Terry Guo, chairman of Foxconn Electronics (Hon Hai Precision Industry), has mentioned that the firm wants to produce different kinds of solar products. Market observers believe Foxconn has strength in manufacturing, hence should focus on solar applications for the end market.
Taiwan-based Foxconn has been said to invest CNY100 billion (US$16 billion) to the solar industries in Shanxi and Jiangsu provinces in China. In addition, market rumors regarding Foxconn investing in large-size solar projects in Guangxi province have been circulating. Although all rumors have been denied by the firm, Foxconn does have intentions to enter the solar industry.
Industry sources noted that Foxconn has been developing the solar market for a while and the most well-known project is the signing of a cooperation agreement with the Datong municipal government of Shanxi province and GCL-Poly on projects related to the production of polysilicon, solar cells, modules, and power plants announced in August 2011.
In December 2011, Foxconn announced the establishment of a solar firm in Jiangsu province with a total investment of US$30 million. The firm is to develop solar cells. However, due to unstable conditions in the solar market, Foxconn delayed its schedule for entering the solar market.
Sources added that Foxconn will not simply focus on the vertical integration of production, but on developing applications such as solar applications for agriculture as part of a project in Guangxi province. The firm also plans to develop energy storage applications, said sources.
Market observers have been expressing mixed opinions on Foxconn's involvement with the solar industry. This is because the solar market is currently in oversupply but end market prices have yet to reflect this and consumer acceptance remains relatively low.
