Apple Supplier Foxconn Eyes Stake In Malaysian Chipmaker To Further EV Push: Report

The iPhone assembler Hon Hai Precision Industry Co., Ltd. HNHPF is making a move that could serve it well amid a global semiconductor shortage.
What Happened: Hon Hai, popularly known as Foxconn, is looking to take a minority stake in Malaysia-based Dagang NeXchange Bhd., Bloomberg reported, citing people familiar with the matter.

The purported move is done with the intent to help expand the Malaysian tech company's chip business, SilTerra Malayaia Sdn., the report said.

Incidentally, DNeX, along with a Chinese investor, outbid Foxconn in a bidding war for SilTerra in February and acquired the local chipmaker.

A DNeX spokesperson told Bloomberg the company is open to discussions with strategic partners and investors.

Related Link: How to Buy Foxconn Stock in the U.S.

Why It's Important: A stake in DNeX would give Foxconn access to more chip supplies at a time when it is dipping its heel into the hot-and-happening electric vehicle market.

Last October, the Taiwanese contract manufacturer established a MIH platform, its open software and EV chassis platform for developing EVs. The company is also looking at locations in North America to set up its own EV manufacturing plant.

Foxconn has struck EV partnerships with the Chinese automaker Geely Automobile Holdings Limited GELYF, Stellantis N.V. STLA as well as the U.S. pure-play EV manufacturer Fisker Inc. FSR.

Related Link: Fisker Strikes Partnership With Foxconn's Sharp Unit To Make EV Displays