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 aries.poon@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires