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To: Dan3 who wrote (136735)	6/5/2001 10:04:07 PM
From: puborectalis	Respond to of 186894

Hon Hai Precision to Replace TSMC as Taiwan's Largest Manufacturer June 5, 2001 (TAIPEI) -- Hon Hai Precision Industry Co., Ltd. is expected to become the largest manufacturer in Taiwan, if its sales reach NT$150 billion this year, exceeding the NT$149 billion estimated sales of Taiwan Semiconductor Manufacturing Co., Ltd (TSMC). CMM, an abbreviation for "component module move," is an innovation introduced by Hon Hai's chairman, Kuo Tai-ming, to enable the company to rank as the world's largest component contract manufacturer. Kuo said at a press conference on May 31 that the company would have no problem generating sales of more than NT$100 billion this year. Kuo would not offer an exact sales prediction, but he said that sales growth this year would outperform that of the industry. Hon Hai is the world's largest maker of so-called barebone PCs. Shrugging off the slowdown in the worldwide economy, Hon Hai reported sales of more than NT$40 billion in the initial four months of 2001. If Kuo's prediction comes true that the company's monthly sales will reach NT$10 billion before the end of the year, Hon Hai will enjoy full-year sales of NT$120 billion at least. Optimists predict that Hon Hai will rack up sales of NT$150 billion this year, above TSMC's sales forecast of NT$149 billion. They base their analysis on the hope that the traditional boom season of the electronics industry, usually in the second half of the year, will contribute as much as 60 percent of the full year's sales, as it has often done in the past. Also, they note that Hon Hai's sales in the past decade have shown compound growth of 51 percent. Kuo more than once described Hon Hai as a "solitary wild goose in freezing winter" at the press conference, implying that the company would thrive in adversity. Kuo said Hon Hai had no fear of a bleak economy, but saw it as a good chance to train itself. He even said that Hon Hai was confident of bringing monthly sales up to between NT$15 billion and NT$20 billion in the near future. Kuo said that his invention, CMM, had satisfied his expectations. Recently, Hon Hai has won orders away from leading EMS companies, successfully attracting important clients from the global IT community, including Dell Computer Corp., Compaq Computer Corp., IBM Corp., Hewlett-Packard Co., Intel Corp., Apple Computer Inc., Cisco Systems Inc., Legend Computer Ltd., Sony Corp., Nokia, Motorola Inc., and others. With its outstanding performance, Hon Hai has decided to use CMM as its core strategy. (NT$34 = US$1) Related story: Hon Hai Cuts Dividend to NT$3.5, A Seven-Year Low (Commercial Times, Taiwan)