KUALA LUMPUR: Dagang Nexchange Bhd (DNeX) and Big Innovation Holdings Limited (BIH), a wholly-owned subsidiary of Hon Hai Precision Industry Co Lid (Foxconn), plan to set up a joint venture company to build and operate a new 12-inch wafer fabrication plant in Malaysia. DNeX, in a statement, said it had inked a memorandum of understanding (MoU) to collaborate on establishing and operating the semiconductor fabrication facility in the country. "The entry into the MoU forms a basis of commitment between the company and BIH to undertake the agreed role and responsibilities in creating a mutual understanding of the strategy and business needs between the parties," DNeX said. Under the MoU, DNeX and BIH will work together to decide the location of the new fabrication plant in Malaysia, financing structure of the project, and initial management structure and key personnel of the new plant. This will enable broader understanding for the benefits and opportunities of working with each other and create opportunities for future partnerships for the parties in relation to the proposed project, it added. If the plan materialises, it will be in line with the Malaysian government's national push to build up its semiconductor industry and mark another big step for Foxconn to enlarge its presence in the semiconductor field - a crucial move in furthering its EV ambitions. Fabs take years to build and the world's current silicon shortage is showing signs of slowing down. But that hasn't stopped the likes of Intel, Samsung, and TSMC making colossal investments in manufacturing facilities in the expectation that demand will eventually rise, and made-in-China chips will likely be less attractive and/or accessible to buyers. Most of those construction projects are taking place in nations that already host significant semiconductor manufacturing capacity. Foxconn appears to be chasing opportunities elsewhere, having already targeted India for a new factory in another joint venture. Source: The Stars, 17 May 2022