Hon Hai Precision Industries, known as Foxconn, grew to vast scale by helping build Apple’s iPhone into a world leader. But with the introduction of the iPhone 6 in late 2014, Foxconn saw its good fortune start to reverse. Competitor Pegatron grabbed a chunk of iPhone assembly work and smaller firms also won away some of its phone case manufacturing role. Then the summer of 2015 saw a huge slowdown in smartphone sales and weakness across the Chinese economy. It was also a year of diversification, as CEO Terry Gou pledged to build a $5 billion factory in western India, with plans for possibly a dozen more to follow. As the year came to a close, Gou signaled vague interest in troubled Japanese electronics firm Sharp — interest that grew more intense and turned into a bid for the company in 2016.
News about Hon Hai Precision Industry
China’s largest tech firms join other major names that are buying into the unit of Hon Hai Precision Industry.
The deal will require regulatory scrutiny.
Republicans say a proposed plant will bring jobs, critics say it's rushed and could be damaging.
Along with its supplier Foxconn.
A failure to complete the sale, approved today, could wipe out shareholder equity.