Foxconn Signals EV Chips Move With $90.8m Plant Purchase From Macronix

• Taiwanese Apple supplier buys site in chip-making hub of Hsinchu

• Move follows joint venture with Yageo Corp to make integrated circuit products

Foxconn has bought a chip plant from Taiwan chipmaker Macronix International for $90.8 million, as the electronics giant looks to make auto chips as it moves into the electric vehicle market.

The electronics manufacturing conglomerate, which counts giants such as Apple among its top clients, has been looking to acquire chip plants globally as a worldwide shortage continues to impact producers of goods from cars to electronics.

The supply bottleneck has led to production cuts and warnings of supply chain disruptions from manufacturers across the world this year.

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In a joint news conference, Foxconn and Macronix said the sale of the 6-inch wafer fabrication plant in Taiwan’s chip-making hub of Hsinchu will be finalised by the end of this year. The plant is not currently in operation.

Foxconn Chairman Liu Young-way told reporters the plant is gearing up to produce 15,000 wafers per month by 2024, which could supply silicon carbide semiconductors for 30,000 EVs a month, and added it’s a milestone for the company’s new EV business.

Foxconn has in recent months announced plans to become a major player in the global EV market and has said it was in talks with foundries on possible collaborations to make chips for EVs.

CORE BUSINESS

Liu said the target production was slim but it was “only a start” for Foxconn.

Foxconn, which counts semiconductors among its core businesses, also announced in May a joint venture with Yageo Corp to make small integrated circuit products.

Liu said the Hsinchu site will become the global semiconductor hub for Foxconn, formally known as Hon Hai Precision Industry Co Ltd.