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Foxconn VC invests $98m in Taiwan Mobile

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Hongyang Venture Capital Investment, a corporate investment arm of electronics manufacturer Foxconn Technology Group, has invested NT$2.98 billion ($98 million) in local telecom operator Taiwan Mobile.

According to a regulatory filing, Hongyang has acquired 31.97 million shares of Taiwan Mobile at NT$93.2 apiece. This represents a 0.93% stake in the company.

The move is part of effort to enhance the two companies' cooperation with the 4G mobile network built out. Last month, locally-listed Taiwan Mobile said it would buy part of a 4G mobile business owned by Ambit Microsystems, a telecom unit owned by Foxconn, and take a 14.9% stake in the local carrier for NT$2.98 billion. The transaction is pending regulatory approval.

In the face of growing competition and narrowing margins, Foxconn, also known as Hon Hai Precision Industry, has been diversifying its businesses into other fields. Foxconn assembles products for Apple iPhone as well as other electronic products.

Last month, the Taiwanese conglomerate committed $2 million for a 10% stake in AirSig, a local mobile authentication start-up. Earlier this year, it teamed up SingTel Innov8 to invest $3 million in a Singapore-based video analytics firm KAI Square.

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