Tech firms SoftBank, Foxconn come together for a joint venture
The Dollar Business Bureau
Japanese multinational SoftBank Group Corp and Taiwanese electronics major Foxconn Technology Group, earlier Hon Hai Precision Industry Co Ltd, said on Friday that they would together launch a joint venture, strengthening ties between Asia's two biggest technology companies.
This move will provide Foxconn 54.5% stake in one of SoftBank's existing subsidiaries for about $600 million. This comes as the two groups increase investments in the technology segment and considering expansion in the US.
As per the arrangement of the joint venture, a subsidiary of Foxconn will invest nearly $600 million in lieu of a majority holding in SoftBank Group’s arm, Capital Apac Pte Ltd. This arrangement will effectively transform what had been a fully-owned subsidiary of Softbank into a joint venture, the companies revealed in a statement.
Softbank and Foxconn have done business for years together. In December 2016, the two companies revealed their plans on possibly increasing investment in the US after a meeting between Masayoshi Son, the billionaire CEO of SoftBank and Donald Trump soon after he was elected as the President of US.
Foxconn is the largest contract manufacturer of electronics in the world, based in Tucheng, Taiwan, and is also best known worldwide as the manufacturer of iPads and iPhones for Apple.
SoftBank Group Corp, earlier known as SoftBank Corp, is a holding company engaged in several businesses in the IT. Its segments include Domestic Telecommunications, Sprint, Yahoo Japan and Distribution.