Gadgets & Electronics, Security, Software

Hon Hai Will Build IT Service JV In Mainland China With SK Group

Taiwan's Hon Hai Precision and South Korea's SK C&C, a subsidiary of SK Group, will establish a joint venture to provide information technology services in mainland China.

Hon Hai said that the joint venture will first provide information technology services to Hon Hai's plants in mainland China and offer integrated security systems to other companies in mainland China. According to Hon Hai, the joint venture, which will be formally launched in May 2015, will also explore information technology business opportunities in medical and financial sectors.

At present, Hon Hai owns a 4.9% stake in SK C&C.

To promote enterprise growth, Hon Hai has been developing businesses with lower labor intensity and higher profit over recent years. Prior to the establishment of the joint venture, the group announced a deal to develop smart electric cars along with Tencent and China Harmony Auto. In addition, Hon Hai is making own-branded mobile phone accessories and prepares to provide telecom services in Taiwan.

The joint venture total investment and stake splits were not released.

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