Foxconn may move into solar manufacturing sector - report

Aug 14, 2013 - Taiwan-based Hon Hai Precision Industry Co (TPE:2317), also known as Foxconn Technology, is mulling entering the solar manufacturing segment and will make a decision by the end of 2013, spokesman Simon Hsing told Reuters.

The company, which already has a small photovoltaic (PV) panel plant in eastern China, is considering adding more capacity in the country. It has been observing the sector for two years, according to the report. If Foxconn goes ahead with the China solar plan it may actually make it at the right time as the solar sector is showing signs of revival after several tough years, Reuters said, citing unnamed analysts.

The solar move will help Foxconn reduce its dependence on Apple (NASDAQ:AAPL) after the US technology giant brought 60% of the Taiwanese company’s revenues in 2012, Reuters noted. The news agency pointed out that the strengths that attracted Apple -- Foxconn’s assembly efficiency, good cost-control and global presence -- can turn the potential venture into solar manufacturing into a success.

In April US solar company SunEdison Inc (NYSE:SUNE) awarded a PV module manufacturing job of up to 350 MW to Foxconn. SunEdison’s Singaporean arm struck the manufacturing services agreement with the Taiwanese firm’s PV business arm Fox Energy and the latter is producing modules under the US company's Silvantis line in its factory in Juarez, Mexico.

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