KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) is setting up a joint venture (JV) company with Big Innovation Holdings Ltd (BIH) to build and operate a new 12-inch wafer fabrication plant in Malaysia.
BIH is a wholly-owned subsidiary of Taiwan-based Hon Hai Precision Industry Co Ltd (Foxconn).
Foxconn is the world's largest electronics manufacturer.
The company is also a leading technology solution provider which continuously leverages its expertise in software and hardware to integrate its unique manufacturing systems with emerging technologies.
Both parties have signed a Memorandum of Understanding (MoU) to collaborate on establishing and operating the semiconductor fabrication facility in the country.
DNeX said the plant was expected to produce 40,000 wafers per month, encompassing the manufacturing of 28-nanometer and 40-nanometer technologies.
Group managing director Tan Sri Syed Zainal Abidin Mohamed Tahir said the project would allow the company and the country leap forward in terms of semiconductor technology advancement as well as offer multitude of economic spillover effects to the country.
"The new plant will be the first 12-inch wafer fabrication plant in Malaysia initiated by a Bumiputera company.
"In addition, it will be operating in the 28-nanometer technology node, which is the most advanced technology node in the planar transistor technology.
"This technology node will have a long production life and have the widest range of applications," he said in a statement today.
Syed Zainal added that the building of the plant was part of the company's ongoing strategy to explore new opportunities in the technology field, innovate and grow as a company and address strong global demand for semiconductors.
Under the MoU, DNeX and BIH will work together to decide the location of the plant in Malaysia, financing structure of the project, and initial management structure and key personnel of the plant.
"The plant will further strengthen DNeX's position in semiconductor foundry as well as complement the group's business in this segment via its existing investment in SilTerra Malaysia Sdn Bhd, in such areas as best practices and technology excellence," Syed Zainal added.