TAIPEI (Taiwan News) — Foxconn Technology Group and passive component maker Yageo Corporation teamed up on Wednesday (May 5) to launch a joint venture for the development and sale of semiconductors.
The announcement came as the world is struggling with a shortage of semiconductors, especially for the automotive industry, with Taiwan one of the top global suppliers of chips.
Foxconn, also known as Hon Hai Precision Industry, is the world’s largest electronics manufacturer, known for the production of Apple iPhones, while Yageo is reportedly the third-largest passive component manufacturer in the world.
Foxconn Chairman Young Liu (劉揚偉) and Yageo Chairman Pierre Chen (陳泰銘) appeared together Wednesday to sign the contract launching XSemi Corporation, CNA reported. The company will be based in Hsinchu and focus on semiconductor products priced at less than US$2 per unit.
Cooperation and partnership talks with world-class semiconductor companies were proceeding, the business leaders said, with more specifics to be announced soon.
For Foxconn, the semiconductor joint venture fits into its overall plans for electric vehicles, digital health, and robotics, while Yageo has already taken steps related to electric vehicle components and 5G technology, CNA reported.