Taiwan-based electronics manufacturer Hon Hai Precision has announced that it will cooperate with Taiwan's Institute for Information Industry to develop a cloud computer software plan, which will be launched in June 2009.

This is reportedly the first time for a major Taiwanese company to tap the cloud computer sector and Hon Hai Precision is expected to become the operator and manager of cloud computer centers in Taiwan.

For the initial step, Hon Hai Precision and the Institute for Information Industry will apply for research and development expenditures from Taiwan's Ministry of Economic Affairs and jointly set up Taiwan's first cloud computer lab. Taiwan's Ministry of Economic Affairs has already announced new policies to include cloud computing in the range of financial subsidies and all manufacturers that are engaged in the research and development of cloud computing can apply for the subsidy.

Hon Hai will invest NTD1.9 billion to build a research and development building in the Kaohsiung Software Park, focusing on the development of software applications.

In addition, to find a suitable operator for the cloud computer system upon its completion, the Institute for Information Industry is inviting Chunghwa Telecom to participate in the plan. If Chunghwa Telecom joins the plan, the cloud computer system can be transferred to the company and other manufacturers, including Hon Hai Precision, will buy or rent the system to gradually enlarge the operating scale.