Foxconn to Build $ 9 Billion Chip Factory

Foxconn would be going strong in the chip manufacturing business. Foxconn, and the Chinese city of Zhuhai, along with other investors, are planning to invest more than $ 9 billion in a chip factory, and construction is scheduled for 2020.

Foxconn aims to compete with TSMC in custom chip manufacturing

TSMC's only real competitor in the cutting-edge chip manufacturing business is Samsung, and it remains to be seen whether Foxconn can compete with the high-end manufacturing processes they are routinely doing, including processors and SoCs.

Most of the investment is being subsidized by Zhuhai for what will be one of China's largest high-tech projects, according to sources.

The Taiwanese company will manufacture chips not only for its own use, but for other customers as well, putting it in direct competition with major industry players in contract chip manufacturing, such as TSMC, U.S.- based Globalfoundries, Samsung Electronics and Semiconductor Manufacturing International Co. from China, sources told Nikkei .

Foxconn is expected to form a joint venture for the project with Japanese electronics group Sharp, which it acquired in 2016, and the Zhuhai government. Sharp is the only Foxconn subsidiary with experience in chip manufacturing. However, the Japanese company stopped developing semiconductor technology when it had financial problems in 2010.

It was recently learned that Foxconn manufactured the new high-end iPhones in India, which would help that country's economy. In that country, the Taiwanese company also plans to make an investment of $ 356 million to expand its facilities.

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