Hon Hai and Guoju announce that they will jointly create Guohan Semiconductor
Source: International Electronic Business Information 2021-05-07
On the 5th, Hon Hai and Yageo jointly announced that the two companies will jointly establish a joint venture company-XSemi Corporation. The new company is expected to be established in the third quarter of this year to expand its business to the semiconductor industry, including related products. Development and sales.
According to reports, Guohan Semiconductor is expected to be established in the third quarter of this year. The production base will be located in Hsinchu City. Combining the advantages and resources of the two groups, the product range initially locks in power and analog IC products with an average unit price of less than US$2.
Hon Hai said that the establishment of Guohan Semiconductor will not only provide a stable source of semiconductors for the group's existing communication products, but also meet the transformation needs of the three emerging industries of electric vehicles, digital health, and robotics, and further enhance the group's profits.
Chen Taiming, Chairman of Yageo Group, said: "Yageo focuses on the long-term development of providing customers with one-stop procurement. This cooperation is more in line with the needs of customers to optimize the supply chain." He emphasized that this time, with the establishment of a small IC joint venture, The product line can be further expanded from passive components to semiconductor active components, providing existing customers with a more complete component supply, and bringing great room for growth to Yageo Group.
Earlier, Hon Hai Chairman Liu Yangwei said that the semiconductor industry is undergoing the biggest changes in 30 years and the industrial order will face reorganization. The proportion of semiconductors used in an electric vehicle is more than 90% of small ICs. It can be expected that Guohan Semiconductor will Play the most critical part of Hon Hai's development blueprint.
According to data, the power semiconductor product market will reach a scale of 40 billion U.S. dollars in 2025, and the analog semiconductor product market will reach 25 billion U.S. dollars.
Both Yageo and Hon Hai emphasized that they have developed excellent strategies and models in long-term cooperation with each other. They have achieved comprehensive benefits through various innovative and integrated services, and improved operational efficiency and performance for each other's groups in the ever-changing situation.