Taiwan's Foxconn unit to team up with Taiwan Mobile

September 26, 2014 | 09:13

(0) user say

Foxconn, the world's biggest electronics components maker, said in a statement that the collaboration with Taiwan Mobile will enable them "to become the joint new leaders in Taiwan's telecom industry".

File photo: Taiwanese electronics giant Hon Hai's (Foxconn) headquarters in Tuchung in northern Taiwan. (AFP/Patrick Lin)

TAIPEI: Taiwan's technology giant Foxconn said Thursday (Sep 25) its subsidiary will team up with local telecom provider operator Taiwan Mobile as it aims to become a leader in the island's telecom sector.

Foxconn's telecom unit Ambit Microsystems Corporation will sell part of its fourth-generation (4G) mobile spectrum to Taiwan Mobile for NT$3.43 billion (US$114 million), as well as a 14.9 per cent stake to the local carrier for NT$2.98 billion, pending approval from authorities, the companies said.

Foxconn, the world's biggest electronics components maker, said in a statement that the collaboration with Taiwan Mobile will enable them "to become the joint new leaders in Taiwan's telecom industry".

Since branching into the telecom sector, Foxconn has invested about US$365 million to obtain a 4.9 per cent stake in SK C&C Co., a information technology service provider and a unit of South Korea's third largest conglomerate SK Group, the statement said.

In the face of growing competition and narrowing margins, Foxconn, also known as Hon Hai, has been diversifying its businesses into other fields, among them providing 4G telecom services in Taiwan. Foxconn assembles products for Apple - including the iPhones - as well as Sony and Nokia.

Ambit plans to offer 4G mobile services in Taiwan later this year or in early 2015.

AFP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional