Tata Electronics is reportedly in advanced talks to acquire a semiconductor facility in Malaysia, with DNeX's SilTerra among the top targets. Notably, Foxconn already holds a stake in DNeX and previously signed an MoU to build a 12-inch fab, underscoring growing global interest in Malaysia's chipmaking potential.
The Economic Times, citing sources, reported that Tata Electronics is in advanced discussions with several semiconductor firms—including X-FAB, Dagang NeXchange Berhad (DNeX), and Globetronics Technology Berhad—to acquire a fabrication or outsourced semiconductor assembly and test (OSAT) plant in Malaysia. The move is seen as a strategic step by the Tata Group to accelerate its entry into the semiconductor assembly, testing, and packaging (ATMP) business in India.
The acquisition efforts are being spearheaded by KC Ang, who took over as President and Head of Tata Semiconductor Manufacturing in April 2025. Sources indicate that DNeX's SilTerra facility and Globetronics' OSAT operations are among the top candidates under evaluation. Talks have been ongoing since April.
According to the report, Malaysia provides a cost-effective entry into the global semiconductor industry. For Tata, it offers a chance to gain operational expertise and train Indian talent in managing advanced semiconductor facilities.
Parv Sharma, senior analyst at Counterpoint Research, explains that if Tata were to secure a partnership or establish a presence in Malaysia, it would significantly accelerate its ATMP capabilities. He adds that it would also help de-risk its operations from current semiconductor tariffs and strengthen global supply chain resilience.
About Globetronics, DNeX, and X-FAB
Globetronics, a Penang-based OSAT firm, has faced financial headwinds, making it a potential acquisition target. Danish Faruqui, CEO of consultancy Fab Economics, noted that the company has undergone board changes and is exploring strategic partnerships to diversify revenue streams.
SilTerra, owned 60% by DNeX and 40% by China's CGP Fund, is another attractive target. Based in Kulim, the foundry provides fabrication services for a wide range of chip technologies. DNeX acquired its stake in 2021 for approximately US$64 million. Fab Economics considers SilTerra a "lucrative" option for Indian companies seeking low-cost, high-fidelity tech licensing in semiconductor manufacturing.
Notably, in 2022, Foxconn's subsidiary Big Innovation Holdings signed an MoU with DNeX to create a joint venture for a 12-inch wafer fab in Malaysia, aiming to produce 40,000 wafers monthly using 28-40nm process nodes. However, no progress has been reported since. Besides, in 2021, Foxconn indirectly invested in Malaysia-based 8-inch wafer foundry SilTerra by acquiring approximately 5.03% of DNeX.
German-based X-FAB operates six global fabs, including one in Kuching, Malaysia. The company is expanding its capacity for 0.18mm and 0.11mm CMOS technologies and is transitioning its German facility to focus on microsystems and MEMS. It is also ramping up its SiC foundry capacity in the US, supported by a proposed US$50 million CHIPS Act grant.
While X-FAB continues to invest in global expansion, recent updates for DNeX and Globetronics are limited.
Article edited by Jack Wu
