary cost arising from exploitation or fraud due to human factors. Furthermore, Shareholder profits have also seen a marked improvement, effectively achieving margin maximization, and lean management.
For the digital transformation of “Foxconn 2.0”, Foxconn has utilized digital technology to increase the efficiency and effectiveness of operations. For example, we have optimized our website and related platforms for improved communications with our Shareholders and investors. We have also established a supply chain management platform to streamline upstream and downstream information transparency. On one hand, the increase in information transparency enhances supplier management, and on the other we can achieve increased agility and timeliness to satisfy changes in customer demands. Foxconn has also started the conception of several big data databases, and have taken a more objective statistical approach to management, effectively establishing smart, automated strategic procedures. Additionally, in both areas of manufacturing and performance, Foxconn has also embraced this scientific, metrics-based approach. All-in-all, this has enabled Foxconn to achieve “Increased Quality and Efficiency, and Decreased Cost and Inventory”, to maximize the returns for the Group.
Foxconn will leverage R&D capabilities and investments in new industries to achieve the restructuring and upgrade towards “Foxconn 3.0”. As mentioned above, we will be investing in “electric vehicles, digital health, and robotics industries”, and also “artificial intelligence, semiconductors and next-generation communication technologies”, forming our key “3+3” (industry and technology) strategy. Using electric vehicles as an example, Foxconn has a formidable global supply chain, and possesses key component manufacturing capabilities, structural R&D capabilities and system integration services. This unique set of proficiencies allow Foxconn to vertically consolidate services, and also provide services on smart platforms. Foxconn will maintain its core ethos of sharing, and continue its dedication to innovative technologies to propel the sustainable development of our automotive ecosystem.