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, and modest debt usage. The high business risks associated with the global contract EMS industry slightly constrain the ratings. As the world's largest EMS provider, Hon Hai has an established a strong customer base including major global players for a wide range of electronics products, which partly offsets the risk of customer concentration. Hon Hai has built an entrenched market position by expanding its vertically integrated production model and strengthening its component manufacturing capabilities. In our view, Hon Hai's leadership in technology and service offerings will continue to support its
