According to a report from Economic Daily News, on the evening of August 21st, Foxconn announced plans to expand its investments, increasing capital in its subsidiaries located in the U.S., Mexico, India, and Europe. The total investment amounts to roughly USD 840 million.

First, Foxconn announced earlier that its subsidiary, Cloud Network Technology USA Inc., has acquired shares of Foxconn Assembly LLC. The transaction is valued at USD 253 million.

Sources cited by the Economic Daily News suggests that this move is looking to boost the production capacity of its plant in Houston, Texas. Foxconn currently manufactures AI servers in three locations across North America: Mexico, Wisconsin, and Texas. This indicates that Texas is gradually becoming a key hub for AI server production.

Secondly, Foxconn announced that its subsidiary, Cloud Network Technology Singapore Pte. Ltd., has acquired shares of FII AMC MEXICO S. DE R.L. DE C.V. The transaction is valued at USD 241 million.

It is speculated by the Economic Daily News that this move is primarily aimed at increasing the production capacity of Foxconn’s subsidiary, FII (Foxconn Industrial Internet), in its Mexico plant.

FII previously stated that the initial production of the GB200 servers would start in Taiwan, with the related capacity already in place.

The first overseas production line for the GB200 servers is reportedly to be set up at the Mexico plant, which is already producing AI servers, with small-scale production of the GB200 expected to begin as early as the third quarter.

Thirdly, Foxconn announced that its subsidiary, Foxconn Interconnect Technology Limited, has acquired 197 million ordinary shares of Foxconn Interconnect Technology Singapore Pte. Ltd., valued at approximately EUR 180 million (roughly USD 200.53 million).

Per Economic Daily News, it is speculated that this move is related to Foxconn’s subsidiary, FIT (Foxconn Interconnect Technology), which previously announced the acquisition of shares in the German Auto-Kabel Group to strengthen its presence in the automotive electrification sector and expand its customer base.

Lastly, Foxconn announced that its subsidiary, Foxconn Singapore Pte Ltd, has acquired 1.203 billion ordinary shares of Foxconn Hon Hai Technology India Mega Development Private Limited, valued at approximately USD 144 million .

Reportedly, it is speculated that this investment aims to boost the capital of Foxconn’s Indian subsidiary.

As Foxconn is preparing for mass production of the iPhone 16 Pro and Pro Max in India, this year marks the first time Apple is integrating AI applications (Apple Intelligence) into the latest iPhone 16 Pro series.

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• [News] Foxconn Confirms Shipment of NVIDIA’s GB200 to Start in Q4 as Planned
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(Photo credit: Foxconn)

China’s GPU company Lisuan Technology, based in Shanghai, has averted the crisis of bankruptcy, as it secures around 328 million yuan (nearly USD 46 billion) in financing from domestic NAND/ DRAM manufacturer Dosilicon and others, according to a report by Chinese media outlet Sina.

On August 20^th, Dosilicon made an announcement, stating that it plans to invest 200 million yuan of its own funds to increase the stake in Lisuan Tech. By subscribing to an additional 5 million yuan of Lisuan’s newly registered capital, the memory company will hold approximately 37.88% of Lisuan’s equity.

On the other hand, the report notes that other investors plan to inject a total of 128 million yuan to Lisuan, subscribing to a total of 3.2 million yuan in its newly added registered capital. In total, Lisuan Tech has received 328 million yuan in financing from Dosilicon and others.

Regarding the reasons behind the investment, the report indicates that there is a certain level of synergy between Dosilicon and its target company, Lisuan Tech. As Dosilicon has already established a portfolio of both standard and niche DRAM products, its R&D team can further engage in technical collaboration with the graphics rendering chip design team at Lisuan to enhance the design capabilities of both parties.

The report, citing public information, states that Lisuan Tech, with 20 years of experience in GPU development and design, is one of the few domestic companies in China capable of providing customized high-performance GPU solutions.

The firm’s first 6nm GPU, based on its self-developed ‘Pangu’ architecture, is ready for tape-out, the report suggests. The product even boasts to offer performance on par with NVIDIA’s high-end graphics cards.

However, due to delays in securing financing, the company has fallen into difficulties, with rumors circulating that it was facing bankruptcy.

According to the data cited by the report, in 2023, Lisuan had no revenue and a net loss of 145 million yuan. In the first half of 2024, it reported no revenue and a net loss of 97.9 million yuan. The bulk of the losses was said to stem from R&D investments.

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(Photo credit: Lisuan Tech)

According to the reports from EETimes China and Blocks &Files, Western Digital (WD) is said to be considering spinning off its NAND and SSD business, which could be valued similarly to Solidigm.

