Foxconn Electronics (Hon Hai Precision Industry) is still seeking to acquire a stake in Malaysia-based 8-inch foundry house Silterra as part of a move to achieve its ambition in the chipmaking sector, according to industry observers.

Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia, reportedly intends to sell its loss-making subsidiary Silterra. Silterra is an 8-inch foundry house with monthly production capacity of 46,000 wafers.

Silterra may be able to make a turnaround under Foxconn's leadership, the observers indicated. Foxconn is capable of providing Silterra financial support as well as vast corporate resources, the observers said.

Nevertheless, some observers argue that Malaysia should keep its homegrown foundry house as the overall foundry market particularly the 8-inch foundry looks promising in 2021.

Foxconn chairman Young-Way Liu has confirmed the company's participation in the bid for Silterra, and expects the bidding results to be released by the end of this year.

Foxconn has been growing its semiconductor business, with affiliates including fab toolmaker Foxsemicon Integrated Technology, backend house Shunsin Technology, IC design house Fitipower Integrated Technology and IC design services provider Socle Technology.

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