Hon Hai to undergo massive transformation

Hon Hai Group, more commonly known as Foxconn, is about to undergo a pretty big reshuffle.

The company will transform its business groups and some of its subsidiaries will go public, Focus Taiwan reports.

Hon Hai Group Chairman Terry Gou said the company will retain six core businesses, precision machinery, optics, material technology, cloud computing, network and automation R&D.

Gou said other business groups will be transformed and they will go public after being independent for three years. Foxconn’s so called “eyeball” group, which involves all products that are centred on eyesight such as phones, AIOs and television, will be split into five to ten new companies.

Hon Hai execs believe such an approach will help it raise more money once the new companies go public. Gou also warned that the state of the global economy does not leave much room for optimism, saying the economic recovery in the US is not solid and that China’s economy remains weak.

Despite the volatile economy, Foxconn is expected to start tapping new markets this year, including cloud computing, software, fiberoptics and retail channels.