Hon Hai Precision Industry subsidiary Foxconn and Belkin have reached an agreement for the Taiwanese electronics megamanufacturer to purchase the router and accessory maker for $866 million in cash. The purchase includes Belkin as well as its Linksys, Wemo, and Phys sub-brands. The Financial Times says that Foxconn purchased Belkin in order to access its sales network, production capabilities, and portfolio of over 700 patents.
Belkin is probably most famous for making computer and consumer electronics accessories like cables, cases, and chargers over the last 35 years. The company's umbrella also includes networking hardware manufacturer Linksys, smart home accessory brand Wemo, and the Phys water-usage monitoring device. Belkin CEO Chester J. Pipkin will take on a new role overseeing Belkin operations within Foxconn.
Foxconn is probably best known as the contract manufacturer of Apple's iPhone smartphones, though long-time PC builders have doubtless seen the maker's mark on components like CPU sockets and even retail motherboards over the years.
The Financial Times goes on to report that the deal must gain approval from the Committee on Foreign Investment in the United States. TR readers will recall that US government scrutiny recently scuttled Singapore-based Broadcom's ambitions to acquire US silicon design firm Qualcomm. Foxconn's plans to open a $10 billion factory in Wisconsin might help regulators smile on the deal.
Foxconn's purchase of Japanese electronics maker Sharp back in 2016, coupled with today's buyout, suggest the company plans to charge into the US consumer electronics market through use of established brands. Some other large Chinese electronics makers, including Le Eco and Huawei, have encountered troubles trying to expand from Asian markets to the US.