Foxconn Reportedly In Discussions To Buy Stake In Malaysian Tech Company DNeX

Taiwanese manufacturing giant Foxconn is reportedly engaging in talks to buy a stake in Malaysian technology company Dagang NeXchange Bhd (DNeX), sources told Bloomberg.

Interestingly enough, the Taiwanese firm lost a bidding war to DNeX a few months ago over the acquisition of chipmaker SilTerra Malaysia Sdn Bhd. According to a Bloomberg source, Foxconn could buy a minority stake in DNeX and help grow SilTerra’s business.

Sources informed the US news outlet that the situation is fluid – the discussions are ongoing and could still possibly lead nowhere. When asked separately by Bloomberg, DNeX said it cannot comment on any specific discussion while Foxconn declined to comment.

In February, DNeX and its Chinese investor partner won their bid to acquire SilTerra from Malaysian sovereign wealth fund Khazanah Nasional for RM273 million. Speaking to reporters later, Foxconn Chairman Young Liu indicated that the firm was still interested in obtaining a partnership with SilTerra.

With the world facing a crippling chip shortage, Foxconn has been expanding its footprint in the semiconductor business. Earlier this month, it entered a joint venture with fellow Taiwanese firm Yageo to form a company dedicated to making chips.

Relatedly, Foxconn itself sees the global chip shortage possibly lasting well into the second quarter of 2022.