Foxconn Has Eye on ECS, Mulls Acquisition

Paul Lilly

As the primary supplier of iPhone, iPod touch, and iPad touch devices, as well as making products for high-profile companies like Acer, Asus, Dell, Nintendo, Microsoft, Sony, and others, life is good for Foxconn (or Hon Hai Precision, if you prefer), which collected $59.3 billion in revenue in 2010. Foxconn can afford to go on a spending spree, and in addition to buying one of Cisco's manufacturing facilities in Mexico, the electronics maker is now setting its sights on Elitegroup Computer Systems (ECS).

At least that's the buzz from news and rumor site DigiTimes , which readily admits that both Foxconn and ECS refute the rumor. If you roll your own systems, you might recognize ECS as a builder of budget motherboards. ECS also produces higher end mobos, as well as a whole host of other products, including OEM boards for system vendors.

According to DigiTimes, the big draw for Foxconn is a buyout would give it access to ECS' China-based retail channel subsidiary Orbbit, which is headquartered in Beijing. On the flipside, ECS is one of the few subsidiaries of Tatung Group that isn't losing money, so Tatung might not be real motivated to sell.

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