Foxconn reportedly eyeing stake in DNeX

Mavis Tsai and Ninelu Tu, Taipei; Steve Shen, DIGITIMES Asia 0

Foxconn (Hon Hai) Technology Group is reportedly in talks for taking a certain stake in Malaysia-based Dagang NeXchange (DNeX), which owns a 60% share of 8-inch foundry house SilTerra Malaysia.

Foxconn would help DNeX expand the sale of semiconductor products rolled out by SilTerra if the acquisition talks are successful, according to a Bloomberg report.

Foxconn declined to comment on market reports.

Foxconn lost in bidding to DNeX when SilTerra was put up for sale in February 2021. DNeX and its investment partner, Beijing-based CGP Investment, won the bidding to take up a 60% stake in SilTerra.

After losing the bid, Foxconn chairman Young-Way Liu said that his firm would continue to look for opportunities to establish cooperative ties with SilTerra.

DNeX has said that it remains open to possible cooperation with potential strategic partners, but it will not comment on any specific negotiations.

However, the company said its shareholders have agreed to release 30% of shares through a private replacement. The proceeds will be used to finance its acquisition of SilTerra and other investment projects.

The firm's recent announcement that it will set up a joint venture, Xsemi, with passive component supplier Yageo to develop semiconductor parts, is part of its move to enhance its presence in the semiconductor industry.