Taiwanese company Foxconn, best known for producing iPhones, will soon be the company behind some of the most popular routers and other computer accessories. A Foxconn affiliate, Foxconn Interconnect Technology, announced today that it would acquire Belkin, which also includes the Linksys and Wemo brands.
Belkin, based in California, has been around for 35 years and is now known for a range of computer and phone accessories, including wireless chargers, laptop docks, and phone cases. Belkin acquired Linksys, known for its home router in 2013, and has been operating a smart home system called Wemo for more than five years.
This is a relocation of Foxconn from a behind-the-scenes production partner to the owner of three major consumer brands
Foxconn will raise $ 866 million pay in cash to take over Belkin. The Financial Times indicates that the purchase should be approved by the US Foreign Investment Committee, meaning that it is not yet a completed transaction. Given the fact that further high-profile foreign acquisitions were made under the Trump administration, one should not consider this purchase as safe ̵
Foxconn Interconnect Technology is a Foxconn subsidiary specializing in the construction of cables and connectors. t Consumers focused. That makes it a bit weird again, but it makes sense to look at the bigger picture of the company.
Since the beginning of the year, Foxconn has expressed its desire to branch out and diversify its business so that it is not quite as dependent on the iPhone. Half of the sales should come from Apple, so if Apple would change its partners or the iPhone would lose popularity, the company could fight. Foxconn's plan to fix this obviously is to take on an Apple-like role: selling directly to consumers. Corrected March 26, 9:08 PM ET: This article was briefly updated to say that Foxconn had its headquarters in China; It is actually based on Taiwan.