Hon Hai Precision Industry Co (鴻海精密) has secured regulatory approval for two investment plans in India and the US worth more than US$2.2 billion, the Department of Investment Review under the Ministry of Economic Affairs said yesterday.
The department said it has approved a plan by Hon Hai, also known as Foxconn Technology Group (富士康科技集團), to spend about US$1.49 billion to raise investments in its subsidiary in Singapore — Foxconn Singapore Pte Ltd.
The Singapore subsidiary will use the funds to invest in another Hon Hai unit called Yuzhan Technology (India) Private Ltd in India, to build a new facility to roll out smartphone components, the department said.
Photo: I-Hwa Cheng, AFP
Amid trade fractions between the US and China, Hon Hai is believed to be diversifying its production out of China with India seen as an ideal destination to make iPhones and iPhone components, and the new investment in Yuzhan Technology (India) is part of its efforts, analysts said.
In addition, Hon Hai has also obtained the greenlight from the ministry to allocate US$735 million from its disposal capital to set up a new company in the US — Project ETA (DE) LLC — which will be in charge of data center module production as well as server assembly businesses.
As Hon Hai expands globally, it has been extending its reach in production to countries and regions such as the US, India, Mexico, Vietnam, and Europe.
Through regionalized manufacturing, Hon Hai has 223 plants and offices in 24 countries around the world with 54 footholds in the Americas, 12 in Europe and 12 in India.
Meanwhile, the ministry said Cathay United Bank Co (國泰世華銀行), a banking arm of Cathay Financial Holding Co (國泰金控), has obtained approval to invest US$160 million in its branch in Ho Chi Minh City for the Vietnamese outlet’s lending business.
In addition, the ministry said AUO Mobility Solution Corp (友達智慧移動), a wholly owned subsidiary of flat panel maker AUO Corp (友達), has been approved to remit US$20 million to invest in its subsidiary in China’s Xiamen, which produces automotive display components, other auto parts and accessories.
As for inbound investments, the ministry said Hong Kong-based Royal Seal Holding Co (合璽醫療器材) has secured the greenlight to invest about NT$97.07 million (US$3.29 million) in its branch in Taiwan for the Taiwanese outlet’s tumor radiological treatment business. Cowealth Medical Holding Co (合富醫療控股), which is listed on the local over-the-counter market, is a major shareholder of Royal Seal.
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