Reportedly, WD plans to split into two separate business units: one focused on producing hard disk drives (HDDs) and the other on NAND flash memory and SSDs. This strategy is expected to enhance operational efficiency within each unit, allowing them to concentrate on their core strengths and ultimately achieve greater market value.

According to the report, WD CEO David Goeckeler will lead the NAND and SSD unit, while Executive Vice President of Global Operations Irving Tan will take on the role of CEO for the HDD business

Citing calculations by an analyst, the report notes that  the standalone value of WD’s NAND and SSD business could range from USD 10 billion to 22 billion. This suggests that spinning off these businesses could lead to a higher market valuation for the company.

The report states that the market has not yet fully recognized the value of WD’s NAND business, and that the combined independent value of the two companies post-split will be at least USD 30 billion, with the potential to exceed USD 40 billion.

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• [News] WD and FADU to Co-Develop Enterprise SSD Technology
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(Photo credit: Western Digital)

According to TrendForce’s latest memory spot price trend report, regarding DRAM spot prices, though the top three DRAM suppliers have not lowered their official prices, spot prices could weaken further because buyers are more passive than before. On the other hand, the ample supply of reball DDR4 chips have also depressed the momentum for DDR4’s price hike. As for NAND flash, spot traders are depleting in anticipation on a revitalization of demand for 3Q24 having perceived the sluggishness from the contract market. Details are as follows:

DRAM Spot Price:

Continuing from last week, there has been no noticeable demand rebound in the spot market. Although the top three DRAM suppliers have not lowered their official prices, spot prices could weaken further because spot buyers are more passive than before, and the demand situation for consumer electronics has yet to experience a turnaround. It is worth noting that spot prices of DDR4 products have been rising by a smaller margin compared with spot prices of DDR5 products since the start of this year. Consequently, some module houses are showing willingness to restock DDR4 products. However, there is still ample supply of reball DDR4 chips, so spot prices of DDR4 products reveal no indication of hikes. The average spot price of the mainstream chips (i.e., DDR4 1Gx8 2666MT/s) dropped by 0.35% from US$1.985 last week to US$1.978 this week.

NAND Flash Spot Price:

Spot traders are depleting in anticipation on a revitalization of demand for 3Q24 having perceived the sluggishness from the contract market. Wafer prices have dropped compared to last week, which reflect how traders are hoping to minimize their losses from inventory by attempting to finalize transactions as soon as possible amidst pessimism. Spot prices of 512Gb TLC wafers have dropped by 1.15% this week, arriving at US$3.234.

According to a report from UDN, TSMC held a groundbreaking ceremony yesterday for its Dresden, Germany plant, offering a significant boost to the EU’s efforts to stabilize its chip supply.

TSMC Chairman C.C. Wei led a team of top executives at the event, joined by key officials including German Chancellor Olaf Scholz. European Commission President Ursula von der Leyen also attended, bringing with her the announcement that the EU has approved a EUR 5 billion subsidy for the Dresden plant.

TSMC announced last August that it would partner with Bosch, Infineon, and NXP Semiconductors to establish the European Semiconductor Manufacturing Company (ESMC) in Germany.

The joint venture will construct a 12-inch wafer plant, with TSMC holding a 70% stake, while Bosch, Infineon, and NXP each hold 10%. Construction is planned to start in the second half of this year, with mass production expected by the end of 2027.

The planned fab is expected to have a monthly production capacity of 40,000 12-inch wafers on TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology.  TSMC will be responsible for the plant’s operations.

Following the U.S.-China tech war, the EU passed the “Chips Act” to fully support the development of the semiconductor industry, attracting key investments from companies such as TSMC, Intel, Belgium’s IMEC, GlobalFoundries, and GlobalWafers, all of which sought subsidies for their new European operations.

TSMC’s joint venture proposal, exceeding EUR 10 billion, stands as the largest global direct investment in Saxony’s history.

When C.C. Wei took the stage, he began by thanking the German government. He revealed that when he first met with the German Chancellor, he had prepared a polite speech to decline the offer of building a plant in Germany.

However, when the Chancellor mentioned that a budget had already been reserved for TSMC, Wei eventually found himself agreeing to the project.

C.C. Wei further highlighted that TSMC’s total investment in the German plant exceeds EUR 10 billion and is expected to create around 2,000 jobs.

He explained that the decision to locate the plant in Dresden was due to its proximity to TSMC’s customers and access to a large pool of talented individuals. Wei also pledged to continue recruiting and nurturing talent in the region, with the goal of making ESMC the most important semiconductor manufacturing hub in Europe.

Read more

• [News] TSMC Maintains Overseas Expansion Strategy, Unfazed by Geopolitical Disruptions
• [News] TSMC’s German Plant Reported to Break Ground in Weeks, Expected to Begin Production by Late 2027

(Photo credit: TSMC)