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Taiwan’s Foxconn planning to build chip fab in Malaysia

Facility expected to produce 28nm and 40nm chips

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Foxconn building. (Reuters photo)

Foxconn building. (Reuters photo)

TAIPEI (Taiwan News) — Taiwanese electronics manufacturer Foxconn is planning to build a wafer fab in Malaysia.

Malaysia’s Dagang NeXchange Berhad (DNex) announced on Tuesday (May 17) it had signed a memorandum of understanding (MOU) with Foxconn’s fully owned subsidiary Big Innovation Holding Limited (BIH) to set up a joint venture to build a 12-inch wafer plant, according to CNA. The facility is expected to produce 28 and 40-nanometer chips and have a monthly production capacity of 40,000 wafers.

According to the MOU, BIH and DNex will decide on the location of the chip facility in Malaysia, the financing structure of the deal, and the management structure and personnel at the fab, according to New Straits Times.

In June 2021, Foxconn took a 5.03% stake in DNex, CNA reported. This also gave the Taiwanese manufacturer an indirect ownership stake in the SilTerra 8-inch wafer plant in Malaysia, of which DNex owns a 60% stake.

Foxconn's latest move follows a February announcement that it plans to build a chip plant in India with local resources conglomerate Vedanta, Nikkei said. It also purchased a chip facility in Hsinchu in 2021 to make silicon carbide chips for cars, according to Nikkei.