Foxconn buys stake in Malaysian tech firm DNeX – potential areas of collaboration to include EVs

Foxconn buys stake in Malaysian tech firm DNeX – potential areas of collaboration to include EVs

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.

Foxconn buys stake in Malaysian tech firm DNeX – potential areas of collaboration to include EVs

“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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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Kedahan aman on Jun 15, 2021 at 6:32 pm

    All over the world, all semiconductor & chip makers raked in huge profits due to shortage!

    but this local managed and owned SilTerra from Khazanah Nasional, rugi besor…
    That is epic fail! Itu nama nye Gagal hoi!!

    Like or Dislike: Thumb up 7 Thumb down 3
    • Calvin on Jun 16, 2021 at 10:27 am

      Eh what? Silterra is making crazy profits like mad. My shares are going up and up and up. Stop this fake nonsense I know you are trying to shortsell their shares. Such selfishness for shortterm profits. Begone with you!!!

      Like or Dislike: Thumb up 9 Thumb down 4
      • p.mageran on Jun 16, 2021 at 2:29 pm

        Anneh…you needed to read the article, clearly stated – The loss-making semiconductor manufacturer. So is memang Gagal maksimum koyak, poda illek.

        Like or Dislike: Thumb up 3 Thumb down 1
        • That’s the weirdest thing to say bro. Silterra is making money, so where is the proof they are loss making bro?

          Like or Dislike: Thumb up 2 Thumb down 0
  • lol foxconn is known for fail acquisition and used it as lever for milking incentive. With this shell it will milk malaysia millions a year and run it to ground by next decade.

    Like or Dislike: Thumb up 4 Thumb down 1
  • Alice on Jun 15, 2021 at 10:24 pm

    Time to sauk more DneX TP RM2.. hihi

    Like or Dislike: Thumb up 1 Thumb down 0
  • Rakyat Malaysia on Jun 16, 2021 at 10:25 am

    Syukur FDI masuk Mesia berlimpah billion RM. Mesia Berjaya!

    Like or Dislike: Thumb up 5 Thumb down 0
  • maresia more advance one, not aiming for EV but flying car

    Like or Dislike: Thumb up 4 Thumb down 0
  • Aero (Member) on Jun 16, 2021 at 8:09 pm

    Just want to point out, the current DNeX MD is none other than TS Syed Zainal Abidin… former CEO of Petronas Dagangan. But he’s probably best known for being MD of Proton from 2006 to 2012. He’s one of the few local minds with Midas’ touch. This could very well be the start of something new and big… not just for DNeX, but for the future of our auto industry. Time will tell.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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