Foxconn Electronics (Hon Hai Precision Industry) will cooperate with CTBC Financial Holding to set up an industry fund specifically for investing in companies engaged in electric vehicles (EVs) in a bid to boost development of EV-related industry sectors in Taiwan, according to Foxconn.

The fund will combine Foxconn's manufacturing capability and experience with CTBC's financial expertise in capital market, Foxconn chairman Young-way Liu said. As growing environmental concerns have brought about changes to the car manufacturing industry, the establishment of the fund is timely and meaningful, CTBC Bank chairman Morris Li noted.

The fund will raise NT$5-10 billion (US$179-358 million) initially from institutional investors, possibly including the Taiwan government's National Development Fund.

Investment targets for the fund will be local and overseas companies, including startups, engaged in development of technologies concerning EVs, including autonomous driving, hardware/software platforms, smart machinery and green energy, or production of EV components or EVs. In addition, the fund aims to help Taiwan-based electronics, ICT and automobile makers enter international EV supply chains.

As the fund aims to promote development of EV-related industries in Taiwan, priority in investment will be given to Taiwan-based companies initially, including members of the Foxconn-led MIH Alliance.

Foxconn has selected EVs, robots and smart medical/health care as the three target industries to focus on in its future development.