As Foxconn Electronics (Hon Hai Precision Industry) and Hewlett-Packard have established a non-equity joint venture to produce servers for cloud computing, Cisco Systems and Dell are likely to shift orders from Foxconn to other ODMs including Quanta Computer, Wistron, Inventec and Mitac International, according to sources in the Taiwan-based supply chain.
However, none of the parties involved in the report confirmed any relationship.
The reasoning behind the shift in orders is that Cisco and Dell are worried that Foxconn may decrease R&D input and support services for their servers due to the joint venture, which went into operation on May 1, 2014, the sources claimed.
Article translated by Adam Hwang
