Despite spending much of 2011 mired in controversy over reports of poor working conditions, Hon Hai Precision Industry Co. and Foxconn Technology Group have announced record Q4 2011 quarterly earnings. Hon Hai's after-tax net income for the quarter was NT$35 billion (approximately US $1 billion), with consolidated revenue of NT$1.07 trillion (approximately US $35.8 billion) — both breaking quarterly records, and the first time the company's revenue topped NT$1 trillion. The company reported its full-year income, as well: 2011 after-tax income was NT$81.9 billion (approximately US $2.7 billion), with consolidated revenues of NT$3.18 trillion (approximately US $106 billion). According to CENS, a Taiwanese economic news outlet, industry executives believe that Apple's record-breaking iPhone sales and huge Q1 2012 (fiscal year) results overall played a strong roll in Hon Hai's revenue.
To go along with its huge quarter, Foxconn yesterday announced that it purchased about 10 percent of Japanese consumer electronics manufacturer Sharp, but Bloomberg is reporting that Foxconn's investment is greater than the ¥67 billion (US $809.1 million) stock purchase. Foxconn Chairman and President Terry Gao is reportedly working with "related investment companies" to purchase 46.5 percent of Sharp's display products group for another ¥67 billion, making for a total investment of ¥133 billion (approximately US $1.6 billion). Analysts believe that this is a "risky and aggressive" move for Foxconn, but also noted that the company "needs the acquisition to get advanced display technology" to continue cranking out iPhones and iPads, as well as technology from the many other consumer electronics companies Foxconn works with.