Why Foxconn is buying a memory manufacturer’s factory

Honghai Precision Industries announced that it has acquired a 6-inch wafer manufacturing plant from Macronics (Mong Hong-Electron).

🟩In-house production of SiC power semiconductors

Honghai Precision Industries, Taiwan’s largest electronics outsourced manufacturer, has agreed to acquire 6-inch wafer fabs and equipment from fellow Taiwanese non-volatile memory maker Macronics. The transaction is valued at NT$2.52 billion (approximately ¥10 billion) and is expected to close by the end of 2021.

Hong Hai plans to use the acquired 6-inch fab to manufacture and develop wideband gap semiconductors, specifically SiC. As a long-term approach to semiconductor development, we are considering manufacturing silicon wafer products such as MEMS.

🟩 Long-term Corporate Vision 3 + 3 Strategy

The acquisition of Wafer Fab reflects Hong Hai’s long-term corporate vision 3+3 strategy (EV, Digital Health, Robotics + AI, Semiconductors and Advanced Telecommunications).

As the company announced the establishment of the MIH Alliance, a particularly important EV EV alliance, EV

occupies the No. 1 position in Hong Hai’s 3+3 strategy. SiC MOSFETs in particular have become important devices for EVs.

SiC is mainly 6 inches

McRonics (Mong Hong-Electron), which researches and develops and manufactures 3DNAND Flash and NOR Flash products, reportedly sold its 6-inch fab to focus on its 12-inch wafer business. On the other hand, the SiC that Hong Hai is working on is still mainstream with 6-inch wafers.



Hong Hai acquires Macronics fab to manufacture semiconductors for EVs in-house

This means that the EV ecosystem will be the center of effective use of legacy semiconductor fabs in Taiwan. It would be good if Japan with an automobile industry could also devise such a method.

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