A man with a face mask walks past the logo of Foxconn, or Hon Hai Group , which is Taiwans technology giant and the worlds leading producer of semiconductors or chips particularly for Apples devices, amid COVID-19 outbreak , in Taipei, Taiwan, 15 July 2021.
Ceng Shou Yi | Nurphoto | Getty Images
Apple iPhone supplier Foxconn, officially known as Hon Hai, said its semiconductor strategy is to focus on producing “specialty chips” — not competing in cutting-edge chips.
“We do not chase [after] the most advanced technology. Hon Hai will not compete with leading edge players like 4-nanometer or 3-nanometer. We focus more on specialty technology,” Chiang Shang-Yi, chief strategy officer for semiconductor at Hon Hai Technology Group, told CNBC’s Emily Tan on Tuesday.
Specialty chips are known as semiconductors found in sectors such as automotive and internet of things. Chips for automotive uses are typically made using mature technology – 28-nanometer or larger chips.
“Nanometer” in chips refers to the size of individual transistors on a chip. The smaller the size of the transistor, the more powerful and efficient it is, but it also becomes more challenging to develop.
The likes of Taiwan’s TSMC and South Korea’s Samsung are sprinting toward producing the highly advanced 2-nanometer and 3-nanometer chips. Samsung has already said it will mass-produce 2-nanometer chips by 2025, after the company started producing 3-nanometer chips in June last year.
“If we tried to chase 3-nanometer, 2-nanometer, we are way too late. The way we are working on [is to] just try to manage the supply chain. And we call it specialty technology – that is not late at all,” said Chiang.
Hon Hai Technology Group is the world’s largest contract electronics manufacturer that assembles consumer products like Apple’s iPhones. But in the last couple of years, the Taiwanese firm has made its foray into semiconductors and electric vehicles.
When it comes to EVs, Chiang said the focus lies in power…
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