DNeX and Foxconn’s unit to build, operate new wafer fabrication plant

by TMR

Dagang NeXchange Bhd (DNeX) and Big Innovation Holdings Ltd (BIH), a wholly-owned subsidiary of Hon Hai Precision Industry Co Ltd (Foxconn), plan to set up a joint venture company (JVCo) to build and operate a new 12-inch wafer fabrication plant in Malaysia.

Both parties have signed a Memorandum of Understanding (MoU) to collaborate on establishing and operating the semiconductor fabrication facility in the country.

The new fabrication facility is expected to produce 40,000 wafers per month, encompassing the manufacturing of 28-nanometer and 40-nanometer technologies, the DNeX said in a statement today.

Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX, stated the project will allow DNeX and the country to leap forward in terms of semiconductor technology advancement as well as offer a multitude of economic spillover effects to the country.

“The New Fab will be the first 12-inch wafer fabrication plant in Malaysia initiated by a Bumiputera company. In addition, the New Fab will be operating in the 28-nanometer technology node, which is the most advanced technology node in planar transistor technology. This technology node will have a long production life and have the widest range of applications,” he said.

He added the building of the New Fab is part of the Group’s ongoing strategy to explore new opportunities in the technology field, innovate and grow as a Group and address strong global demand for semiconductors.”

Under the MoU, DNeX and BIH will work together to decide the location of the New Fab in Malaysia, financing structure of the project, and initial management structure and key personnel of the New Fab.

“The New Fab will further strengthen DNeX’s position in semiconductor foundry as well as complement the Group’s business in this segment via its existing investment in SilTerra Malaysia Sdn Bhd, in such areas as best practices and technology excellence,” said Syed Zainal Abidin.

BIH is a wholly-owned subsidiary of Foxconn, and is the investment entity for Foxconn’s semiconductor related activities.

Foxconn is the world’s largest electronics manufacturer and also a leading technology solution provider which continuously leverages its expertise in software and hardware to integrate its unique manufacturing systems with emerging technologies.