Foxconn, Chongqing to set up R&D center: report

The China Post news staff

The China Post news staff–Bo Xilai, Communist Party secretary of China’s Chongqing Municipality, received Terry Guo, chairman of Foxconn Technology Group and Hon Hai Group, on Friday and then attended a cooperation pact signing ceremony between the municipality government and Foxconn, the United Daily Evening cited the Chongqing Daily as reporting yesterday.

The Chongqing Daily reported on Feb. 24 that Bo and Municipality Mayor Huang Qifan met with Guo and his team before the signing ceremony to exchange views on how to reinforce bilateral cooperation.

At the ceremony, Guo and Huang inked a memorandum of understanding on jointly establishing a world-caliber technology research and development center in Chongqing Municipality.

On the occasion, Bo extolled Foxconn for making an insightful decision to deepen its cooperation with Chongqing.

Just one day earlier, the Chongqing Daily also reported Bo receiving Edmund Ho, former chief executive of Macau Special Administrative Region.

Since Chongqing deputy mayor Wang Lijun spent more than 24 hours in the U.S. consulate in the city of Chengdu on Feb. 6, Bo’s activities have won great concern among Chinese political communities. Although reported to have quit his post as Communist Party secretary, Bo is expected to attend the National People’s Congress to open in Beijing on March 5. “I don’t see any reason for Bo to be absent from the upcoming conference,” a ranking executive of the National Committee of the Chinese People’s Political Consulate Conference said. On another front, the Taiwan-based Hon Hai Group yesterday declined to comment on the report that its affiliate Foxconn Technology Group will cooperate with Chongqing Municipality to set up a world-class technology research and development center to develop optoelectronics products.

But it’s well known that Chongqing is now Hon Hai’s personal computer manufacturing base in mainland China, and therefore the signing of the cooperation MOU will be conducive to the vertical integration of Hon Hai’s production and marketing operations in the mainland, thus allowing Chongqing to emerge as a leading high-tech manufacturing base in China.

Taiwan’s leading notebook PC makers Acer Inc. and Inventec Corp. have set up notebook PC production bases in Chongqing. This, coupled with Hon Hai’s move to set up an optoelectronic technology R&D center there, will help Chongqing become a key stronghold for Taiwanese enterprises to tap western mainland China. Chongqing now has an annual production capacity of over 10 million notebook PCs.

Besides PC production center in Chongqing, Hon Hai has operated an iPad manufacturing base in Chengdu, and an optoelectronic center in Hubei Province.