Reported 12 months ago
Recent remarks by Hon Hai Chairman, Terry Gou, regarding 'nuclear energy' and 'AI outsourcing not limited to Taiwan' have sparked debates. Peter Hsiao, Chairman of Wealth Magazine, pointed out that when it comes to outsourcing, gross profit margin, and added value, entering NVIDIA's supply chain has left Hon Hai with a gross profit margin of 4.23% in the first quarter of this year, compared to other factories with 6-10%. He emphasized that Taiwan's electronic manufacturing industry is gradually moving away from China's production base to places like the East, Mexico, India, and even Africa, aiming to avoid Chinese companies' low pricing. Taiwan's companies are urged to focus on innovation in niche markets and to abandon low-margin 'bulk goods' in order to improve profit margins over the years.
Source: YAHOO