Foxconn is taking over SoftBank’s Asia-based tech investment fund. The manufacturing giant, which is responsible for producing Apple’s iPhone among many other tech products, has agreed to buy a majority 54.5 percent stake in SoftBank Asia Capital in exchange for $600 million, according to a filing.
The deal is scheduled to go through March 1, after which time SoftBank Asia Capital will no longer be a SoftBank affiliate. A SoftBank representative confirmed that the agreement will see Foxconn become “the decision maker on investments” for the fund.
Foxconn itself said the fund would blend “SoftBank’s investment expertise” with its “leadership in advanced manufacturing and technology services” and global presence.
“The establishment of this joint venture is in line with Foxconn’s overall investment strategy and will enable the company to explore and tap new investment opportunities that will drive Foxconn’s sustainable business development,” the firm said in a statement provided to TechCrunch.
That’s right, Foxconn already has an investment strategy. The Taiwan-headquartered company may be synonymous with production, but it is no stranger to doing deals. Its investments include India-based chat app Hike, China’s top ride-sharing firm Didi Chuxing, selfie app and selfie phone maker Meitu, 360 degree camera maker Lytro, and hot Chinese bike rental startup Mobike.
SoftBank and Foxconn have a long history of cooperation. Foxconn is one LP in SoftBank’s new Vision fund, which also includes contributions from Apple, Qualcomm and Oracle co-founder Larry Ellison’s family office. The Vision Fund is targeting a $100 billion raise, and real estate startup WeWork may be one of its first deals, as we reported earlier Monday Asia time.