Foxconn invests in chip factory towards electric cars
Hon Hai Precision Industry, better known as Foxconn,announced a $25.78 million investment in shares in semiconductor manufacturer Dagang NeXchange, DNeX. As of now, the Taiwanese control 5.03% of the brand, according to the website DigiTimes.
Founded in Malaysia, DNeX should be used especially in fields known in the industry as “3+3” — an expression for the three key areas of electric cars, digital health and robots, developed from three technologies: Artificial Intelligence, Semiconductors and Next Generation Communications.
More specifically, Foxconn wants to expand its dominance in electric cars, a growing industry in many parts of the world. The company is especially interested in an 8-inch wafer factory from a partner brand, SilTerra, which can feed this industry from less demanding production processes. By 2023, the company even intends to take care of its own cars.
Foxconn isn’t just thinking about the future: it also suffers from the crisis in the semiconductor industry and has even warned Apple, which is its current main trading partner, that chip shortages will worsen by 2021. TSMC, another giant in the processor industry, has also warned that it will prioritize orders from Apple and the automotive industry in the coming years.