CNBC AI News, May 26 — Taiwan-based electronics manufacturing titan Foxconn (Hon Hai Precision Industry) is exploring a bid for Singaporean semiconductor testing and packaging firm UTAC Holdings, in a potential $3 billion deal that could reshape supply chain dynamics in the global chip industry, multiple sources told CNBC.
UTAC’s parent company, China’s Wise Road Capital, has engaged investment bank Jefferies to oversee the sale, with preliminary offers expected by late May, according to people familiar with the matter. Neither party has publicly commented on the potential transaction.
The move highlights Foxconn’s aggressive push to deepen its semiconductor capabilities as it diversifies beyond its core electronics assembly business. UTAC, with production bases across Singapore, Thailand, China, and Indonesia, has emerged as a strategic target due to its China-linked operational footprint—an increasingly critical factor amid U.S.-China tech tensions.
Founded in 1997, UTAC specializes in precision packaging and testing for clients spanning fabless chip designers, integrated device manufacturers, and foundries. Its technology supports applications from consumer electronics to medical devices, positioning it as a linchpin in Asia’s semiconductor ecosystem.
Though UTAC’s financial metrics remain undisclosed, analysts estimate it generates roughly $300 million in annual EBITDA. A successful acquisition would bolster Foxconn’s vertical integration strategy, allowing tighter control over critical chip components as demand surges for AI processors, automotive chips, and IoT devices.
Industry observers note the deal’s broader implications: “This signals how non-U.S. investors are actively consolidating semiconductor assets to counterbalance Western dominance,” said a Taipei-based tech analyst. “Foxconn isn’t just buying capacity—it’s securing geopolitical leverage.”
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