Foxconn Said to Partner with Ericsson on 5G Projects

Foxconn Technology Group reportedly plans to work with Telefonaktiebolaget L. M. Ericsson to develop fifth-generation (5G) mobile connection technologies as part of its plan to invest NT$4 billion (US$129.03 million at US$1:NT$31) to build its global 5G R&D teams.

Informed sources say that details of the cooperation between the two companies will be finalized soon, with Foxconn expected to invite Ericsson to open an R&D center in Taiwan to work with local telecom equipment makers.

Foxconn has reportedly acquired telecom equipment assets for developing radio-frequency and optic-fiber equipment and technologies from some vendors in America and North Europe.

According to Foxconn Vice President F.M. Lu, who is also chairman of the Foxconn-owned Asia Pacific Telecom Co., Ltd., the company will increase the number of its 5G R&D specialists to 200 worldwide from 60 or so currently in America and Northern Europe. These specialists are developing smart computing devices, such as smartphones and tablet PCs, and cell towers, with the aim of releasing such products in 2016 or 2017.

Industry executives say Foxconn, the leading global contract manufacturer of electronic products, may be a setter of global specifications for 5G service with its efforts, pitting it against Huawei Technologies Co., Ltd. of mainland China and Samsung Electronics Co., Ltd. of South Korea for leadership in the sector.

Lu predicts that the world will enter the 5G era in 2018 to 2020, mostly due to the prevalence of Internet of Things (IoT), which would create a market for tens of billions of 5G end-user devices. He also noted that integration of IoT in smart computing devices began taking off in 2014.

Such optimism has inspired the governments of South Korea, mainland China, and Europe Union to develop 5G technology. Huawei and Samsung have set aside billions of US-dollars for such development. The Taiwan government should support R&D by local manufacturers to develop niche 5G products, Lu said.

5G technology delivers fast transmission speeds on high frequency bands and enables slim end-user devices, Lu added.

Aware of the limited government funding for 5G technology R&D, Foxconn Chairman Terry Gou has pledged to set aside NT$4 billion for the development of the technology in Taiwan.

Foxconn stressed that its 5G project focuses on joint design management (JDM), original design manufacturing (ODM), and integrated device manufacturing (IDM) in cooperation with customers. The company rejected reports that it would become a supplier of essential telecom infrastructure equipment in competition with customers.

(KL)