The main issue of the automotive industry today is introducing affordable electric vehicles in a situation of having a critical chip shortage problem. Malaysia in silence is one of the important chip production hubs in the world with the closure of factories during the PKP tempo of the day resulting in production problems of some of the world's major devices.
According to a Nikkei Asia report this morning, Foxconn has plans to build a chip factory in Malaysia that produces chips specifically for electric vehicle needs. A memorandum of understanding has been signed between Foxconn and local company Dagang NeXchange Berhad (DNex) to build a new chip production facility in Malaysia.
The plant is expected to produce 40,000 wafers monthly using the 20nm and 40nm technologies required by the automotive industry. The chip is then applied to the sensor, WiFi, bluetooth and micro control systems in the vehicle. The location of this new plant has not yet been announced at this time.
During the pandemic manufacturers started producing chips in more locations after seeing the impact of huge factory closures now. Malaysia is already a chip production hub in Southeast Asia with Foxconn also announcing the construction of a new plant in India, Saudi Arabia. Thailand and the United States to prevent current supply chain issues from recurring.