Following the announcement of its collaboration with energy group PTT to build electric vehicles (EVs) in Thailand at the end of last month, Apple supplier Foxconn has entered into another working relationship, this time in Malaysia.
Local technology firm Dagang NeXchange (DNeX) has announced that the Taiwanese company’s subsidiary, Foxconn Singapore, has become a substantial shareholder in DNeX with its acquisition of 120 million shares from DNeX’s existing shareholders, giving it a 5.03% stake in the Malaysian company.
This is expected to pave the way for a strong working relationship between both parties, said DNeX group MD Tan Sri Syed Zainal Abidin Syed Mohamed Tahir. He said potential areas for collaboration between DNeX and Foxconn are semiconductor and downstream products, EVs and businesses related to the EV value chain.
“DNeX is always open to any collaboration with strategic partners and investors that can bring value to the group. We foresee that this latest development can bring great potential to DNeX and we believe Foxconn’s entry can offer opportunities to unlock and create value across the high-technology sector’s value chain and beyond,” he said.
Separately, DNeX said it is currently finalsing its acquisition of SilTerra Malaysia from Khazanah Nasional. In March, DNeX and Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center inked a deal to purchase the loss-making semiconductor manufacturer for RM273 million. DNeX will own 60% of the company.
Syed Zainal said the outlook for the semiconductor sector is expected to stay bullish with increasing demand continuing up to 2024, which could lead to sustainable positive earnings for SilTerra and DNeX. “This makes the acquisition of SilTerra timely and strategically compelling for DNeX. We are confident that our business in the semiconductor market will grow at a strong pace,” he added.
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