Foxconn, HP to set up server joint venture

by Frank Tu 0

Hon Hai Precision Industry Co., Ltd., widely known as the Foxconn Electronics, a Taiwanese multinational electronic manufacturer announced the plan to join up with Hewlett-Packard (HP), an American multinational information technology corporation in producing cloud computing servers as well as providing supporting related services.

While according to HP CEO Meg Whitman, this cooperation would combine the innovation of HP’s server business model, being the leading brand in cloud computing products, along with the related services provided and Foxconn’s expertise on R&D and manufacturing, which would definitely change today’s market game-playing rules.

The rapid growth of the development of cloud computing has completely changed the existing global supply chain model, specifically for server products, as stated by Foxconn president Terry Guo. Due to suppliers’ urgent needs in being able to comply to clients’ demands of providing total solutions which include design capability, global production ability and shipment as well complete after-sale services, this joint venture agreement is scheduled to become effective as of May 1.