Asia Express - East Asian ICT
Foxconn's Guo Shares Views on Branding, M&A
June 24, 2005

During a Foxconn shareholders' meeting on June 14th, chairman and CEO Terry Guo asserted that the company will be not be traveling down the branded road that has so enraptured other Taiwanese makers. The CEO noted that not only do branded businesses absorb tremendous resources, but also can only be successfully achieved under three conditions: strong core technology, world-class quality, and a solid global after-sales service network. Also key to success is home market capable of nursing brands. Guo further pointed to the need of for support on a national level if companies are to simultaneously engage in branding, R&D, and manufacturing. Addressing the possibility for mergers and acquisitions, Guo said that there will likely be one or two in the second half of the year. For Innolux, the display company within the Foxconn Group, any acquisitions would be for backward integration; forward integration is not being considered. Guo mentioned that hopes were to employ a three way model similar to that adopted by AUO (panel) - BenQ (monitor) - Coretronic (backlight).