![]() To cut down their costs, the majority of contract producers have started to use robots in their factories in the recent years and further optimized their production flows. The company earned $131.82 billion in revenue in 2016, but intense competition between Foxconn, Flextronics, Pegatron, Quanta, and other contract makers of devices have reduced profit margins in this business. Hon Hai Precision Industry (which uses the Foxconn brand) is primarily known for its contract manufacturing of various electronics for different companies, including Apple, Sony, Microsoft, and dozens of others. “ Integrating Belkin’s best-in-class capabilities and solutions into FIT, we expect to enrich our portfolio of premium consumer products and accelerate our penetration into the smart home.” ![]() “ FIT is excited to acquire Belkin and its capabilities in the premium consumer products space,” said Sidney Lu, CEO of FIT. As old contracts expire, Belkin’s outsourced products will be manufacturered by Foxconn instead. Foxconn believes that all of the product lineups are equally important and therefore the company will invest in all of them. As part of the announcement, Foxconn promises that it will increase R&D spending of Belkin and grow the company’s portfolio of products.īelkin and Linksys are primarily known for their PC/mobile accessories and network equipment, whereas the Wemo and Phyn brands are used to market smart home equipment. Chet Pipkin, CEO and founder of Belkin, will remain at the head of the subsidiary. Under the terms of the agreement, Belkin will become a subsidiary of FIT, and all the brands will be preserved. Pipkin is expected to join FIT’s management team.Foxconn Interconnect Technology this week signed a definitive agreement to take over Belkin International, the company that controls such brands as Belkin, Linksys, Wemo, and Phyn. Foxconn will pay $866 million in cash for Belkin’s assets. “We see significant synergies with FIT, including leveraging its world-class manufacturing capability to enhance Belkin’s operating efficiency and competitiveness,” Pipkin said, adding that “The transaction also grants us access to more resources to invest in our people and to aggressively pursue opportunities in the marketplace.”īelkin International and its family of brands will continue to operate as a subsidiary of FIT under the leadership of CEO and founder Pipkin and his executive team. “Integrating Belkin’s best-in-class capabilities and solutions into FIT, we expect to enrich our portfolio of premium consumer products and accelerate our penetration into the smart home.”Ĭhet Pipkin, CEO and founder of Belkin International said, this move will accelerate our vision of delivering technology that makes the lives of people around the world better, more convenient and more fulfilling. and key markets globally.įIT is excited to acquire Belkin and its capabilities in the premium consumer products space,” said Sidney Lu, CEO of FIT. The transaction would also fuel the growth of Belkin’s portfolio of brands and products and supports further investment in research and development and engineering to expand FIT and Belkin’s presence in the U.S. Leveraging Belkin’s strength in research and development capabilities and the consumer products channel, FIT is expected to further tap into premium accessories and the smart home market. ![]() Belkin has also been running a smart home system called Wemo for more than five years. Belkin purchased Linksys, which is known for its home routers, in 2013. Its subsidiary Foxconn Interconnect Technology Limited (FIT) has just signed a definitive agreement with Belkin International which owns the four brands.Ĭalifornia-based Belkin has been around for 35 years and is known for making various computer and phone accessories, including wireless chargers, laptop docks and phone cases. Taiwan-based Hon Hai is trading as Foxconn Technology Group. Hon Hai Precision Industry, a major Apple contract manufacturer, will acquire Belkin, Linksys, Wemo and Phyn brands for approximately US$866 million in cash, according to a statement made by Belkin International. ![]()
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