Foxconn Electronics, the world’s largest contract manufacturer of various computer and electronics components, is reportedly looking at memory module business, possibly, in order to start making its own memory sticks, or acquire another successful player on the market.
“Top-level executives from Foxconn contacted A-Data via an introduction from United Microelectronics Corporation (UMC) in an attempt to understand the memory module business and assess the possibility of tapping into the segment,” Chinese-language Economic Daily News (EDN) quotes Simon Chen, chairman of A-Data, as saying, reports DigiTimes web-site.
Foxconn Electronics reportedly denied such contacts.
Entering memory module business would allow Foxconn to ensure stable supply of memory modules to its clients, who order the company mainboards and other components, but have to buy memory modules from certain third-parties. Given that memory module supplies and prices usually fluctuate, Foxconn’s businesses may be impacted by them. On the other hand, Foxconn is constantly looking for new markets to invest and develop and memory module business might be a logical direction.
Foxconn is currently the world’s leading contract manufacturer of various electronics equipment, however, there are still many lucrative market that the company has not been able to penetrate so far itself and a logical move for the firm would be to tap the new markets with acquisitions.