Foxconn is the biggest and most important partner of the Apple company and it seems like an investment of almost 10 billion dollars could reach in China directly from the USA. The information is only available as a rumor at the moment, but it seems that those 10 billion dollars could be invested in the form of the acquisition of a part of the company, with Apple becoming a shareholder of Foxconn. At the moment, Foxconn is worth approximately 40 billion dollars and an investment of 10 billion dollars would seriously increase the interest of investors in the largest producer of iDevices.
...which said that Apple was preparing to make a massive $9.76 billion investment in Hon Hai, which was going to issue new shares in the form of global depositary receipts (GDRs) to make Apple its second largest shareholder. Hon Hai currently has a market capitalization of about $40 billion, meaning an investment of that size, assuming it were new shares, would make Apple the owner of about 20 percent of Hon Hai's shares. From a cash standpoint, the investment would represent a minor amount of money for Apple, which has so much cash at this point—around $100 billion to be exact—that it took the unusual step last month of restoring a dividend for shareholders after a 17 year gap, and also said it would buy back another $10 billion worth of its stock. From a strategic standpoint, it makes perfect sense for Apple to make such a large investment in one of its biggest manufacturing partners, which shows not only its commitment to the health of that partner but also to the efficient and ethical running of its operations.
Such a large investment in its biggest partner would give Apple a major strategic advantage over its direct competitors and would help it significantly reduce the production costs of iDevices. Even if these speculations will not lead to such a large investment, it is not excluded that in the future Apple will invest a lot of money in Foxconn considering that it needs many more production lines for its iDevices and the production costs are not will decrease in the near future. Foxconn and Apple have an extremely close relationship and the 100 billion dollars that Apple has at its disposal will help it conclude some important strategic partnerships in the future.
