Foxconn and Korea-based SK C&C reached a strategic partnership agreement to set up an IT service joint venture, FSK Holdings Limited, in Hong Kong to tap into the Chinese IT service market, reported Economic Daily News on March 27. Foxconn will invest NT$2.0 billion (US$639 million; US$1=NT$31.289) to acquire 70% stake in the joint venture, which is slated to begin operation in May to integrate IT services with Foxconn's smart factory and automation technology. The cooperation is part of Foxconn's "Industry 4.0" initiative, aiming to apply smart manufacturing systems and R&D process to develop innovative services.