Asia Express - East Asian ICT
Foxconn to Build New 12" Fab in Malaysia for Electronic Vehicle Chips
May 18, 2022

Taiwanese Foxconn recently announced that it has entered a MoU (Memorandum of Understanding) with Malaysia's DNex (Dagang NeXchange Berhad) through a 100% subsidiary BIH (Big Innovation Holdings) to build a new fab for 12-ich automotive chips in Malaysia, the United Daily News reported on May 18. The new fab is anticipated to churn out 40,000 wafers using 28nm and 40nm process nodes and the capex for the fab is estimated at between US$3 billion and US$5 billion. Foxconn owns about 5% stake in DNex. In addition to Foxconn, Taiwanese leading foundries TSMC and UMC have also separately invested in a new 12" fab using 28nm process technology in Japan and Singapore, respectively. Shipment value of the Taiwanese semiconductor industry scored US$36.1 billion in the fourth quarter of 2021, up 1.7% sequentially and 30.5% year-on-year, according to MIC (Market Intelligence & Consulting Institute), one of leading IT research institutes in Taiwan, and a division of the III (Institute for Information Industry). By subindustry, shipment value of the Taiwanese semiconductor manufacturing subindustry, comprising of foundry and memory sectors, reached US$19.4 billion in the fourth quarter of 2021, up 4.9 sequentially and 27.5% year-on-year. During the forecasted period 2021-2024, MIC estimates Taiwan's foundry industry will witness a CAGR (Compound Annual Growth Rate) of 10%, followed by IC design's 7.9%, memory's 7.5%, and IC packaging and testing's 7.2%. Global semiconductor market is estimated to grow 10.1% year-on-year in 2022, reaching US$606.5 billion, respectively, according to MIC. It is forecast that sales of global EVs will grow from 11 million units in 2020 to 145 million and 230 million units by 2030 and the CAGR (Compound Annual Growth Rate) over the period is estimated at 30%.