Hon Hai gearing up to tap auto, EV field
TAIPEI, NNA – Hon Hai Precision Industry Co., the world’s largest electronics contract manufacturer, and major Taiwanese automaker Yulong Motor Co. have joined hands in the research and development of automobiles.
The move comes after Taiwan-based Hon Hai said last month it would start discussions with Fiat Chrysler Automobiles NV on establishing an electric vehicle manufacturing joint venture in China.
Hon Hai and Hua-chuang Automobile Information Technical Center Co. (HITEC), an R&D arm of the Yulong group, plan to form a local unit with a capital of 15.6 billion New Taiwan dollars ($518 million) for R&D and design of cars and common vehicle platforms, Taiwan’s Economic Times reported
The electronics maker will hold a 51 percent stake for NT$7.63 billion in cash in the joint venture, and HITEC will own the remaining 49 percent for investment in kind, according to the report.
The timing of the joint venture establishment was not disclosed. The two groups hope to bring together their technical expertise in electronic parts and automobiles, respectively.
This partnership would help Hon Hai gear up to tap into the EV field, Hon Hai Chairman and CEO Liu Young-way was quoted by the report as saying.