In a strategic move to deepen its involvement in the burgeoning Electric Vehicle (EV) market, Hon Hai Precision Industry Co., Ltd., also known as Foxconn, announced a substantial investment of 500 million yuan (approximately NT$2.198 billion) in the China Yibin Harmony Green Industry Fund. This decision is seen as a dual focus on bolstering its presence in China’s Environmental, Social, and Governance (ESG) industry and expanding its electric vehicle business.
Hon Hai will engagein this venture through its subsidiary, Futaihua Industry, based in Shenzhen, China. This move will grant Hon Hai a 5.4645% stake in the fund. The investment in the Yibin Harmony Green Industry Fund is part of a larger strategy, as Hon Hai plans to increase the fund’s total capital from 8.65 billion yuan to 9.15 billion yuan (approximately NT$38 billion to NT$40.2 billion).
The Yibin Harmony Green Industry Fund, established in October 2022 in Yibin City, Sichuan Province, is supported by shareholders predominantly from Chinese companies specializing in green energy and ESG technology. This includes significant players like Tibet Jinxu Enterprise Management, Guangzhou Industrial Investment New Energy Special Fund of Funds, and Yibin Development Venture Capital. The fund focuses on investments in industrial resources, clean energy, smart manufacturing, and semiconductors.
Additionally, Hon Hai’s commitment to the electric vehicle sector is further solidified by its subsidiary, Foxconn EV Technology Inc., which recently increased its capital investment in Foxconn EV System LLC by US$14.6 million (approximately NT$450 million). This subsidiary has made significant strides in the EV market, including the acquisition of the Lordstown Motors factory in Ohio, USA. The repeated capital injections into Foxconn EV System LLC demonstrate Hon Hai’s persistent efforts to expand its global footprint in the electric vehicle landscape.
Through these strategic investments, Hon Hai is not only reinforcing its commitment to sustainable and environmentally friendly technologies but is also positioning itself as a key player in the global shift towards electric vehicles. This aligns with the broader industry trend of integrating ESG considerations into business models, especially in the technology and automotive sectors.
