TAIWAN'S HON HAI SIGNS CO-OP ACCORDS WITH SILICON VALLEY FIRMS

Hon Hai Group, the world's largest contract electronic product maker, signed memoranda of understanding (MOUs) Thursday with venture capital firms from California's Silicon Valley to serve as an incubator for new technology development in Taiwan.

On behalf of Hon Hai, group founder Terry Gou signed the cooperation agreements with the U.S. venture capitalists, including NEA, Onset and DCM3, for future technology development and exchanges with Silicon Valley.

During the signing ceremony, Gou said the cooperation agreements were signed after more than one year of discussions and he added that Hon Hai is expected to act as a bridge between Taiwanese firms focusing on technology innovation and their U.S. counterparts.

He said the MOUs are expected to lend support financially and technically to emerging small high-tech companies in Taiwan and transform them into large ones to take on rivals in Japan and South Korea.

According to Gou, the U.S. high-tech sector has taken the global lead in technology, while Asia, with its booming purchasing power, has become a major market for U.S. high-tech products.

The Hon Hai founder said Taiwanese firms are expected to play a role in new technology testing and trial production and help U.S. firms find customers in Asia.

He added that Taiwanese companies are even able to raise funds for their U.S. partners, as new technology continues to be developed.

Gou said Taiwan is very competitive in the global high-tech sector and this status has been enhanced since the implementation of the economic cooperation framework agreement signed with China in June, an accord expected to allow Taiwan to get more business in the fast-growing China market.