The long-term credit rating on Hon Hai Precision Industry Co. Ltd. reflects the company's strong cost competitiveness, consistent record of solid operating performance, and satisfactory financial profile, as well as a favorable industry trend toward outsourcing. However, these factors are moderated by Hon Hai's high degree of customer concentration, exposure to rapid product cycles in volatile end markets, and challenges associated with managing rapid growth, as well as ongoing pricing pressure in the highly competitive EMS industry. Hon Hai is a global provider of PC components and electronic manufacturing services (EMS) for original equipment manufacturers (OEMs). The company's sales increased by 50% year on year to around US$4.2 billion in fiscal 2001 despite a drop in demand in its major
