Yageo and Foxconn yesterday jointly announced the establishment of a joint venture company, XSemi Corporation, to develop and sell semiconductors.

Pierre Chen, chairman of Yageo Group, said that Xsemi is expected to be established in the third quarter of this year and will initially focus on power and analog semiconductor products with an average unit price of less than two US dollars. At present, it has started discussions with a number of world-class semiconductor companies, and will announce cooperation projects in related semiconductor fields in the near future.

"Through the establishment of the joint venture, Yageo's product line can be further expanded from passive components to semiconductor devices, providing existing customers with a more complete component supply chain," Pierre Chen added.

Foxconn said that the semiconductor industry is currently undergoing the biggest changes in 30 years, and the industrial order will be reorganized. Now is undoubtedly the best time for multi-party strategic cooperation. Xsemi will play the most critical part of Foxconn's development roadmap.