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Foxconn Heads To Indonesia As Chinese Apple Orders Fizzle

Taiwan's Hon Hai Precision Industry announced that it hopes to sign an agreement with the government of Indonesia this month, aiming to contact more clients in this Southeast Asian country and reduce dependence on Apple for original equipment manufacturer work.

At present, about 60% to 70% of Foxconn's operating revenue is from manufacturing the iPhone and iPad products. Foxconn is a brand under Hon Hai. However, with the growth slowdown of this American technology giant, Hon Hai is seeking expansion of its business.

Xing Zhiping, a spokesperson from Hon Hai, said that the company is currently negotiating with several mobile phone makers in Indonesia. After signing a memorandum of understanding with the local government, they will determine the investment methods and sign related cooperation agreements. Xing added that Hon Hai will not export mobile phones made in Indonesia to other countries or regions. They will make products for local brands, which will be sold in the local market.

Hon Hai did not reveal the investment amount; however, Gita Wirjawan, trade minister from Indonesia, said in August 2012 that it would be between USD5 billion and USD10 billion. Wirjawan said Hon Hai would build a plant in an industrial park near Jakarta and it would assemble three million mobiles phones annually.

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