Foxconn may enter into the photovoltaic industry

According to Reuters’ news,  Foxconn Technology Group, who is known as OEM for Apple products, will decide whether to look for other ways to enter unconventional new areas before the end of the year — producing solar panels in China.

  Photovoltaic industry is currently plagued by overcapacity, and solar panel price fell by more than two-thirds over the past two years. But some analysts say that Foxconn might eventually choose the right time to enter the industry.

Foxconn has been on the market for testing in the past two years, but did not disclose any information about its solar business division Fox Energy. The company has a small solar panel plant in East China.

Foxconn spokesman Xing Zhiping (Simon Hsing) told Reuters: “We plan to make the decision whether to enter the market at the end of the year. We believe that renewable energy has a good potential trend. It appears to be a good project. This is a industry we may need to learn more about.”

Foxconn’s parent company Hon Hai Group did not disclose details on the investment in solar panels. Analysts think that the investment will not be large. But for the rich and powerful Foxconn, they have the needed expansion funds. As of March this year, Foxconn’s balance sheet has 227 billion dollars.

Foxconn is seeking ways to cut the dependence on Apple. OEM for Apple accountes for about 60% of Foxconn’s revenue.

Foxconn may enter into the photovoltaic industry