Nidec starts talks with Hon Hai, Foxtron to set up JV in Taiwan
TAIPEI, NNA - Japanese electronics maker Nidec Corp. has agreed to start discussions with Hon Hai Technology Group and its subsidiary Foxtron Vehicle Technologies Co. to set up a joint venture in Taiwan for producing and selling electric vehicle motor systems.
Under the agreement, the three companies will conduct feasibility studies and proceed with negotiations with the aim of concluding a contract by the end of December 2021, the Kyoto-based company said last week.
The joint venture is planned to be established within 2022 mainly for the development, production and sale of traction motor systems and various motor-related products for automobiles, according to Nidec.
Other details about the venture such as its capital and contribution ratios by the three companies will be determined in future discussions, it said.
In March, Nidec signed a memorandum of understanding with Foxtron to join hands in developing EV drive systems and has since continued joint development to supply products equipped with Nidec's traction motor system for Foxtron's customers.
In moving forward the alliance, the three companies have decided to establish the joint venture to ensure a stable supply of traction motors and other automobile motors for Hon Hai and Foxtron while expanding Nidec's sales opportunities to markets and customers of the Taiwanese companies, the Japanese maker said. (NNA/Kyodo)