Foxconn Industrial Internet buying big stake in Digital China Software for $79 mil.
TAIPEI, NNA - Tech giant Foxconn Industrial Internet Co. (Fii) is buying a 15.19 percent stake in Digital China Software (BVI) Ltd. for 559 million yuan ($79.6 million).
The Taiwanese firm will become the largest shareholder in Shenzhen-listed Digital China Software, which provides technology services such as system integration to manage business activities and technology development.
Fii, a subsidiary of Foxconn Technology Group, is a leading design and manufacturing service provider of communication network equipment, cloud service equipment, precision tools and industrial robots, offering businesses with intelligent manufacturing services.
Fii and Digital China Software will harness their expertise to push forward in areas of industrial automation, software, big data and artificial intelligence to develop advanced intelligent industrial system, a Fii official told NNA on Monday.
Fii aims to leverage Digital China Software’s strengths in industrial software design, innovation and operation to bolster the development of operational technology and information technology, according to the official.
Fii plans to secure two board seats in Digital China Software as part of the deal, the company said in a filing to the Taiwan Stock Exchange on Sunday.
Digital China Software is a joint venture between Taiwan’s Data Systems Consulting Co. and China’s Digital China Group Co., a China-based company that provides information technology products, technology solutions and related services.
With years of operating in the greater China area and Southeast Asia, Fii expects to expand its global presence in intelligent manufacturing and industrial networking solutions, according to a report by Taipei news outlet Anue.com.
Shenzhen-based Fii made a net profit of 18.6 billion yuan ($2.62 billion) in 2019, up 10.1 percent year on year.
The bulk of its revenues came from the communication and mobile network equipment business, followed by cloud computing and the rest from technological services such as industrial internet, precision tools and industrial robots.
Fii is building a new ecosystem of “advanced manufacturing + industrial Internet”, with technological platforms centered on cloud computing, mobile terminals, Internet of Things (IoT), big data, artificial intelligence, high-speed networks and robots, according to its website.
Recently, Fii managed to obtain regulatory approval to make ventilators for Medtronic in the United States which is fighting a worsening coronavirus pandemic.
Listed Foxconn Technology Group is formally known as Hon Hai Precision Industry Co., the world's largest contract electronics manufacturer and a major supplier for Apple Inc.