Foxconn might soon lose the 'conn' -- report

Hon Hai Precision Industry is considering chopping the part of its business that gave Foxconn its name.

Hon Hai is planning to spin off its Network Interconnection Business Group next month, Reuters reported Thursday, citing people who claim to have knowledge of its plans. The business group makes connectors and cables for the PC industry, but due to the recent downturn in the PC market, has become a big of a drain on Hon Hai's otherwise strong operation.

At one time, the connector business was such an integral component in Hon Hai's business that it helped form its trade name, Foxconn (it was the "conn"). According to Reuters' sources, the spinoff will occur on July 1. The connector business generates about $2.7 billion in revenue for Hon Hai, but can only muster a small profit. The new company might quickly turn around and lay off workers to decrease its expenses.

CNET has contacted Hon Hai for comment on the Reuters report. We will update this story when we have more information.