Hon Hai Precision shares rise on reports of tie-up with Huawei

PUBLISHED : Monday, 23 May, 2016, 11:00pm
UPDATED : Monday, 23 May, 2016, 11:01pm

The share price of Taiwan-based Hon Hai Precision, the world’s largest contract electronics manufacturer more widely known under its trade name Foxconn Technology Group, rose 4.6 per cent in Taipei on Monday following reports the company is building a new factory for Huawei Technologies in Guizhou Province in southwest China.

Foxcoon is building a new assembly facility to accommodate Huawei’s expanding business in the smartphone sector, according to Japan-based news website Nikkei.

Huawei, which leads the pack for Chinese smartphone makers, produced 108 million smartphones last year.

The report said Foxconn is choosing Guizhou since Huawei founder and chief executive Ren Zhengfei was born in the province. Foxconn Chairman Terry Gou will go to Guizhou to check the development progress of the new plant when he attends the Big Data Expo later this week in Guiyang, the capital of Guizhou province.