Foxconn To Build New 12-Inch Wafer Fab In Malaysia!

Foxconn just announced that they will be building a 12-inch wafer fab in Malaysia!

Here is what you need to know…


Foxconn To Build New 12-Inch Wafer Fab In Malaysia!

On 17 May 2022, Foxconn announced that their wholly-owned subsidiary, Big Innovation Holdings Limited (BIH) will form a joint venture company with Dagang NeXchange Berhad (DNeX), to build and operate a new 12-inch wafer fabrication plant in Malaysia.

Both DNeX and BIH have signed a Memorandum of Understanding to collaborate on build and operate the new 12-inch wafer fab.

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 is expected to produce 40,000 wafers a month, using 28-nanometer and 40-nanometer process technologies developed in 2011 and 2008 respectively.

The 28nm and 40nm process technologies are not new, but they are still in high demand for less complex chips used in industrial, consumer electronics and automotive applications.


New 12-Inch Foxconn Wafer Fab In Malaysia : Not A Done Deal

While this is exciting news for Malaysia, it is not a done deal. Both companies only signed a Memorandum of Understanding, not a contract.

There are no concrete details of where the wafer fab will be located, or how much Foxconn will invest. It is also unknown how many jobs this project would create.

One would do well to remember the $10 billion project that Foxconn announced with the Trump Administration in July 2017.

Foxconn was supposed to build and operate a 20-million square foot manufacturing campus in Wisconsin, that would build flat panel displays, and create 13,000 jobs, in return for $3 billion in subsidies.

In the end, that massive flat panel project was abandoned and downsized into a network operations and storage centre worth about $672 million, creating only 1,454 new jobs.


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