Hon Hai Precision Industry Co (鴻海精密) has increased its investments in the Czech Republic and China by more than NT$6 billion (US$196 million) as part of its global expansion.
The company, known as Foxconn Technology Group (富士康科技集團) internationally, has also begun shipping electric pickup trucks produced for US brand Lordstown Motors Corp.
In a Taiwan Stock Exchange filing on Friday, Hon Hai said it has raised investments in its Czech subsidiary Foxteq CZ by US$58.98 million through its PCE Paragon Solutions Kft unit.
Photo courtesy of Hon Hai Precision Industry Co
In the Czech Republic, Hon Hai has a research-and-development center and a product design center, and it assembles monitors, cellphones, wireless communication devices and cloud servers.
The iPhone assembler has also invested 1 billion yuan (US$142.4 million) in a subsidiary in Taiyuan, China, which produces electronic components, mobile communications devices and cell phones.
The latest fund injection increases Hon Hai’s investment in the Taiyuan subsidiary to 1.5 billion yuan, the company said.
Hon Hai has in the past few years boosted its efforts to develop electric vehicles (EVs) as it seeks to broaden its product portfolio and boost its profit margin.
Lordstown last week announced that shipments of its Endurance electric pickup trucks made by Hon Hai on a contract manufacturing basis had started.
Lordstown said Hon Hai would ship the first batch of 500 trucks direct to customers after the model has received the needed certificates from the US Environmental Protection Agency and the California Air Resources Board.
Hon Hai makes the trucks at a factory in Ohio that the manufacturer acquired earlier this year from the US company for US$230 million. The plant is Hon Hai’s first EV manufacturing hub in the US. It is equipped to produce 500,000 to 600,000 vehicles per year.
In addition to the pickups, Hon Hai is planning to produce electric agriculture tractors at the plant from the first quarter of next year, after it in August signed a deal with US-based Monarch Tractor to produce next-generation electric equipment, including battery packs.
To strengthen its EV presence in the US, Hon Hai last month announced that it would increase its stake in Lordstown through a private placement.
It seeks to buy class A common shares of the company for US$70 million and series A preferred shares for US$100 million, Hon Hai said.
After the completion of the transaction, Hon Hai is expected to hold all of Lordstown’s outstanding preferred stock and 18.3 percent of its common stock, and would have the right to appoint two members of the company’s board of directors.
Through the equity investments, cooperation with Lordstown would run deeper than ever, Hon Hai said.
The US firm is expected to increase outsourcing orders to the manufacturer.
Lordstown, which began producing vehicles on a small scale in September and has over the past two years faced lawsuits from investors accusing it of fraud, is expected to join the Mobility in Harmony EV open platform led by Hon Hai.
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
NO BREAKTHROUGH? More substantial ‘deliverables,’ such as tariff reductions, would likely be saved for a meeting between Trump and Xi later this year, a trade expert said China launched two probes targeting the US semiconductor sector on Saturday ahead of talks between the two nations in Spain this week on trade, national security and the ownership of social media platform TikTok. China’s Ministry of Commerce announced an anti-dumping investigation into certain analog integrated circuits (ICs) imported from the US. The investigation is to target some commodity interface ICs and gate driver ICs, which are commonly made by US companies such as Texas Instruments Inc and ON Semiconductor Corp. The ministry also announced an anti-discrimination probe into US measures against China’s chip sector. US measures such as export curbs and tariffs
The US on Friday penalized two Chinese firms that acquired US chipmaking equipment for China’s top chipmaker, Semiconductor Manufacturing International Corp (SMIC, 中芯國際), including them among 32 entities that were added to the US Department of Commerce’s restricted trade list, a US government posting showed. Twenty-three of the 32 are in China. GMC Semiconductor Technology (Wuxi) Co (吉姆西半導體科技) and Jicun Semiconductor Technology (Shanghai) Co (吉存半導體科技) were placed on the list, formally known as the Entity List, for acquiring equipment for SMIC Northern Integrated Circuit Manufacturing (Beijing) Corp (中芯北方積體電路) and Semiconductor Manufacturing International (Beijing) Corp (中芯北京), the US Federal Register posting said. The
India’s ban of online money-based games could drive addicts to unregulated apps and offshore platforms that pose new financial and social risks, fantasy-sports gaming experts say. Indian Prime Minister Narendra Modi’s government banned real-money online games late last month, citing financial losses and addiction, leading to a shutdown of many apps offering paid fantasy cricket, rummy and poker games. “Many will move to offshore platforms, because of the addictive nature — they will find alternate means to get that dopamine hit,” said Viren Hemrajani, a Mumbai-based fantasy cricket analyst. “It [also] leads to fraud and scams, because everything is now
RSS