HON HAI and YAGEO Forms Strategic Alliance
Hon Hai Technology Group (TAIEX: 2317 TW) and Yageo Group (TAIEX: 2327 TW) today announced to form a strategic alliance to combine two groups’ resources to integrate their R&D capabilities and technological innovations in key electronic components, thereby enhancing electronic industry’s added value and global competitiveness to provide better quality products and services for their customers. This strategic cooperation will officially start in the third quarter of this year.
Hon Hai and Yageo’s strategic partnership will differentiate from traditional supply chain operation. Not only in the development of key electronic components and the sharing of R&D resources, but also in the cooperation with global end customers, Yageo’s diversified high-end products can be fully integrated and matched to the new business scope of Hon Hai Technology Group.
Young Liu, Chairman of Hon Hai, said "Yageo is an industry leader in many technological fields. The solid cooperation with Hon Hai will be able to demonstrate the wisdom and advantages of Taiwan’s manufacturing industry. Through this strategic alliance, we will focus more on the development of new customers and products with joint resources to meet global customers’ needs in the supply chain support and functional design development and come up with more value-added solutions."
The strategic cooperation with Yageo will further strengthen Hon Hai’s "3+3" core development in future industries and technologies. Pierre Chen, Chairman of Yageo Group, said "With the cooperation of Hon Hai and Yageo, it is not just “3+3” but “3x3” achievement created by these two groups. For many years, Yageo has cultivated deeply in key electronic components for electric vehicles, smart healthcare, industrial specifications, 5G technology, and special semiconductor packaging and testing and has shown many concrete results in related areas. Through the cooperation with Hon Hai Group, we are able to enlarge mutual technological benefits and resource sharing to maximize the value of both groups and see multiple growths in the future."
In addition to its exceptional one-stop integrated services in the past 45 years, Hon Hai has been actively involved in the three new industries of "electric vehicles, digital healthcare, and robotics" and the three new technologies of "artificial intelligence, semiconductors, and new-generation communication". "3+3" is the group’s important long-term development strategy and has made great strides in various new industries and gradually established substantial progress and results.
After acquiring KEMET and Pulse, Yageo Group will not only focus on high-end 5G, automotive, industrial, aerospace, and medical segments, but also provide the group’s expertise and one-stop shopping platform in special semiconductor packaging and testing from Tong Hsing, automotive inductors and magnetic materials from Chilisin, and aluminum electrolytic capacitors from Kaimei. Yageo Group certainly will become the best strategic partner for Hon Hai Group in the development of electric vehicles, digital healthcare, and robotics.
Young Liu, Chairman of Hon Hai Technology Group and Pierre Chen, Chairman of Yageo Group attended the signing ceremony of the strategic alliance in person. Jerry Kuo, CEO of Chilisin, Vincent Weng, Chairman of Kaimei, and Heinz Ru, President of Tong Hsing, also signed the same strategic alliance agreement today.
Yageo Group has 15 design and R&D centers and 42 manufacturing sites around the world and has been providing world-class design-in services for a long time and continuing to develop and produce high-end key specialty components. Hon Hai Group has a comprehensive global footprint and its manufacturing and service facilities located in more than 20 countries and regions globally.
Moving forward, the cooperation between Hon Hai and Yageo is going to make significant progress in digital healthcare. Both groups will aslo build solid partnership in the thriving development of the electric vehicle industry. Yageo Group will be the best strategic partner and supply chain that matches Hon Hai's global allocations. The combination of global production and operation capabilities and technical capabilities of high-end key electronic components will provide win-win results and create even higher value for each other.