Foxconn, the giant Taiwanese contract manufacturer, is seeking to diversify its business model and chase new profit streams. It is set to make its own devices, rather than just gadgets for customers, and it is venturing into mobile networks.
The company acquired a 4G licence in Taiwan’s recent auction and is now buying a $390m stake in cellco APT (Asia Pacific Telecom). This will enable it to offer mobile data services and there is the potential to support an integrated model in which mobile access is bundled with a Foxconn handset or tablet, Amazon Kindle-style.
In a recent interview, Foxconn chairman Terry Gou said the company wants to use Taiwan as a showcase ‘to prove that we can offer integrated hardware, software, content and services’.
Foxconn will be able to merge its newly acquired spectrum holdings with those of APT, which also bought new licences in the 4G auction, in order to create a more powerful network. The manufacturer has filed the paperwork with Taiwanese regulators to merge its subsidiary Ambit Microsystems (which technically holds its licence) with APT.