Foxconn reportedly plans to establish R&D centers in Japan

Ninelu Tu, Taipei; Joseph Tsai, DIGITIMES [Friday 28 December 2012]

Foxconn Electronics (Hon Hai Precision Industry) is reportedly preparing to establish R&D centers in Japan with an estimated investment of at least US$1 billion in 2013, according to sources familiar with Foxconn's plans.

Foxconn is looking to establish centers in cities including Tokyo and Osaka. The centers are expected to focus on the development of display, optical and touchscreen technologies, the sources noted.

The sources pointed out that Foxconn has been aggressively developing its business model towards vertical integration, from the manufacture of components to finished products, and therefore Foxconn's investments in developing key technologies will continue to increase in the future.

Foxconn has been aggressively investing in display, optical and touchscreen technologies and has recently invested in China-based Shenchao Photoelectric and Tianyi Display Technology and Taiwan-based Wcube to acquire related R&D technologies for production.

As for technology patents, Foxconn also previously signed contracts with Japan-based NEC to acquire the use of its patents related to LCD panel technologies.

The sources commented that Foxconn's investment plans in Japan are partly due to the country's leadership in display technology R&D. By establishing R&D centers, Foxconn hopes to build cooperation with companies in Japan and gain the chance to learn their technologies.