Guo Taiming listened to Ma Yun’s speech and disrupted the thoughts of investing in AI field.

Two years ago, at a conference in Alibaba, Hon Hai’s founder, Guo Taiming, listened to Alibaba’s founder Ma Yun’s speech on “New Retail, New Manufacturing, New Finance, New Technology, New Resources” and did not sleep overnight. Well, the leader of the global manufacturing industry has been upset by the new manufacturing proposed by Ma Yun.

In the past 43 years of development, Hon Hai (the mainland factory is known as Foxconn) has been the trend of the manufacturing industry, but the gradual decline in the profit of foundry in recent years has made this company a lot of controversy, when an Internet When the company proposed to do "new manufacturing," Guo Taiming said that he was caught off guard after listening.

But two years later, Guo Taiming apparently calmed down a lot. Recently, at a temporary shareholders meeting held in Taiwan, Hon Hai said that Hon Hai is no longer a foundry and has transformed from a hardware company to a platform company. At the same time, he announced that he will make major investments in artificial intelligence research and development, and will provide NT$10 billion (about RMB 2.143 billion) in the next five years. He will fully promote the fields of AI talent cultivation, IoT industrial field application, and big data analysis. The group transformed into an AI-driven industrial Internet company.

A Foxconn insider told the First Financial Reporter that Taiwan's manufacturing industry will not be the sunset, and the real economy created will always exist. Hon Hai started from entity manufacturing and has more than 40 years of experience and technology leading the world. It will transform through the instrumentality of AI.

At the just-concluded general meeting of shareholders, Hon Hai Technology Group officially announced the launch of two AI research and incubation programs. On the one hand, the establishment of "Honhai Industrial Internet AI Application Research Institute" to help the Group develop "Industrial Internet + Robot" AI innovation, on the other hand will provide 10 billion NT dollars in 5 years, from AI talent cultivation, IoT industrial field application In the fields of big data analysis, etc., we will promote the transformation of the group into an AI-driven industrial Internet company. At the same time, we invite the American genetic scientist Clegg Fant to jointly create the “Asia-Pacific Forward-looking Health Management Service”.

Guo Taiming said that Hon Hai has started from entity manufacturing and has more than 40 years of experience and technology in the world. Through the toolability of AI, it will create an industrial Internet AI application ecosystem built by “Cloud Migration and Wisdom Network + Robot”. And stressed that investing 10 billion NT dollars is mainly used to recruit relevant talents for AI applications, deploying artificial intelligence applications at all production sites.

Unknowingly, Hon Hai, the huge manufacturing empire, is constantly approaching artificial intelligence and smart manufacturing.

Nowadays, Hon Hai is no longer the manufacturing giant that grew rapidly after the production of OEM iPhone. It is everywhere in the supply chain or value chain.

According to the relevant person in charge of Foxconn, the Hon Hai Industrial Internet AI Application Research Institute was established in Taiwan this year to help speed up the transformation of the group with cross-factory and international-level operation scale. The follow-up will be based on application needs in the United States, Japan, and China. Shenzhen, Shanghai, Nanjing, Beijing and other places established a stronghold. Moreover, Hon Hai's partners also have objects like artificial intelligence expert Wu Enda. It is understood that Wu Enda's newly established company, Landing.ai, began to cooperate with Hongteng Technology Group, a subsidiary of Hon Hai Technology Group, in July last year to promote the use of AI applications to accelerate the transformation of the AI ​​gene of the Industrial Internet.

“With regard to the investment layout in recent years, Hon Hai has long been a traditional generation industry, but is able to make customized intelligent production.” Guo Taiming said in a speech at the 2017 Guangzhou Fortune Global Forum.

Guo Taiming said at the shareholders meeting that Foxconn's goal is to become "a global innovative artificial intelligence platform, not just a manufacturing company." But referring to Foxconn, it still reminiscent of the concept of "Apple's largest mobile phone foundry" because it has more than 50% of its revenue from Apple. As the largest customer of Foxconn, Apple's every move also affects Foxconn's heart.

Hon Hai Precision's third quarter 2017 financial report shows that the company's operating income was NT$1,078.8 billion (US$35.75 billion), which was basically the same as the same period of the previous year, but the net profit attributable to the parent company was set in 2008. The biggest decline since the fourth quarter was NT$21 billion (about RMB 4.5 billion), a 39% decrease from the same period of the previous year and far below the original S$3.5 billion expected by Standard & Poor's Global Market Research. Obviously, Apple’s influence on Hon Hai is still huge.

"In fact, Hon Hai's fundamentals are very good, but it is still often affected by the news, resulting in strong foreign investment and weak domestic capital." Guo Taiming stressed at the above meeting that in the past three years, we have been thinking about how to transform. Previously, including 270 billion NT dollars to invest in Guangzhou 10.5 generation panel factory, and 3 trillion yen to grab the Japanese Toshiba semiconductor is also for the layout of AI.

"By massive data generated by 8K panel images, big data and other applications, a large amount of storage equipment is needed, and a large amount of 8K image big data can analyze useful artificial intelligence." Guo Taiming said that this is also his interest in Toshiba memory. the reason.

At the same time, he stressed that Hon Hai has been operating a light-off factory for a period of time, which can produce a lot of valuable data. Hon Hai is not just a foundry, but a structure and analysis of big data. It is a manufacturer with very close artificial intelligence. In addition, Hon Hai currently has high-speed computing centers in Shenzhen and Kaohsiung to collect production line data from factories in Shanghai, Beijing, Shenzhen, Prague, and Wisconsin, and to create smart links. In the future, Hon Hai will have the largest in the world. Industrial Internet.

The above-mentioned Foxconn insiders told reporters that the company's transformation will continue in 2018, but the transformation of a company must continue to practice, explore, and finally know whether it can be successful, which takes time to certify.

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