Hon Hai and Foxtron Starts Discussions on Establishing Joint Venture with Nidec

Hon Hai Technology Group (the “Company” or “Hon Hai”) (TWSE: 2317) announced that the Company with its subsidiary Foxtron Vehicle Technologies Co., Ltd. (“Foxtron”) has agreed to start discussions on establishing a joint venture in Taiwan with Nidec Corporation (“Nidec”) (TSE: 6594; OTC US: NJDCY).

The three companies’ agreements regarding the JV as of now are as follows; Hon Hai/Foxtron and Nidec will conduct feasibility studies and contract negotiations with the aim of concluding a joint venture establishment agreement by the end of December 2021. The JV will be headquartered in Taiwan and will be established within 2022. In addition, the main business of the JV will be on the development, production and sales of traction motor systems and various motor-related products for automobiles. Other details will be decided in future discussions among the three companies. It may be partially changed by discussion.

On March 18, 2021, Foxtron signed a memorandum of understanding with Nidec regarding its strategic alliance in the development of electric vehicle (EV) drive systems. Foxtron and Nidec have continued joint development to supply products equipped with Nidec’s traction motor system E-Axle for customers all over the world. Moving forward to prepare the productions further, Hon Hai/Foxtron and Nidec have come to consider establishing the JV. The JV aims to ensure a stable supply of traction motors and other automobile motors for Hon Hai/Foxtron, and to expand sales opportunity of new markets and customers for Nidec. Also, the Company expects that the JV will greatly contribute to the business expansion and growth of all companies related to the JV.

Hon Hai Technology Group (the “Company” or “Hon Hai”) (TWSE: 2317) today announced that the Company with its subsidiary Foxtron Vehicle Technologies Co., Ltd. (“Foxtron”) has agreed to start discussions on establishing a joint venture in Taiwan with Nidec Corporation (“Nidec”) (TSE: 6594; OTC US: NJDCY).

The three companies’ agreements regarding the JV as of now are as follows; Hon Hai/Foxtron and Nidec will conduct feasibility studies and contract negotiations with the aim of concluding a joint venture establishment agreement by the end of December 2021. The JV will be headquartered in Taiwan and will be established within 2022. In addition, the main business of the JV will be on the development, production and sales of traction motor systems and various motor-related products for automobiles. Other details will be decided in future discussions among the three companies. It may be partially changed by discussion.

On March 18, 2021, Foxtron signed a memorandum of understanding with Nidec regarding its strategic alliance in the development of electric vehicle (EV) drive systems. Foxtron and Nidec have continued joint development to supply products equipped with Nidec’s traction motor system E-Axle for customers all over the world. Moving forward to prepare the productions further, Hon Hai/Foxtron and Nidec have come to consider establishing the JV. The JV aims to ensure a stable supply of traction motors and other automobile motors for Hon Hai/Foxtron, and to expand sales opportunity of new markets and customers for Nidec. Also, the Company expects that the JV will greatly contribute to the business expansion and growth of all companies related to the JV.

Source: Hon Hai Precision Inc. Co., Ltd., https://www.honhai.com/en-us/press-center/press-releases/latest-news/652