Hon Hai Precision Industry Co (鴻海精密) has been shifting its focus toward developing quantum technology, which it sees as vital to creating Taiwan’s next miracle in the semiconductor industry, the company said on Saturday.
In its first quantum technology forum held in Taipei, Hon Hai chairman Young Liu (劉揚偉) said the company, also known as Foxconn Technology Group (富士康科技集團) in the global market, established a quantum computing research institute in June as part of its efforts to enter the field.
When he first heard of quantum-powered computers in 2014, Liu did not know exactly what the technology was, he said, adding that it was not until November last year that he began to learn about its use in blockchain applications and Hon Hair started putting resources toward it.
Photo: CNA
In the field of physics, a quantum is the minimum amount of any physical entity involved in an interaction.
As of September, US$21.9 billion had been invested globally in quantum technology, Liu said, adding that the Ministry of Science and Technology has pledged to invest NT$8 billion (US$282 million) in quantum technology development over the next five years.
Hon Hai’s quantum technology institute would develop advanced core technologies over the next three to seven years, Liu said.
“Driven by quantum technology development, Taiwan’s electronics sector will enter a new era,” said Liu, who had led the company’s semiconductor initiatives before he was appointed chairman last year. “With the new technology, Taiwan will create a miracle in its semiconductor industry.”
One of the initiatives of Hon Hai’s quantum computing research institute is its Q-Hub lab project, which was launched in collaboration with National Taiwan University’s physics department, Liu said, adding that Chung Yuan Christian University has also been working with Hon Hai to offer quantum technology-related courses.
The quantum technology institute is expected to collaborate with public, private and academic sectors to build Taiwan’s capability in the area and work with a pool of 60 experts in the field, he said.
On the business outlook for the global information communication technology sector next year, Liu said he was upbeat about emerging technologies such as 5G applications, servers and electric vehicles in the first half of the year.
However, the development of the global economy would depend largely on the effectiveness of COVID-19 vaccines, he said.
In the past few years, Hon Hai has been working to expand from solely hardware manufacturing into software development, to boost its profitability, Liu said.
In the initial phase of diversification, Hon Hai’s gross margin is expected to increase by 1 percentage point to 7 percent, and when the upgrade is completed, the margin will likely rise to 10 percent by 2025, he said.
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