Electronics manufacturer and service provider Hon Hai Technology Group has moved to acquire the 6-inch wafer fab and equipment of non-volatile memory (NVM) manufacturer and integrated device designer Macronix International Co., Ltd. located in Hsinchu Science Park. The transaction, which was formalized through the signing of the Asset Transaction Agreement between the two companies, is valued at NT$2.52 billion (US$90.4 million) and is expected to be closed by the end of 2021.

Macronix President Dr. Chih-Yuan Lu and Foxconn Semiconductor Business Group President Dr. Bob Wei-Ming Chen signed the agreement while Macronix Chairman and Chief Executive officer Miin Wu and Foxconn Chairman and Chief Executive Officer Young Liu witnessed the signing of the agreement. The transaction reflects Foxconn’s commitment to its long-term “3+3” strategy and company vision and also signifies a deeper commercial collaboration between Macronix and Foxconn.

“The acquisition of the 6-inch wafer fab in Hsinchu Science Park officially signals Foxconn’s entry into the manufacture and development of wide band gap semiconductors, especially SiC, paving the way for a long-term commitment to semiconductor development. The manufacturing of SiC is in line with Foxconn’s 3+3 strategy (EV, digital health, Robotics + AI, semiconductor, advanced communication),” said Liu.

“SiC MOSFET is an important device for EV, while EV occupies the No.1 position in Foxconn’s 3+3 strategy. The 6-inch wafer fab will function as S Business Group’s headquarters in Hsinchu, the world-famous semiconductor cluster, enabling closer partnership with the semiconductor companies based in the Hsinchu Science Park”, he added.

Macronix’s Wu said the company would focus on its 12-inch wafer business, especially R&D and manufacturing of advanced 3D NAND flash and NOR flash products for them to enhance advanced technology and global competitiveness.

“Macronix is pleased to see the subject 6-inch wafer fab continue to make its contribution to Taiwan as Foxconn commits to have the fab be used as an important base for Foxconn to reinforce its semiconductor development plan and to meet the demand of electric vehicles,” said Wu.

“Considering that Macronix is advancing to take the lead in the global automotive electronics market, a closer collaboration between Macronix and Foxconn in the near future may be anticipated”, he added.

The subject 6-inch wafer fab is located in Hsinchu Science Park with completed industrial supply chain. In addition to manufacture SiC Power MOSFET, Foxconn confirmed that it will also manufacture silicon wafer products, such as MEMS, to achieve Foxconn’s strategic goals on development of semiconductors industry, electric vehicles, and digital health.