As Hon Hai Precision Industry Co. dives further into the automation industry, its construction of a new R&D center in China's Anhui Province will break ground before mid-October, according to a Chinese media outlet.
The R&D center's design blueprints have been approved by the mainland Chinese authorities, and all the paperwork is expected to be completed by the end of September. Construction is set to be finished by March 2016.
Hon Hai is positioning itself for the newest Industry 4.0 and Beijing's "Made in China 2025" grand scheme.
The company wants to make headway into mold automation and cloud applications that are needed in the next generation Internet of Things and smart cars.
Market analysts said the contract manufacturer started investing in numerical control technology and precision machinery last November, actively making inroads into automation-related critical parts and components.
Hon Hai is already carrying out mass production on three types of machine tools, churning out a total output worth 310 million Chinese yuan in the first half of 2015. The company expects to reach its annual production target before the end of October.
Also, Hon Hail's research on its precision servomotor, its injection-molding machine and mill-turn machine tools has been successful. Mass production may soon begin.
Hon Hai Makes US$200 million Investment in India
Hon Hai is also active in its investment endeavor in India. Its subsidiary FIH Mobile Limited yesterday announced its plan to purchase US$200 million worth of shares in Indian company Snapdeal. The transaction will give FIH a 4.27-percent stake in the company.
The deal will give FIH Mobile an opportunity to transform end-to-end information and mobile Internet applications, the company said.
Through the transaction, Hon Hail will also beef up its infrastructure system via its greater access to the Internet of Things technology.
The investment will help FIH realize its "Digital India" vision and establish closer ties with local customers, said FIH Chairman Vincent Tong.
Snapdeal's online platform will aid FIH's mobile device online sales, delivery and promotion, Tong added.
This venture is part of FIH's plan to use Big Data to create smart production systems, develop new products and provide solutions for its customers, Tong said.
Hon Hai has set the goal of establishing 10 to 12 manufacturing facilities in India by 2020. It intends to wade into the fields of online services, mobile Internet of Things, e-commerce and renewable energy with partners in India.