According to reports, Foxconn's parent company, HON HAI PRECISION INDUSTRY, is evaluating plans to build two 12-inch fabs, and has recently made structural adjustments to set up a "semiconductor sub-group", which covers semiconductors. Circle and equipment manufacturing, wafer design, software and memory devices.
HON HAI’s interest in the semiconductor industry began as early as last year. When Toshiba sold its flash memory business, Hon Hai had been actively bidding, and the bid was the highest among all consortiums, but at the end it was unsuccessful because of the Japanese government’s reasons. However, for HON HAI, it is not surprising that they have invested in semiconductor wafer manufacturing.
Foxconn Group now has a number of semiconductor-related subsidiaries and will be led by the Semiconductor Business Group in the future. These subsidiaries include Foxsemicon, Shunsin Technology and Fitipower. Among them, Foxsemicon mainly manufactures some of the semiconductor manufacturing equipment. Shunsin is a semiconductor back-end enterprise and is responsible for system module product packaging. Fitipower is a chip design company that mainly develops liquid crystal display driver chips.
The manufacture of wafer is a huge and expensive project. Not only the huge investment for the construction of factories require investment, but also in semiconductor manufacturing processes, manufacturers need to accumulate technology and establish talented teams, and HON HAI does not accumulate in the field of wafer manufacturing. If HON HAI wants to build a fab, they may need to hire employees from the other related enterprise to build a technical team.