Hon Hai Precision Industry Co said it is teaming up with CTBC Financial Holding Co to create a new fund targeting electric vehicle (EV) investments, the latest step in its quest to expand into the EV market.

Fundraising is to start in the fourth quarter, with an eye to raising between NT$5 billion and NT$10 billion (US$178.5 million and US$357.1 million) from institutional investors and Taiwan’s National Development Fund (NDF), the companies said in a joint statement.

The fund would “accelerate the rate of development” of EV companies by providing not just funding, but technical support, Hon Hai chairman Young Liu said in the statement.

“With Hon Hai’s technical advantage and CTBC’s financial expertise, we hope to speed up the development of the EV industry and provide Taiwan with another world-class industry beyond semiconductors and information and communications technology,” Liu said.

Bringing public and private investment together is the key to fostering the next generation of Taiwanese EV companies, CTBC Bank chairman Morris Li said.

“We will proactively invite the NDF, financial investors and industrial sector investors to join us, and contribute to upgrading Taiwan’s industrial capabilities,” Li said.

Taipei Times