TAIPEI -- Key iPhone assembler Hon Hai Precision Industry, also known as Foxconn Technology Group, is making an investment in China's online car-hailing service Didi Chuxing, four months after its client Apple Inc. made a $1 billion bet on the Chinese startup.
Hon Hai said in a local stock exchange filing late Thursday that it is paying $120 million to acquire a 0.36% stake in Xiaoju Kuaizhi Inc., the formal name of Didi, via a subsidiary. The deal gives Didi a value of about $33 billion.
The investment in Didi by the world's largest contract electronics manufacturer came a month after the ride-hailing company announced plans to acquire U.S. rival Uber's Chinese operations, a deal which is currently being investigated by China's Ministry of Commerce over anti-trust concerns.
Foxconn, like Apple, is trying to tap into China's expanding auto and car-related service market.
With the aim of building connected electric cars in China in the future, the Taiwanese manufacturer has a minority stake in China's Harmony Auto, and the two companies have set up car maker Future Mobility, together with China's internet conglomerate Tencent Holdings.
In Taipei on Friday, Hon Hai shares closed at 77.70 New Taiwan dollars, or 1.01% lower, extending their losing streak to three trading days. The benchmark Taiwan Weighted Stock Index also finished 1.06% lower at 9164.88.