Why is the Czech Republic the key for Taiwanese factories to enter Europe? Hon Hai has exhibited his “geographic location” advantage over 20 years of deep cultivation. | TechOrange



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(This article was reproduced with the permission of the partner central news agency, and agreed with TechOrange to write a revised guide and title. The original title is “Taiwan factory goes to Czech Republic to invest and create new route of silk to the European market “.

[Por qué elegimos este artículo]On this occasion, the Czech delegation came to Taiwan and expressed great interest in Taiwan’s ICT industry, industrial automation equipment, logistics and automobile transportation. However, Taiwan’s investment in the Czech Republic can also be seen. What are the advantages?

Hon Hai Group, a major domestic manufacturer of foundries, has established factories in the Czech Republic since 2000 and has become the second largest exporting company in the Czech Republic. What are the advantages that other Taiwanese companies planning to establish factories in the Czech Republic can refer to? (Editor in charge: He Tailin)

The President of the Czech Senate, Vitzi, led a delegation to visit Taiwan, allowing Taiwanese factories to pay more attention to the investment environment in the Czech Republic. The Ministry of Economy analyzed that the Czech Republic has three main advantages: a solid industrial base, low wages and land costs, and membership of the EU. The industry also believes that geographic advantages are also Factors to consider in attracting industry players to invest.

Miloš Vystrčil led a delegation that visited Taiwan from August 30 to September 4. The delegation consisted of about 90 members, including scientific researchers, parliamentarians, representatives of culture, business and the media. It has also been the Czech Republic since the Velvet Revolution in 1989. The highest level delegation visiting Taiwan.

According to data from the Ministry of the Economy, the Czech Republic is Taiwan’s fourth largest investor in Europe, and its investment scale is surpassed only by Germany, the Netherlands and the United Kingdom. As of September 2019, there were 25 Taiwanese investment projects in the Czech Republic, with a total value of 16048. Taiwan’s bilateral trade volume last year was almost US $ 820 million, and Taiwan enjoyed a trade surplus of 89 , 78 million US dollars.

Hon Hai sees 4 advantages of the Czech Republic and has become the second largest exporting company since its investment in 2000

Hon Hai Group, a major national foundry manufacturer, has been investing in the Czech Republic since 2000. According to Hon Hai’s 2019 annual report, at the end of April this year, Hon Hai Group has 9 locations in the Czech Republic, in the central city of Pardubice (Pardubice). It is the headquarters of the Hon Hai Group in the Czech Republic and Europe; Hon Hai Group also has a factory in Kutná Hora, Czech Republic.

According to industry sources, based on a general observation, Hon Hai Group chose the Czech Republic as its European headquarters. There are four main factors. First, the Czech Republic is located in the center of Europe and has geographical advantages. The Czech Republic is not far from Germany, which can save transportation costs. At the same time, the Czech Republic is the core. The Hon Hai Group also has manufacturing and production bases in neighboring countries such as Hungary and Slovakia.

Second, since the Czech Republic joined the European Union in 2004, it has become an integrated market with the Eurozone and has become a bastion for Taiwanese manufacturers to attack the European Union market. Furthermore, the Czech Republic has a strong industrial base and strong technical expertise in wireless communications. In addition, the average cost of Czech labor is also lower than other EU member states and helps Hon Hai Group control labor costs.

Until now, Hon Hai Group has become the second largest exporting company in the Czech Republic. Hon Hai Group currently employs more than 4,000 employees in the Czech Republic. It has established R&D and design centers, fully automated production plants, and established a data center. Operational projects include wireless communications, mobile phones, and confidentiality. Machinery, cloud, display, etc.

Establishing a consumer electronics factory in the Czech Republic will have an “industry pool” effect

The Acer Central Europe Branch computer brand factory is located in Prague, Czech Republic, is primarily responsible for the business and marketing of Acer products in Central European countries and has its roots in the Czech Republic for many years . The Czech delegation will visit Acer Xizhi headquarters. He is expected to be personally received by Acer Chairman Chen Junsheng. The stay will last around 1 hour.

Another well-known Taiwanese consumer electronics manufacturer considered its global distribution and growth. In 2004, it invested 20 million euros (about NT $ 700 million) to establish a plant in the Czech Republic as a European production and customer service center and repair center, creating around 1,300 job opportunities and enjoying incentives for investment such as exemption from corporate income tax and subsidies for job creation.

In addition to serving nearby customers, the establishment of a large consumer electronics factory in the Czech Republic also helps create a clustering effect, attracting other information technology manufacturers to invest in the Czech Republic, which it is indicative of the strategic design of the supply chain transfer.

(This article was reprinted with the permission of the partner central news agency and it was agreed with TechOrange to write a revised guide and title. The original title is “Taiwan factory going to the Czech Republic to invest and create a new route of the silk to enter the European market “, the first source of the image: Pexels).

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