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Foxconn Announced to Build a Chip Factory in Malaysia, with a Monthly Output of 40000 Wafers

Update time : 2022-05-23 14:23:22

Recently, Foxconn announced that it will establish a 12 inch wafer manufacturing plant "NewFab" in Malaysia, which will be mainly used to meet the semiconductor demand of electric vehicles. Foxconn has been on the auto track for a long time. The auto chip wafer factory established in Malaysia is a joint venture company JVCo jointly invested by Big Innovation Holdings Limited ("BIH"), a wholly-owned subsidiary of Foxconn, and Dagang NeCchange Berhad ("DNeX"), a leading service provider in the field of trade and energy in Malaysia. The newly established wafer factory will involve 28nm and 40nm process manufacturing technology, The monthly production capacity is expected to reach 40000 pieces.

Foxconn's accession will further promote Malaysia's key position in the global semiconductor industry chain. Foxconn will choose to enter Malaysia to establish an automobile chip factory for two reasons: one is based on its own strategic needs, and the other is the determination of the Malaysian government to develop the semiconductor industry.
Previously, some media reported that Foxconn and PTT, a Thai state-owned enterprise, would reach cooperation in the fields of hardware design and software research and development of new energy vehicles and launch a pure electric platform. Similar to Foxconn's announcement to enter Thailand, India and other regions, Malaysia is also the focus of global enterprises. On the other hand, Malaysia has the same characteristics as India and other Southeast Asian regions: low labor cost, relatively low technical difficulty in the sealing and testing industry, and low added value. Therefore, the cost may also be the reason why Foxconn chose Malaysia.
On the other hand, the choice of Malaysia in Foxconn's automobile layout may take into account the future industrial chain cooperation. After years of development, Malaysia has continuously improved the semiconductor industry chain and accumulated a certain technology and scale. According to the data, the semiconductor industry in Malaysia accounts for about 13% of the global market share, of which the sealing and testing industry accounts for 70% to 80% in the automotive field.
In the position of the global semiconductor industry, Malaysia is an important sealing and testing Town, and even an important link of the global automobile industry. Entering Malaysia is undoubtedly a way for Foxconn to cooperate with the industrial chain in more aspects. At present, enterprises with sealed test plants in Malaysia include Intel, micron, Texas Instruments, etc. At the policy level, the Malaysian government has always been encouraging and open to foreign-funded enterprises and has continuously issued diversified preferential policies for foreign investment.
Whether from the perspective of Foxconn or Malaysia, Foxconn's entry into Malaysia to invest and build chips is a win-win result for both sides. It is noteworthy that when Russia is facing the difficulties of the semiconductor industry, Malaysia expressed its willingness to supply semiconductor products to Russia, which may also be the reason why Malaysia needs to continuously introduce foreign capital to develop the semiconductor industry.

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