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.