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Foxconn will establish a $5billion joint venture to develop a chip fab in Malaysia

The plant will most likely cost between $3 billion and $5 billion

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Foxconn will establish a $5billion joint venture to develop a chip fab in Malaysia

Foxconn, the world’s largest iPhone maker, has announced intentions to establish a chip-making factory in Malaysia focusing on the fabrication of semiconductors used in electric cars (EVs).

Foxconn announced an agreement to develop and manage the plant with Malaysia’s Dagang NeXchange Berhad (DNex). DNeX is also a stakeholder in SilTerra, which has an eight-inch-wafer foundry in north Malaysia with nodes ranging from 110 to 180nm. Foxconn also holds a 5% stake in DNex.

The joint venture has yet to reveal the location of the factory or the size of its investment. However, the plant will most likely cost between $3 billion and $5 billion based on its estimated production.

The facility will produce around 40,000 12-inch chips each month, with process nodes ranging from 28 to 40nm. These will be utilised in the development of semiconductors for microcontrollers, sensors, driver integrated circuits, networking, and other devices.

Earlier this year, Foxconn teamed with Vedanta Group to establish a semiconductor factory in India, supported by state incentives. The size of the investment has not been disclosed, but the joint venture is thought to be in talks with states about a $20 billion chip and display investment spread out over several years.

Last year, the business also paid T$2.52 billion (US$90.8 million) for a chip facility in the northern Taiwanese city of Hsinchu. By 2024, the 6-inch chip fab expects to manufacture 15,000 chips per month, delivering silicon carbide semiconductors for up to 30,000 electric cars.

As growth in its smartphone sector has stalled, Taiwanese contracting giant Foxconn has increased its market share in the semiconductor industry. In 2019, the leader of its semiconductor business was named Chairman and President of the entire firm.

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