Foxconn to Build New Chip Plant in China’s Qingdao

[Stranagor]

Foxconn to Build New Chip Plant in China’s Qingdao

DOU SHICONG
DATE: APR 16 2020
/ SOURCE: YICAI

Foxconn to Build New Chip Plant in China’s Qingdao

(Yicai Global) April 16 -- Hon Hai Precision Industry, the world’s largest contract electronics maker better known as Foxconn, will build a high-end semiconductor chip manufacturing and testing plant in Qingdao in China’s eastern Shandong province.

The new plant will be jointly funded by Foxconn and the local government, the Taipei-based company said on its WeChat account today, without disclosing the investment amount.

This is the latest in a series of major China-based investments by Foxconn. In 2017, the firm signed a CNY37.6 million (USD5.3 million) deal with the Nanjing government to develop six projects including the manufacture of semiconductor devices and liquid crystal display televisions. Last July, production started at Foxconn’s 10.5 generation LCD factory in Guangzhou. At the end of 2018, the firm also unveiled plans to build a USD9 million wafer plant in Zhuhai, Guangdong province.

Located in Qingdao’s West Coast New Area, construction of the new plant will start this year. Production is expected to begin next year and reach full capacity by 2025, according to the deal signed yesterday.

Using the world’s foremost packaging and testing technologies, the plant will build chips for fifth-generation telecoms, image sensors and artificial intelligence devices. It will help drive the transformation of the integrated circuit industry in the coastal city, Foxconn said.

Editor: Kim Taylor

https://www.yicaiglobal.com/news/foxconn-to-build-new-chip-plant-in-china-qingdao

 

[艹艹艹]

Foxconn recently broke ground for an advanced semiconductor assembly and test plant in Qingdao
Wednesday 22 July 2020

Foxconn Electronics (Hon Hai Precision Industry) recently broke ground for an advanced semiconductor assembly and test plant in Qingdao, northeast China.

Foxconn plans to invest a total of CNY60 billion (US$8.6 billion) in the new plant project, according to sources familiar with the matter. China's state-backed Rongkong Group will be co-financing the project.

Foxconn's new Qingdao plant will be dedicated to providing advanced packaging technologies, such as fan-out, and wafer-level bonding and stacking, for chip solutions for use in 5G and AI related device applications, sources indicated. The plant will be ready for production in 2021 and scale up its output to commercial levels by 2025.

Foxconn's new advanced backend plant in Qingdao is designed for monthly capacity of 30,000 12-inch wafers, the sources said.

Foxconn in 2017 set up a semiconductor subgroup to consolidate resources to grow its semiconductor business. The new Qingdao plant is believed to be part of Foxconn's efforts to strengthen its deployments in the semiconductor field.

 

[Paul2]

Foxconn recently broke ground for an advanced semiconductor assembly and test plant in Qingdao
Wednesday 22 July 2020

Foxconn Electronics (Hon Hai Precision Industry) recently broke ground for an advanced semiconductor assembly and test plant in Qingdao, northeast China.

Foxconn plans to invest a total of CNY60 billion (US$8.6 billion) in the new plant project, according to sources familiar with the matter. China's state-backed Rongkong Group will be co-financing the project.

Foxconn's new Qingdao plant will be dedicated to providing advanced packaging technologies, such as fan-out, and wafer-level bonding and stacking, for chip solutions for use in 5G and AI related device applications, sources indicated. The plant will be ready for production in 2021 and scale up its output to commercial levels by 2025.

Foxconn's new advanced backend plant in Qingdao is designed for monthly capacity of 30,000 12-inch wafers, the sources said.

Foxconn in 2017 set up a semiconductor subgroup to consolidate resources to grow its semiconductor business. The new Qingdao plant is believed to be part of Foxconn's efforts to strengthen its deployments in the semiconductor field.

I will look closely how the their talks with Zhuhai go. I do remember, Zhuhai being adamant about standing its ground on the land deal, and Honhai being equally so in being able to make the fab as close to Shenzhen as possible.

USD $8.6B is just enough or a mid-tier, 45nm plant, or possibly 22nm plant. The 30,000 WPM mark seems to confirm this being a limited scale fab.

It may be just a scare to extract concessions from Zhuhai, and make them think that the big fish, the megafab(100k+ WPM) deal may escape them.