TAIPEI, May 5 (Reuters) - Taiwan's Foxconn said on
Wednesday it has formed a joint venture with Yageo Corp
to expand its presence in the semiconductor industry,
as a global chip shortage rattles producers of goods from cars
The supply bottleneck has led to production cuts and
warnings of supply chain disruption from manufacturers across
the world this year.
Electronics manufacturing conglomerate Foxconn, which counts
tech giants such as Apple among its top clients, said
in a statement the two companies will set up a new firm in
Taiwan called XSemi Corporation.
"The semiconductor industry is facing the biggest upheaval
in the past three decades, and the industry order will face a
serious restructuring," Foxconn chairman Liu Young-way said.
"Now is undoubtedly the best timing to initiate strategic
partnerships in various segments."
Foxconn said it and Yageo are currently in discussions with
"several global semiconductor companies" and will soon announce
more collaboration plans in the semiconductor industry, without
The company, which has in recent years counted
semiconductors among its core businesses, said XSemi will focus
on making semiconductor chips, or "small IC," with average
selling prices lower than $2.00.
Taiwan's semiconductor firms are ramping up production to
tackle the global chip shortage and meet booming demand due to
the work-from-home trend during the COVID-19 pandemic.
Liu said in March the company is closely monitoring
"materials shortages" in the consumer electronics supply chain
and that could hit less than 10% of client orders, though it
described the impact as limited.
Formally known as Hon Hai Precision Industry Co Ltd, the
company has in recent months announced plans to become a major
player in the global electric vehicles market, and has said it
was in talks with "related foundries" on possible collaboration
to make chips for EVs.
(Reporting by Yimou Lee; Editing by Louise Heavens and Jan