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Foxconn Invests NT$500 Million to Acquire a 10% Stake in TAISIC Materials, Strengthening Its SiC Substrate Supply Chain for Electric Vehicles

Taipei, July 8 (CNA) – Foxconn announced this afternoon that it would participate in a fundraising round by TAISIC Materials. Through its subsidiary, Hong Yuan International Investment, Foxconn acquired 5,000 lots (5 million shares) at NT$100 per share, representing a total investment of NT$500 million for a 10% equity stake.

Foxconn stated that the investment would secure access to key materials in the third-generation semiconductor silicon carbide (SiC) supply chain. Through this investment, Foxconn aims to ensure a stable supply of SiC substrates and establish long-term competitive advantages in the automotive semiconductor sector.

Semiconductors are one of the three core technologies under Foxconn's "3+3" strategy. In addition to meeting the demand for small ICs from existing information and communications technology customers, third-generation semiconductors are becoming increasingly important in the electric vehicle industry. SiC metal-oxide-semiconductor field-effect transistors (MOSFETs) are expected to be widely used in electric vehicle applications, including onboard chargers and DC-DC converters.

Last year, Foxconn acquired a 6-inch wafer fabrication facility and established Hong Yang Semiconductor. The company plans to complete the construction of its SiC production line this year. Through its partnership with TAISIC Materials, Foxconn's subsidiary, Hong Yang Semiconductor, will secure a stable supply of upstream SiC substrates.

Founded in 2020, TAISIC Materials is one of the few manufacturers in Taiwan capable of producing both 6-inch N-type conductive and 6-inch semi-insulating (SI) SiC wafer substrates. With its expertise in high-quality crystal growth, TAISIC Materials is expected to complement Foxconn's capabilities across the SiC supply chain.

Chen Wei-Ming, General Manager of Foxconn's Semiconductor S Business Group, stated that SiC is an essential component for electric vehicles and that substrates are a critical material in the SiC supply chain. Substrates not only account for a significant portion of SiC device costs but also directly affect device quality. Through this investment, Foxconn aims to secure a reliable supply of this critical material.

Hsieh Ming-Kai, Chairman of TAISIC Materials, stated that TAISIC was jointly established by Kenmec Mechanical Engineering and its subsidiary, Tainergy Tech, as a company specializing in SiC crystal growth. By leveraging Kenmec's in-house crystal growth equipment capabilities, TAISIC has developed key technological expertise in SiC substrates.

With Foxconn's investment, Hong Yang Semiconductor will also be able to assist TAISIC Materials in qualifying its substrate quality, thereby accelerating the development of TAISIC's products.

Following the investment, Foxconn will become TAISIC Materials' second-largest shareholder, behind Tainergy Tech, which holds a 47.7% stake. Kenmec Mechanical Engineering holds approximately 7.4%, making it the third-largest shareholder.

TAISIC Materials has also introduced additional investors in this fundraising round, including Avision Inc. (2455), Sino-American Silicon Products Investment, and Japan-based Huadao.

Source: Central News Agency (CNA), Taiwan

https://www.cna.com.tw/news/afe/202207080183.aspx