SEMICONDUCTOR INDUSTRY

UPDATE

October 2020

McIlvaine Company

Table of Contents

Foxconn Breaks Ground for New Chip Plant in China

Bosch Set to Expand in Malaysia with New Plant in Penang

SK Hynix to Acquire Intel NAND Memory Business

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Foxconn Breaks Ground for New Chip Plant in China

Foxconn Electronics (Hon Hai Precision Industry) recently broke ground for an advanced semiconductor assembly and test plant in Qingdao, northeast China.

Foxconn plans to invest a total of CNY60 billion (US$8.6 billion) in the new plant project, according to sources familiar with the matter. China’s state-backed Rongkong Group will be co-financing the project.

Foxconn’s new Qingdao plant will be dedicated to providing advanced packaging technologies, such as fan-out, and wafer-level bonding and stacking, for chip solutions for use in 5G and AI related device applications, sources indicated. The plant will be ready for production in 2021 and scale up its output to commercial levels by 2025.

Foxconn’s new advanced backend plant in Qingdao is designed for monthly capacity of 30,000 12-inch wafers, the sources said.

Foxconn in 2017 set up a semiconductor subgroup to consolidate resources to grow its semiconductor business. The new Qingdao plant is believed to be part of Foxconn’s efforts to strengthen its deployments in the semiconductor field.

Over the past two years, Foxconn struck deals with China’s local governments in Zhuhai, Jinan and Nanjing regarding its participation in the local chipmaking sectors.

 

Bosch Set to Expand in Malaysia with New Plant in Penang

The German manufacturing giant has signed a Sales and Purchase Agreement (SPA) with the Penang Development Corporation for land in the Batu Kawan Industrial Park in Penang.

The company is reportedly planning to build a manufacturing facility at the industrial park which will focus on semiconductor components and sensor testing, according to a press release from MIDA (the Malaysian Investment Development Authority).

Construction of the plant is scheduled to begin in 2021 and completion of the production area and first series production to commence in 2023. Some 400 new jobs are expected to be created with the establishing of the new facility.

According to the press release, the to be facility will primarily focus on the final testing of components manufactured at Bosch Automotive Electronics’ fab in Dresden, Germany. These components comprise semiconductors used in airbag systems or engine control units, to name a few. The plant will also house R&D and training facilities.

“With the long-term forecasts for growth of semiconductor component quantities, coupled with the front-end production in Bosch’s Dresden facility in Germany, capacity expansion is required for the back-end production, which is the final testing phase of semiconductors and sensors. This new site is also intended to strengthen the matured eco-system for the semiconductor industry here in Penang,” says Simon Song, managing director of Bosch Malaysia, in the MIDA report.

 

SK Hynix to Acquire Intel NAND Memory Business

The two parties have signed an agreement under which SK Hynix will acquire Intel's NAND memory and storage

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