Apple Supplier Foxconn To Buy $90.7M Wafer Fab In Bid To Ramp Up EV Foray

Apple Inc AAPL supplier Hon Hai Precision Industry Co., Ltd HNHAF, also known as Foxconn, said Thursday that it was buying a semiconductors plant from Macronix International in a deal worth $91 billion.

What Happened: The two Taiwan-based companies signed an Asset Transaction Agreement worth NT$ 2.52 billion, or $90.7 billion, — the deal is expected to be closed by the end of this year, as per a Foxconn statement.

The agreement would allow Foxconn to acquire a 6-inch wafer fab located in the Hsinchu Science Park in Taiwan.

Foxconn CEO Young Liu said that the acquisition signals entry of Foxconn into wide band gap semiconductors, particularly SiC (silicon carbide).

“SiC MOSFET is an important device for EV, while EV occupies the No.1 position in Foxconn’s 3+3 strategy [EV, digital health, Robotics + AI, semiconductor, advanced communication]," said Liu.

See Also: Apple Supplier Foxconn, Geely Partner On Automotive Contract Manufacturing Services

Why It Matters: Earlier this year, Foxconn confirmed that it would make electric vehicles or EVs in partnership with Chinese electric vehicle startup Byton.

Foxconn confirmed in March that it would manufacture EVs in North America by 2023. The possible reported locations for the company’s plants could be Wisconsin or Mexico. It also has a partnership with Henrik Fisker's EV company Fisker Inc. FSR.

Price Action: On Thursday, Hon Hai OTC shares closed 1.64% higher at $8.08.

Read Next: Apple Looks To Make Batteries For Apple Car In The US: Report

Photo: Courtesy of Nadkachna via Wikimedia