The Chinese manufacturing giant that makes most of the world’s iPhones is looking for new opportunities in other parts of the mobile ecosystem. Foxconn is reportedly teaming up with HP to make servers to support cloud data applications for service providers.
The move is the latest sign that ownership of the global server manufacturing industry is shifting to Asia. IBM recently announced the sale of its server business to Lenovo, and Taiwan’s Quanta, known for white label manufacturing of computers, is now selling its own branded servers.
Foxconn is the popular name for Hon Hai Precision Industry Co., and the company is the largest contract electronics manufacturer in the world. Foxconn is clearly ready to expand beyond personal electronics manufacturing. Earlier this year Foxconn announced plans to buy Socle, a Taiwanese chipmaker that specializes in ARM-based SoCs, the applications processors most commonly used in smartphones and tablets. Now Foxconn is apparently eyeing the server market as well, with a powerful partner.
Foxconn has been a popular partner for Western companies despite persistent reports of human rights abuses in its factories. Foxconn manufactures Apple iPhones at three plants in China: Zhengzhou, Shenzhen and Taiyua. Apple has promised more oversight of the Foxconn facilities, and reports of violations have subsided somewhat this year.
