These three industries have a large existing market scale, more than USD 3 trillion. In addition, the compound annual growth rate (CAGR) is high, averaging more than 20%. Hon Hai's own industrial experience and technology advantages will foster future development and growth.
Hon Hai's foray into electric vehicles meet the needs of customization and rapid product development with a full-service business model consisting of complete vehicle design, key components, global manufacturing and supply chain services. In the future, the company will focus on adapting global best practices for local markets, leveraging local resources in partnership with local authorities and businesses, implementing BOL (build-operate-localize) mode, to expand our electric vehicle development and footprint.
With the onset of the pandemic, coupled with an ageing society, physical health has become a critical issue for every person, family, community, city and country. The needs for robust healthcare solutions will continue to grow, as seen from the unprecedented pandemic, and a growing ageing population. The health industry will need to continue to digitise, and tap on technologies like software, big data and wireless communication. Hon Hai is committed to supporting these needs in the health industry with an integration of hardware and software and using its core capabilities such as precision assembly, opto-mechatronics, key component development, and semiconductor packaging and testing.
With an ageing population and low birth rate, the cost of labor acquisition will increase year by year, bringing about a greater need for the use of robotics manufacturing. Hon Hai will continue the research and development of industrial robots to foster the growth of the mobile robot industry. Apart from investing in key robot technologies, Hon Hai will also establish a robotics manufacturing platform to help customers tap on such technologies and bring about a greater convenience for many in the society.
The three core technologies are "artificial intelligence, semiconductor and next-generation communication". The development of these three technological fields will strengthen the Group's competitive edge in development of the ICT industry. We have been investing in forward-looking research and development of these three core technologies, establishing three dedicated research institutes under Hon Hai Research Institute, building an alliance and partnership network, and setting up joint ventures and acquisitions to continuously improve the technological development.
Through the establishment of a dedicated software R&D center, Hon Hai continues to promote the development of software-defined enterprises and vehicles and to develop relevant open platforms to share AI data, AI algorithms and AI models with the industry. In the development of next generation smart electric vehicles, Hon Hai has been focusing on the fields of autonomous driving, intelligent gateway and intelligent cockpit—capitalising the use of AI. Hon Hai Artificial Intelligence Research Institute focuses on exploring the computer vision and scene understanding and how the technologies can be better applied in new energy vehicles, digital health and robotics.
The strategic principles of Hon Hai's semiconductor development are: transformation, technology, autonomy and intelligence. We strive to create product differentiation through self-specification and form alliances with international major manufacturers for in-depth cooperation in product, technology and manufacturing capability. The development of the semiconductor business is based on four core strategies: providing stable small ICs, co-designing its own ICs, developing key technologies independently, and building diversified manfacturing capacity. Through the establishment of the Semiconductor Research Institute, Hon Hai is empowered to develop the integration of third generation semiconductor technology and advanced silicon optoelectronics technology for future new energy vehicles and robotic products.
From 2020 to 2030, 5G will be migrating to B5G (Beyond 5G), the next generation of communication technology will create unlimited opportunities. We strive to connect electric vehicles through the V2X technology, enhancing the ideal future of autonomous driving, use the NTN (Non-Terrestrial Network) connected by LEO Satellites, to provide low-delay connections anytime, anywhere. Hon Hai has also set up a research institute to focus on the development of B5G/6G wireless communication network technology and its potential application in the group's future products, including new energy vehicles and robots.