Hon Hai has reportedly begun shipping solar-energy equipment on a small scale through its subsidiary-Foxsemicon Integrated Technology Inc., which has been using its semiconductor equipment manufacturing experience to tap solar-energy equipment manufacturing.

At its annual general shareholders meeting, Hon Hai chairman Terry Gou said his company has formed a specialized team to evaluate the feasibility of tapping the nascent solar-energy industry.

An industry insider believed Hon Hai's two subsidiaries-the flat-panel manufacturer Innolux Display Corp. and the LED (light emitting diode) manufacturer Foxsemicon-will likely engage in solar-energy equipment manufacturing.

Specialized in manufacturing semiconductor equipment, Foxsemicon has close ties with the U.S.-based Applied Materials, one of the world's leading suppliers of semiconductor equipment. Foxsemicon said it has tapped Applied Materials' solar-cell supply chain, setting a positive example under the Hon Hai Group as it moves towards the solar-energy industry.

An industry insider noted Foxsemicon has been working with Applied Materials and Teco Group to develop and roll out solar-energy-related equipment, as well as having received orders from China's upstream solar-energy market.