US VC firms link with Foxconn holder Hon Hai
Three California-based venture capital firms have linked with Taiwan’s Hon Hai Precision Industry Co. - the world’s largest electronic manufacturing company and owner of the embattled Foxconn International Holdings - to aid the development of new products in the future, Hon Hai Chairman Terry Gou announced.
Hon Hai has specifically signed an MOU with DCM, New Enterprise Associates and Onset Ventures, Gou said, that enables the firms' portfolio companies and Hon Hai to share access to new technology products, processes and know-how. Global reports suggest that this is the first deal of its kind for Hon Hai, which was founded in 1974.
The firm came under public duress earlier this year after 10 Foxconn employees committed suicide while working at its Shenzhen production facility, attributed to poor living and working conditions and low compensation. The situation prompted the company to raise worker salary by 30%. Hon Hai and Foxconn is the key manufacturer of products for companies including Apple, Dell, Hewlett-Packard and Nokia.
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