Foxconn is preparing to spin off part of its business in an effort to raise funds to further pursue cloud, Internet of Things and 5G projects.
The Chinese manufacturer has already filed a prospectus with the Chinese securities regulator for a partial IPO of Foxconn Industrial Internet and its lucrative iPhone or mobile chip business could soon be a separate company.
Foxconn aims to raise up to $4bn from the IPO which it will use to invest in a number of new projects. The prospectus lists a large number of high-profile customers besides Apple including Dell, HPE, Lenovo, Huawei, Nokia, NVIDIA, Amazon, Arris and NetApp.
The spinoff was first proposed in December of 2017 by the company Hon Hai which owns Foxconn. Although the terms of the offering have not yet been finalised, the Chinese media group Yicai Global reported that the IPO will be for 15 per cent of the shares in Foxconn Industrial Internet and hinted at the possibility that the manufacturer's iPhone manufacturer business could be included in the offering.
Foxconn will invest the funds earned from the IPO on eight projects and will continue to bolster its industrial internet platforms. The company will also allocate money towards cloud computing, data centres, 5G, IOT solutions, intelligent manufacturing and AI.
Foxconn's leadership has previously indicated that it wants to move into emerging markets and a successful IPO would allow it to do so in a big way.
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