Foxconn makes many of the consumer electronics we use today, so there’s a very good chance you have at least one product it assembled in a factory somewhere overseas. The manufacturer doesn’t plan on staying behind the scenes any longer, though. It has acquired Belkin and all of its brands in a deal reportedly worth nearly $1 billion. Both companies confirmed the deal to create “a global consumer electronics leader” once operations merge.
While hundreds of patents are being picked up in the process, absorbing Belkin means Foxconn can start developing its own hardware.
The deal, which Belkin says is worth approximately $866 million, comes as a surprise since Foxconn makes products for other brands but not itself. But this is a clear sign that the manufacturer is ready to expand its business.
Belkin’s brands include Linksys, Wemo, and Phyn. The company sells chargers, cases, routers, and more. As of late, Belkin’s been using the Wemo brand to penetrate home automation.
In 2017, Foxconn was in the news for announcing plans to build a manufacturing facility in Wisconsin at a cost of $10 billion. The state provided Foxconn with a massive tax break to spur the decision. Belkin’s manufacturing is likely done outside the U.S. despite being a domestic company, but Foxconn could bring its products back home using that facility set for completion next year.
The U.S. government will need to approve the deal, but given Foxconn’s commitment to open a factory in the midwest, there shouldn’t be any problem acquiring Belkin.