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Monday, September 6, 2010

Foxconn chairman halves growth target as electronics sales slow

Foxconn, the world's largest contract manufacturer of electronics, has cut its long-term growth target by half. Terry Gou, founder and chairman of the Foxconn Technology Group, is lowering the target after demand for computer equipment slowed.

A report in Bloomberg Businessweek says Mr Gou will tell managers he’s lowering Foxconn’s annual sales growth target to 15% from the 30% target that's been in place for the last decade.

Foxconn, part of Taiwan's Hon Hai Precision Industry Co Ltd, has made headlines for its scale – sales this year are expected to exceed those of its customers, which include Apple, Dell and Nokia – and for company working conditions, after at least 10 workers committed suicide this year. It plans to expand further by moving into industries such as biotechnology, nanotechnology and media content.

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