When it comes to Foxconn (Hon Hai), everyone’s first reaction is probably that Foxconn has produced iPhones for Apple OEMs, and Apple is indeed Foxconn’s largest customer. More than one million Foxconn employees are serving Apple. However, Apple is too important for Foxconn. This year, Apple’s iPhone sales are not strong (Apple’s official does not recognize this), which will cause Foxconn to cut 20 billion in expenses next year and lay off employees.
Foxconn has a large number of parts production R&D business in addition to the OEM assembly business. In recent years, it has been in love with the semi-conductor business, and now it is entering the semi-conductor market. Recently, Foxconn's JingDing Precision Nanjing Semiconductor Industrial Base and semiconductor equipment manufacturing project was officially signed, investing 2 billion yuan, mainly in semiconductor high-end equipment, and the Nanjing Pukou Economic Zone where they settled also has Taiwanese semiconductor companies such as TSMC and Riyueguang.
Foxconn's Jingding Precision Co., Ltd. is established in Zhunan Base, Hsinchu Science Park, Taiwan. It has a global base in the United States and China. Its main business is manufacturing semiconductor-related equipment, which is used in the field of semiconductor equipment and LCD equipment industry. Including thin film deposition equipment, etching equipment, testing equipment, laser application equipment and automated transmission equipment.
Nanjing Semiconductor Industry Base and Semiconductor Equipment Manufacturing Project has a total investment of 2 billion yuan, covers an area of 426.5 acres, and has a construction area of 390,000 square meters. The first phase of the project is scheduled to begin in March 2019 and is expected to be completed and put into production by the end of 2019.
The project will create an intelligent manufacturing industrial park focusing on high-end semiconductor equipment,covering high-end semiconductor equipment,intelligent manufacturing, complete machine and parts development. The project will further optimize the smart manufacturing industry chain in the development zone and provide strong support for the park in terms of smart terminals.
In the strategy of founder Guo Taiming,Foxconn has been trying to transform and reduce its dependence on Apple's OEM assembly. Among them, the entry into high-end semiconductors has always been Foxconn's goal. Foxconn's semiconductor project in Nanjing is just the beginning. Currently it is still producing semiconductor equipment. The semiconductor service is only a front-end process auxiliary process such as wafer grinding and wafer inspection, and has not yet penetrated into the core of semiconductor manufacturing.
In the process of Toshiba's sale of the TMC flash business unit last year, Foxconn's $27 billion bid was the highest, but the Japanese government restricted the sale of high-end semiconductor business to companies close to the mainland, and Foxconn failed to do so.
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