On May 18, Dagang Nexchange (DNeX), a Malaysian technology company, announced yesterday that it will sign a memorandum of cooperation (MOU) with BIH, a subsidiary of Hon Hai Group. The two parties will establish a joint venture to build and operate a 12-inch wafer fab in Malaysia. , the monthly production capacity is planned to be 40,000 pieces, and the 28/40nm mature process is locked.

According to reports, the MOU will take effect from May 17 for a period of one year, and may be further extended if both parties agree. The two parties have not disclosed the capital amount, investment amount and equity structure of the joint venture company in the future. The industry estimates based on the current market conditions that the investment amount of the plant construction will start at NT$100 billion (about 3 billion US dollars).

Following TSMC's 12-inch factory in Kumamoto, Japan and UMC's expansion of 12-inch factory capacity in Singapore, Hon Hai has recently made another major investment in fabs in Asia by Taiwanese electronics giants, and they are all locked in mature processes, highlighting the maturity The process is hot.

BIH is a 100%-owned subsidiary of Hon Hai Group, focusing on semiconductor investment. In mid-February this year, Hon Hai Group announced the signing of a memorandum of cooperation with Vedanta, a large Indian multinational group. Vedanta established a joint venture, and the Hon Hai subsidiary will hold 40% of the shares to lock in local semiconductor manufacturing in India.

Hon Hai clearly pointed out last year that it is based on four core strategies in the semiconductor field, including stable provision of small ICs, co-design of its own ICs, independent development of key technologies, and deployment of multiple production capacities.

Hon Hai Group has expanded its semiconductor business all over the world. Hon Hai previously invested in an 8-inch wafer fab owned by Sharp in Japan. In June last year, Hon Hai obtained a stake in Malaysia's DNeX Group through a subsidiary and indirectly invested in Malaysia. 8-inch wafer fab SilTerra; in early August last year, Hon Hai acquired Wanghong Taiwan’s Bamboo 6-inch wafer fab to attack the third-generation semiconductor silicon carbide (SiC) wafer manufacturing. In the first half of this year, it plans to manufacture existing semiconductor components first. .