May 26, 2025 /SemiMedia/ — Foxconn is reportedly considering a bid of up to $3 billion for Singapore-based chip packaging and testing firm UTAC, in a move that underscores Foxconn’s growing ambitions in the semiconductor supply chain.

UTAC, founded in 1997, is currently owned by Beijing private equity firm Wise Road Capital. The company has appointed investment bank Jefferies to oversee the sale process and is expected to receive non-binding bids by the end of this month. Neither Foxconn, UTAC, Jefferies, nor Wise Road Capital has commented on the reported interest.

UTAC provides semiconductor assembly and test services for a broad range of end markets, including consumer electronics, computing, security, and healthcare. It operates manufacturing sites in Singapore, Thailand, China, and Indonesia, and has a global customer base that includes fabless companies, IDMs, and foundries across the United States, Europe, and Asia.

People familiar with the matter say that UTAC generates approximately $300 million in annual EBITDA. Its facilities in China may make it a particularly attractive target for non-U.S. strategic or financial investors, especially amid ongoing geopolitical tensions and evolving supply chain strategies.

Foxconn, also known as Hon Hai Precision Industry, is best known as a key assembler for Apple but has in recent years expanded its presence in semiconductors, viewing the sector as critical to its long-term growth. The potential acquisition of UTAC would further enhance Foxconn’s capabilities in advanced packaging and bolster its influence across a key segment of the semiconductor industry.

As U.S.-China tech tensions persist and nations look to secure chip supply chains, any transaction involving UTAC could reshape dynamics in the global packaging and testing ecosystem.