- The facility will focus on the packaging and testing of application-specific integrated circuits used in 5G communications and artificial intelligence (AI) hardware products.
- The company said that it is on track with its “3+3” group development strategy
According to a report by the South China Morning Post, Foxconn Technology Group is increasing its efforts to develop its own semiconductor supply chain in China. It has a pact to build a new factory in Qingdao. The report added that the company has signed an agreement with the government of Qingdao to develop a semiconductor packaging and testing plant. It will co-finance it with the state-backed Rongkong Group.
As per the report, according to Foxconn’s post in its official WeChat account, the facility will start construction this year. It will focus on the packaging and testing of application-specific integrated circuits used in 5G communications and artificial intelligence (AI) hardware products.
“3+3” group development strategy
The report added that company chairman Liu Young-way was quoted as saying by local media that Foxconn’s high-end semiconductor packaging and testing project is the core part of the chip design, manufacturing, and application industry supply chain. He added that it has a leading role to open up the upstream and downstream supply chains and accelerate the domestic industry’s development.
As per the report, Foxconn’s Liu was also quoted by local media as saying that the company is on track with its “3+3” group development strategy. This represents its foray into the electric vehicle, digital health, and robotics industries. It is also developing core technologies in AI, semiconductors, and 5G and future 6G mobile systems.
The report added that in late 2018, it had signed an agreement with the government of Nanjing for the construction of a new factory to build chip-manufacturing equipment as per the city’s website. The total investment was at 2 billion yuan (US$282 million).
Other deals signed
According to a China Daily report, in October 2018, Foxconn had a deal with the government of Jinan to jointly set up a 3.7 billion yuan industrial fund. This would be used to develop the city’s semiconductor sector and include establishing new chip design firms in the city. Recently, Foxconn announced that it planned to develop semiconductor design services, and semiconductor equipment and chip design operations in Zhuhai under a pact with the city’s government.