Entrenched market position Low cost, unrivalled vertically integrated production model Robust return on capital Prudent financial policy with modest debt usage Highly competitive market Persistent margin pressure The ratings on Hon Hai Precision Industry Co. Ltd. reflect the company's strong competitive position in the global electronics manufacturing services (EMS) industry, low cost, unrivalled vertically integrated production model, robust return on capital, and modest debt usage. The ratings are slightly constrained by the high business risks associated with the global contract EMS industry. Hon Hai is the world's largest EMS provider. The company has built an entrenched market position over the years by expanding its vertically integrated production model and strengthening its component manufacturing capabilities. As a result, it has established
