Foxconn to take over Microsoft’s Vietnam phone factory for $22m

Nokia-branded feature phone. Photo from Microsoft website.

Taiwanese electronics producer Hon Hai Precision Industry, also known as Foxconn, is acquiring Microsoft Mobile Vietnam Limited for a consideration of $22 million to produce feature and smartphones in the Southeast Asian country.

The deal follows an agreement reached in May when the US technology giant decided to sell its feature phone assets in Vietnam to FIH Mobile, a subsidiary of Hon Hai, and Finnish company HMD Global Oy, a newly established firm to take over the manufacturing of Nokia phones.

The direct buyer of Microsoft Mobile Vietnam is Chief Expertise Limited, a unit under FIH Mobile.

The VND492.4 billion ($22 million) consideration will be payable within seven business days of the closing date of the transaction, Hon Hai said in a regulatory disclosure.

Upon closing the transaction, Hon Hai, which recently acquired Japan’s Sharp in a $3.5-billion deal, will own and operate a feature phone and smartphone manufacturing business out of a facility in Bac Ninh, a northern province of Vietnam where South Korean conglomerate Samsung is also operating its phone factory.

On May 18, Microsoft announced to sell its entry-level feature phone business to the Taiwanese partner for $350 million.

“As part of the deal, FIH Mobile Ltd will also acquire Microsoft Mobile Vietnam, the company’s Hanoi manufacturing facility,” the tech major had said then.

Microsoft Mobile Vietnam was rebranded from Nokia Vietnam Limited, as a result of a $10 billion takeover by Microsoft in 2014, which was less than a year after Finland’s ICT group Nokia marked its manufacturing foray in Vietnam with a factory in Bac Ninh.

While exiting the feature phone business, Microsoft said it will continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950 and Lumia 950 XL, and phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO.

Also read:

Microsoft to sell feature phone business to Foxconn unit for $350m

Microsoft to trim smartphone business, plans to cut 1,850 jobs

Foxconn seals $3.5b Sharp takeover amid doubts of Japanese firm’s turnaround prospects

Post acquisition, Foxconn to close some of Sharp’s overseas ops

Samsung to invest $3b to increase display module production capacity in Vietnam

Samsung keen on bigger play in Vietnam, mulls investments in energy & insurance sectors

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.