Cayman Islands, Caribbeanand International News
Monday, Oct 02, 2023


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.

Related Articles

Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
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”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
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
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
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
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
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
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner