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Foxconn Will Build A Semiconductor Plant In Zhuhai To Meet Demand For Chips Such As 5G And AI

Aug 30, 2018

On August 17, the Wall Street journal reported that foxconn and zhuhai were planning to jointly build a semiconductor plant.

On the morning of the same day, the zhuhai municipal government announced that foxconn would cooperate with the city on chips and semiconductors, and signed a strategic cooperation agreement on the morning of August 16. Specifically, the two sides will cooperate on semiconductor design services, semiconductor equipment and chip design.

According to the zhuhai municipal government, foxconn will establish strategic cooperation with zhuhai in the semiconductor industry based on the development strategy of the integrated circuit industry and the application demand of new generation high-performance chips such as industrial Internet, 8K+5G and AI.

"We hope that foxconn will seize new opportunities to develop zhuhai, accelerate its strategic layout and promote more industrial projects," the statement said.

Foxconn is the world's largest contract chipmaker, known for assembling the iPhone range.

The pearl river delta, with shenzhen, guangzhou and zhuhai as its core, is China's main technology and manufacturing center.

The Wall Street journal commented that the move underscores foxconn chairman terry gou's ambition to transform his company from a manufacturing powerhouse into a maker of its own products.

Foxconn wants to make components and electronics, among other things, and also provide manufacturing services.

The media also cited Sean Yang, vice President of Shanghai CINNO research, as saying foxconn lacks enough talent in the semiconductor sector and may need to find a partner.

The new move will significantly boost foxconn's capabilities in the semiconductor sector.

Foxconn has already started semiconductor layouts.

In the past, foxconn's semiconductor expansion has tended to be through investment and acquisitions.

In march, according to caixin, foxconn and TSMC will jointly bid for Toshiba's semiconductor business.

When foxconn set up a "semiconductor sub-group" in May, it was also reported that the semiconductor business group had been asked to conduct a feasibility study on building two 12-inch chip plants.

Foxconn currently has a number of semiconductor related subsidiaries, including Foxsemicon integrated circuit Technology, Shunsin Technology and Fitipower integrated circuit Technology, according to the public information.

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