Hon Hai Precision Industry Co (鴻海精密) is to build a joint IC packaging and testing plant in Qingdao in China’s Shandong Province as part of the company’s efforts to enter the semiconductor industry, Chinese media reported yesterday.
Among the reports that revealed Hon Hai’s plan, financial news Web site Sina.com said that Hon Hai chairman Young Liu (劉揚偉) on Wednesday signed an agreement with the Qingdao government for cooperation in technology development.
The reports said that under the accord, Hon Hai, known as Foxconn Technology Group (富士康科技集團) globally, would team up with Qingdao-based Rongkong Group (融控集團) to set up a high-end IC packaging and testing plant in the Qingdao West Coast New Zone later this year, with operations scheduled to begin next year.
The reports did not mention the financial terms of the plan or the stake the Taiwanese company would take in the joint venture.
Liu was cited in the reports as saying that high-end IC packaging and testing development is a critical part of the entire semiconductor industry and is expected to help Hon Hai upgrade its manufacturing technology.
Hon Hai’s efforts in semiconductor technology development are expected to lay a solid foundation for the company’s plans to develop emerging technologies, such as 5G applications, the Industrial Internet of Things and artificial intelligence (AI), he was cited as saying.
Liu has said that semiconductor technology is one of the core technologies that Hon Hai has set its sights on, along with AI and 5G/6G applications.
In August last year, Hon Hai formed a strategic partnership with the Zhuhai City Government in China’s Guangdong Province to enhance cooperation in semiconductor development, including IC design.
Hon Hai has been keen to transform itself from a pure hardware manufacturer into a company that can integrate its hardware and software capabilities.
Liu has said that the company has targeted electric vehicles, digital healthcare and robotics as next-generation industries.
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