Itâs official: Taiwanese manufacturer Foxconn has submitted an application for a 4G license in Taiwan, as the Wall Street Journal reports.
This comes after we reported in late May that Foxconn was keen on acquiring a 4G license in the country asÂ part of the companyâs âeight-screen-in-one-cloud business strategyâ.
Foxconnâs statementÂ comes after Taiwanâs National Communications Commission said late Monday it was reviewing the qualifications of seven applicants, including Ambit Microsystems â a subsidiary of Foxconn, according to the report. The regulator will announce the list of bidders that make the cut by the end of August, before the spectrum auction takes place in September.
Foxconnâs move signals that executives realize the need for diversification and is steering the company toward such a direction. The company, alsoÂ known as Hon Hai Precision Industry,Â is theÂ worldâs largest electronics contract manufacturer by revenue, and has taken on most major electronics brands as its clients. It is most widely known asÂ Appleâs largest supplier.
However, Foxconn has seen itsÂ revenue growth slowingÂ amid a faster-than-expected decline in iPhone orders. In a bid to create more balance,Â Apple has also been shifting its supply chain to Pegatron.
By moving away from purely manufacturing and aiming to spread its net wider to capture more revenue sources, Foxconnâs natural target has been downstream processes â which occur after the manufacturing of electronics has taken place. Such steps could eventually enable it to get involved in the entire chain of processes and facilitate the sales of its own products.
In May, Foxconn invested $8.7 million for aÂ 28 percent stake in Taifo, a local fiber-optic Internet network service provider. Earlier this month, the companyÂ announced an official partnership with MozillaÂ to develop at least 5 new devices, including a tablet, and subsequently it teamed up with Taiwan Mobile to release a low-cost Android smartphone.
Image Credit: AFP/Getty Images