As per Digitimes Report, Foxconn Electronics (Hon Hai Precision Industry) has decided to join hands with CTBC Financial Holding to set up an industry fund specifically for investing in companies engaged in electric vehicles (EVs) . This step has been undertaken to boost development of EV-related industry sectors in Taiwan.
The Company manufactures connectors for use in PCs in Taiwan, and also manufactures connectors and cable assemblies worldwide. The Company also manufactures enclosures, primarily for desktop PCs and PC servers.
As per Foxconn chairman Young-way Liu , the fund will combine Foxconn’s manufacturing capability and experience with CTBC’s financial expertise in capital market. As growing environmental concerns have brought about changes to the car manufacturing industry, the establishment of the fund is timely and meaningful.
The fund will raise NT$5-10 billion (US$179-358 million) initially from institutional investors, possibly including the Taiwan government’s National Development Fund.
Investment targets for the fund will be local and overseas companies, including startups, engaged in development of technologies concerning EVs, including autonomous driving, hardware/software platforms, smart machinery and green energy, or production of EV components or EVs. In addition, the fund aims to help Taiwan-based electronics, ICT and automobile makers enter international EV supply chains.
As the fund aims to promote development of EV-related industries in Taiwan, priority in investment will be given to Taiwan-based companies initially, including members of the Foxconn-led MIH Alliance.
Foxconn has selected EVs, robots and smart medical/health care as the three target industries to focus on in its future development.
The fund would “accelerate the rate of development” of EV companies by providing not just funding, but technical support, Hon Hai chairman Young Liu indicated in the statement.
Foxconn, also known as Hon Hai Precision Industry Co Ltd, is the world’s largest electronics contract manufacturer headquartered in Tucheng, Taiwan, and is best known globally as the manufacturer of Apple’s iPhones and iPads. It is the world’s largest electronics contract manufacturer, and the fourth-largest information technology company by revenue.