Foxconn and DNeX build and operate wafer fab in Malaysia

BIH is a wholly-owned subsidiary of Foxconn, and is the investment entity for Foxconn’s semiconductor related activities. The parties have signed a Memorandum of Understanding (MoU) to collaborate on establishing and operating the semiconductor fabrication facility in the country.

The new fab – once completed – is expected to produce 40,000 wafers per month, using both 28-nanometer and 40-nanometer technologies, a press release from the Malaysian company reads.

“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 the planar transistor technology. This technology node will have a long production life and have the widest range of applications,” Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX, explains in the press release.

He continues to say that the new fab is part of the group’s strategy to explore new opportunities in the technology field – as the group is looking to grow and address the strong global demand for semiconductors.

The next step under the MoU is to decide on the location of the new fab in Malaysia, hammer out the financing structure of the project, the initial management structure as well as key personnel for the 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,” says Tan Sri Syed Zainal Abidin Syed Mohamed Tahir.

The Managing Director continues to say that the project will create employment opportunities for the country’s work force and further, and perhaps more importantly, facilitate the upskilling of the country’s semiconductor workforce in the advanced semiconductor space. However, he did not specify the amount of new jobs expected to be created in the scope of the project.