Foxconn Invests In Chip Factory To Bet On Electric Cars

Electric cars: Hon Hai Precision Industry, better known as Foxconn, announced a $25.78 million equity investment in semiconductor maker Dagang NeXchange, DneX. According to the DigiTimes website, Taiwanese will own 5.03% of the brand from now on.

Founded in Malaysia, DneX should mainly be used in areas known in the industry as “3+3” – expression for the three main areas of electric cars, digital health and robots, developed on the basis of 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 particularly interested in an 8-inch wafer factory from a partner brand, SilTerra, which can feed this sector with less demanding production processes.

Until 2023, the company even wants to take care of its own cars.

chip crisis

Foxconn is not only thinking about the future: it is also suffering from the crisis in the semiconductor sector and has even warned Apple, its current main trading partner, that the shortage of chips will worsen in 2021.

TSMC, another giant in the processor sector, has also warned that it will prioritize orders from Apple and the auto industry in the coming years.

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