Asia Express - East Asian ICT
TSMC and Foxconn Separately Reveal Their Strategic Plan for Semiconductor
January 07, 2021

Taiwan’s two leading companies TSMC and Foxconn separately announced their plan for semiconductor, the United Daily News reported on January 5. TSMC is set to build a JV (Joint Venture) with Japan’s METI (Ministry of Economy, Trade, and Industry) for advanced IC packaging and testing plant in Tokyo, Japan, The source said TSMC and METI will sign a MOU (Memorandum of Understanding) with each taking a 50% stake in new JV, making it TSMC’s first overseas IC packaging and testing company. TSMC has been aggressive in high-end IC packaging and testing services with an aim to provide one-stop services for clients require high-end advanced IC packaging and testing services such as WLD (Wafer-level Packaging). This new JV in Japan will likely to cater to Japanese clients who require chips in power management solutions, automotive electronics, wind energy development, and other electric machinery industries. Thus far, TSMC operates several advanced IC packaging and testing plants in Taoyuan, Hsinchu, Taichung, and Tainan to provide services for smartphone and data center brands such as Apple and AMD. The Taiwanese packaging and testing industry’s global share reaches 50% and leads the world.
Meanwhile, Foxconn recently also confirmed that the company has placed a bid for US$87 million to take over a 70% stake in SilTerra, a Malaysia-based 8-inch foundry, the Commercial Times reported on January 5. However, the source said that only local bidders with their strategic partner will be qualified to join the bid for SilTerra. In addition, the company is eyeing on investing in an advanced packaging and testing plant in Qingdao, China. The plant is slated for production in 2021 and mass production by 2025. Production value of the global packaging and testing industry is expected to have reached US$29.1 billion in 2020, up merely 0.8% year-on-year, according to MIC (Market Intelligence & Consulting Institute), a major government think tank and leading IT research institute in Taiwan. Despite the ongoing COVID-19 outbreak, MIC stated that 5G is expected to bring more packaging services for OSATs (Outsourced Semiconductor Assembly Testing) companies as brands such as Qualcomm, Samsung, Huawei, and MediaTek have increasing demand for advanced packaging services such as SiP (System in Package).