The best-known company for the manufacture of iPhones, Foxconn, will soon be the company behind some of the most popular routers and other computer accessories. A subsidiary of Foxconn, Foxconn Interconnect Technology, announced today that it will acquire Belkin, which also owns the Linksys and Wemo brands.
Belkin has been around for 35 years and today is known for creating a variety of accessories for computers and telephones, including wireless chargers, laptop bases and phone cases. Belkin bought Linksys, which is well known for its domestic routers, in 2013. And it has been running an intelligent home system called Wemo for more than five years.
That is a major change for Foxconn, which goes from being a behind-the-scenes manufacturing partner to the owner of three major consumer brands.
Foxconn will pay $ 866 million in cash to acquire Belkin. The Financial Times notes that the purchase must be subject to the approval of the US Foreign Investment Committee. UU., Which means that it's not a done deal yet. Since other high-profile foreign acquisitions have been closed under the Trump administration, this purchase should not be considered safe. That said, Foxconn has committed to building a $ 10 billion factory in Wisconsin, which will likely put her on the side of management.
Foxconn Interconnect Technology is a subsidiary of Foxconn that focuses on the construction of cables and connectors, many of which are not focused on the consumer. That again makes it look strange, but it makes sense when looking at the company's larger image.
Since the beginning of this year, Foxconn has been expressing its desire to diversify and diversify its businesses, so it does not depend so much on the iPhone. It is said that half of its sales come from Apple, so if Apple changed partners or if the iPhone lost popularity, the company could have difficulties. Foxconn's plan to fix that, of course, is to take on a task similar to Apple's: sell directly to consumers.