Hon Hai Forms JV With South Korea's SK C&C

   By Aries Poon 
 

TAIPEI--Hon Hai Precision Industry Co. (2317.TW), the main iPhone manufacturer, said it formed a joint venture with South Korea's SK C&C Co. (034730.SE) to provide information-technology services in China.

Hon Hai, also known as Foxconn Technology, has been venturing into higher-margin businesses that are less labor intensive in recent years, in an effort to help growth. The JV with SK C&C, a unit of SK Group, follows another deal announced Monday, where Hon Hai said it would develop smart electric cars with Chinese Internet giant Tencent Holdings Ltd. (0700.HK) and car dealer China Harmony Auto Holding Ltd. (3836.HK). The Taiwanese company is also making handset accessories under its own brand and preparing to offer telecommunications services in Taiwan.

Hon Hai said its joint venture with SK C&C will initially provide IT services to Foxconn factories in China and converged security systems to other companies in the country.

The venture, to be officially launched in May, will also explore IT opportunities in healthcare and financial technology, the statement said.

Hon Hai owns 4.9% stake in SK C&C.

Write to Aries Poon at [e-mail]

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