Foxconn Electronics has announced that one of its subsidiaries, Chief Expertise, has purchased a 100% stake of Microsoft Mobile (Vietnam), a handset unit of Microsoft Mobile in Vietnam, for VND492 million (US$22 million).

Foxconn said it will utilize the handset plant to produce smartphones and feature phones in Vietnam.

Microsoft also reached an agreement in May to sell its feature phone business unit to FIH Mobile and HMD for US$350 million. The deal is expected to complete in the second half of 2016.