Foxconn signs MOUs with Silicon Valley firms

Aiming to integrate Silicon Valley's innovation capabilities with Foxconn's product R&D and manufacturing strength, Foxconn (Hon Hai Precision Industry) on November 18 had signed MOUs with three Silicon Valley-based venture capital companies, NEA, Onset and DCM as well as five Silicon-based high-tech companies Enovix, Pancetera, SiBEAM, Splashtop and Zenverge. 

Foxconn can help Silicon Valley-based high-tech enterprises test products, undertake trial production, seek clients and give financial support to commercialize their advanced technologies and product concepts, playing the role of an incubation center, the Chinese-language Economic Daily News (EDN) quoted company chairman Terry Guo as saying at the signing ceremony.

While Taiwan-based makers of electronic component and products have faced thinning gross margins due to rising labor costs in China, increasing material costs and competition, Foxconn expects the cooperation with Silicon Valley-based companies to step into advanced or new product lines to keep profitability, EDN pointed out.