Foxconn Industrial Internet Explained
Foxconn Industrial Internet (Fii;) is a publicly listed company that engages in the manufacture and sale of electrical equipment that includes telecommunications equipment, cloud computing equipment, precision tools and industrial robots.
It is a subsidiary of Foxconn and is headquartered in Shenzhen.
Background
Fii was founded in 2015 in Shenzhen. It was originally a wholly-owned subsidiary of Foxconn that was set up as a strategic investment platform uninvolved in actual business operations.[1] [2]
In 2017, Fii was restructured to become a joint stock limited company.
On 8 June 2018, Fii held its initial public offering (IPO) becoming a publicly listed company on the Shanghai Stock Exchange. It was the second company in China to be fast-tracked for its listing process. At the time it was the largest IPO in China since 2015 and raised 27.1 billion yuan. On its trading debut, Fi shares rose 44% making it valuable tech company listed in mainland China at the time.[3] [4]
It was reported that Terry Gou wanted to expand Foxconn's business beyond contract manufacturing and through Fii, increase its focus on automation and smart manufacturing technology. Fii's own prospectus revealed net margins that were over 50 percent higher than its parent's.
In December 2022, the Taiwan Government fined Foxconn NT$10 million for investing in Tsinghua Unigroup without seeking regulatory approval and was in violation of the Cross-Strait Act. The investment which was executed in July that year was done through Fii. As a result, Foxconn stated it would sell out its holdings in Tsinghua Unigroup,[5]
In July 2023, it was reported that Fii would sign an agreement with the Government of Tamil Nadu to invest Rs 16 billion to build a campus in Kancheepuram that would create 6,000 jobs.[6] However Fii later on stated it had not signed any agreement.[7]
In August 2023, according to a report, Fii would exclusively supply Apple with Vietnam-made servers for training and testing artificial intelligence services. The report also stated it had supplied servers to Amazon Web Services, OpenAI and Nvidia.[8]
In October 2023, Chinese authorities stated Foxconn and its subsidiaries would be under investigation to see if they were abiding with laws and regulations. Fii shares dropped 10% as a result.[9] In November 2023, Chinese tax authorities fined Fii 20,000 yuan for overstating expenses.[10]
Notes and References
- Web site: 2023 Annual Report . 26 May 2024 . 26 May 2024 . https://web.archive.org/web/20240526174643/https://panel.fii-foxconn.com//static/upload/2024/05/16/202405165363.pdf . live .
- Web site: Yang . Ge . 23 May 2018 . Foxconn Industrial to Start Selling China's Biggest IPO Since 2015 - Caixin Global . 26 May 2024 . www.caixinglobal.com . en . 6 July 2024 . https://web.archive.org/web/20240706140220/https://www.caixinglobal.com/2018-05-23/foxconn-industrial-to-start-selling-chinas-biggest-ipo-since-2015-101254977.html . live .
- News: Kubota . Yoko . 23 May 2018 . Foxconn Unit Plans China's Biggest IPO Since 2015 . 26 May 2024 . WSJ . en-US . 26 May 2024 . https://web.archive.org/web/20240526181723/https://www.wsj.com/articles/foxconn-unit-plans-chinas-biggest-ipo-since-2015-1527050915 . live .
- Web site: Wu . Debby . 8 June 2018 . Foxconn Industrial Internet Soars in Shanghai Debut . Bloomberg News . 26 May 2024 . 12 August 2022 . https://web.archive.org/web/20220812011539/https://www.bloomberg.com/news/articles/2018-06-08/terry-gou-s-fii-soars-in-chinese-debut-after-a-4-3-billion-ipo . live .
- Web site: Jiang . Ben . 20 January 2023 . Taiwan fines iPhone maker Foxconn for unauthorised mainland investment . 26 May 2024 . South China Morning Post . en . 26 May 2024 . https://web.archive.org/web/20240526184343/https://www.scmp.com/tech/tech-war/article/3207543/iphone-maker-foxconn-pay-us330000-fines-taiwan-unauthorised-investment-mainland-chinas-unigroup . live .
- Web site: 31 July 2023 . Foxconn unit to sign $194 million components plant deal with Tamil Nadu: Report . 26 May 2024 . The Indian Express . en . 26 May 2024 . https://web.archive.org/web/20240526185013/https://indianexpress.com/article/business/companies/foxconn-unit-components-plant-deal-tamil-nadu-chennai-8868946/ . live .
- News: 1 August 2023 . Tamil Nadu govt says Foxconn Hon Hai to invest Rs 1,600 crore to build facility . 26 May 2024 . The Economic Times . 0013-0389 . 26 May 2024 . https://web.archive.org/web/20240526185009/https://economictimes.indiatimes.com/industry/cons-products/electronics/foxconn-industrial-internet-denies-signing-deal-with-tamil-nadu-report/articleshow/102293815.cms?from=mdr . live .
- Web site: Butts . Dylan . 8 August 2023 . Foxconn unit to 'exclusively' supply Apple with AI servers made in Vietnam . 26 May 2024 . South China Morning Post . en . 26 May 2024 . https://web.archive.org/web/20240526185629/https://www.scmp.com/tech/big-tech/article/3230397/foxconns-shenzhen-based-subsidiary-exclusively-supply-apple-ai-servers-made-vietnam-report . live .
- Web site: 24 October 2024 . Foxconn shares feel weight of investigations . 26 May 2024 . The Standard . en . 26 May 2024 . https://web.archive.org/web/20240526184344/https://www.thestandard.com.hk/section-news/section/11/257211/Foxconn-shares-feel-weight-of-investigations . live .
- Web site: 22 November 2023 . China Fines iPhone Maker Foxconn $2,800 Amid Major Tax Probe . Bloomberg News . 26 May 2024 . 22 November 2023 . https://web.archive.org/web/20231122042607/https://www.bloomberg.com/news/articles/2023-11-22/china-fines-iphone-maker-foxconn-2-800-amid-major-tax-probe . live .
