Foxconn says that it will spend US$12.8 million in acquiring 74,999 shares of South Korean mobile phone manufacturer Diabell for the purpose of improving its design and manufacturing capacity in key mobile phone components.

Foxconn believes that the acquisition will help it better serve its clients by increasing its capacity in designing and manufacturing. According to the agreement, the acquisition will be completed before January 3, 2008.

Diabell is a mobile phone design and manufacturing company in South Korea. Its main clients include Motorola, Samsung and LG.