TechDigits

Tech news
Friday, Mar 01, 2024

0:00
0:00

Apple Assembler Foxconn Picked Malaysia To Build A Chip Factory For Electric Vehicles

Taiwanese manufacturing giant Foxconn plans to build a factory in Malaysia, a little-known semiconductor hub, to make chips for the ever-expanding field of electric vehicles.
Foxconn’s Malaysian partner, Dagang NeXchange, said in a filing with stock exchange Bursa Malaysia that it had signed a memorandum of understanding with Big Innovation Holdings, a subsidiary of the iPhone assembler, to set up a joint-venture in the Southeast Asian country.

According to The Asia Morning post, Foxconn and Dagang NeXchange are building a semiconductor factory for electric vehicles.

The joint venture will build a fabrication plant specializing in the mature technologies of 28-nanometer and 40-nanometer process nodes, capable of producing up to 40,000 wafers per month.

“I believe Foxconn conducted its cost benefit analysis before making such a decision,” says Darson Chiu, a research fellow with the Taiwan Institute of Economic Research think tank in Taipei. Goods made in Malaysia can sell in China, the U.S. and Southeast Asia free of political constraints, he says.

“Manufacturing in Southeast Asia will not only lower the costs but also deviate from the U.S.-China competition and conflicts,” Chiu adds.

Malaysia, Chiu notes, has Southeast Asia’s “most advanced IT capabilities and it’s important, because then Foxconn can recruit and train local technicians to kick off production.”

The Southeast Asian nation represents an emerging tech hub that’s sheltered from the Sino-U.S. trade dispute. The four-year-old dispute has imposed tariffs on hundreds of billions of dollars in each country’s products.

About 37% of Malaysia’s exports of goods comprise electrical and electronic products, notes Rajiv Biswas, executive director and Asia-Pacific chief economist at S&P Global Market Intelligence. Malaysia accounts for an estimated 13% of the global capacity for semiconductor assembly, testing and packaging, he says.

“Foxconn’s decision to build a major semiconductors facility in Malaysia reflects the high priority being given by electronics firms to diversification of their supply chains for critical electronics components,” Biswas says.

Foxconn, led by billionaire Terry Gou, has shown intent in recent years through a series of joint ventures to expand into electric vehicles, an industry set to reach $957 billion worldwide by 2030 at a compound annual growth rate of 24.5% from this year.

The company formally known as Hon Hai Precision has reached deals with U.S.-based EV startup Fisker and Chinese automaker Geely, among others. A venture with Stellantis has allowed Foxconn to develop automotive cockpit software and another, with Gigasolar Materials, gives it expertise in EV batteries.

The Taiwanese assembler with annual sales of $214.6 billion also operates its own platform for EV manufacturing.
Newsletter

Related Articles

TechDigits
0:00
0:00
Close
FTX's Bankman-Fried headed for jail after judge revokes bail
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Musk announces Twitter name and logo change to X.com
The future of sports
TikTok Takes On Spotify And Apple, Launches Own Music Service
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
Melinda French Gates Advocates for Increased Female Representation in AI to Prevent Bias
Snapchat+ gains 4 million paying subscribers in its first year
Apple Makes History as the First Public Company Valued at $3 Trillion
Elon Musk Implements Twitter Limits to Tackle Data Scraping, but Faces Criticism for Technical Misunderstanding
EU and UK's Slow Electric Vehicle Adoption Raises Questions About the Transition to Green Mobility
Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks
Meta Unveils Insights on AI Usage in Facebook and Instagram, Amid Growing Calls for Transparency
Crypto Scams Against Seniors Soar by 78% in 2022, Experts Urge Vigilance
The End of an Era: National Geographic Dismisses Last of Its Staff Writers
Shield Your Wallet: The Perils of Wireless Credit Card Theft
Harvard Scientist Who Studies Honesty Accused Of Data Fraud, Put On Leave
Putting an End to the Subscription Snare: The Battle Against Unwitting Commitments
The Legal Perils of AI: Lawyer Faces Sanctions for Relying on Fictional Cases Generated by Chatbot
ChatGPT’s "Grandma Exploit": Ingenious Hack Exposes Loophole in AI, Generates Free Software Codes
The Disney Downturn: A Near Billion-Dollar Box Office Blow for the House of Mouse
A Digital Showdown: Canada Challenges Tech Giants with The Online News Act, Meta Strikes Back
Distress in the Depths: Submersible and Passengers Missing in Titanic Wreckage Expedition
Mark Zuckerberg stealing another idea: Twitter
European Union's AI Regulations Risk Self-Sabotage, Cautions smart and brave Venture Capitalist Joe Lonsdale
Nvidia GPUs are so hard to get that rich venture capitalists are buying them for the startups they invest in
Chinese car exports surge
Reddit Blackout: Thousands of Communities Protest "Ludicrous" Pricing Changes
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts
×