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Hon Hai to open display R&D center in Japan

Best known as a supplier to tech players like Apple, the Taiwan-based company is setting up a new R&D center to build up its display business, says Reuters.

Jay Greene/CNET

Hon Hai is trying to expand beyond its role as a parts supplier to tech companies by devoting more research into display panels.

The company announced today that it will set up a new R&D center in Japan to focus on display and touch panels, according to Reuters. Any new technologies created at the center will be used for consumer, commercial, and medical products, Hon Hai said.

The new Japanese center will mark the company's third R&D facility in Asia, following one in Taiwan and another in China. Hon Hai said it plans to consolidate technical resources among the three centers.

"We choose Japan to build the display R&D center because it has the proximity to the Sakai plant and it is the hub for our display business," Hon Hai spokeswoman Laura Liu said, according to Reuters.

Also known as Foxconn, Hon Hai has gained a name for itself by supplying parts to Apple and other large technology firms. But with margins in the component manufacturing business relatively low, the company has been seeking other avenues for generating revenue.