Foxconn recently announced that it has formed a JV with Taiwan-based passive component supplier Yageo, with an aim to jointly tap the booming demand for chips from cars to electronics, the Commercial Daily reported on May 6. Located in Hsinchu, Taiwan, the JV named XSemi Corporation will focus on fabricating chips or small ICs with an average selling price lower than US$2, slated for operations in the third quarter of 2021. Over the years, Foxconn is capable of providing semiconductor equipment, design services, IC design in 5G, AI, CIS (CMOS image sensors), and display driver, foundry fabs, and advanced packaging services. In addition, the company has been dedicated to emerging industries like electric vehicle, digital health, and robotics. Yageo’s capabilities lie in key component production and management. This is a follow-up after two companies formed a strategic alliance in September 2020 to jointly develop solutions and services for the abovementioned emerging industries. Output value of the global and Taiwan’s semiconductor industry is estimated to reach US$475.3 billion and NT$3.4 trillion (US$ 121.4 billion; US$1 = NT$28) in 2021, respectively, according to MIC (Market Intelligence & Consulting Institute), a major government think tank and IT research institute in Taiwan.