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.