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Apple Supplier Foxconn Says It’s ‘Way Too Late’ to Chase Dominance in Cutting-Edge Chips

Foxconn, formally known as Hon Hai, is a supplier of Apple iPhones. Its semiconductor strategy, according to the company, is to concentrate on developing “specialised chips” rather than competing in cutting-edge semiconductors.

The most cutting-edge technology is not something we pursue. Hon Hai won’t go up against cutting-edge rivals like 4-nanometer or 3-nanometer. Chiang Shang-Yi, chief strategy officer for semiconductors at Hon Hai Technology Group, told CNBC’s Emily Tan on Tuesday that “we concentrate more on speciality technology.”

Semiconductors, which are used in industries like the automobile and internet of things, are referred to as specialty chips. Chips for automotive applications are typically produced using established technology, typically in the 28-nanometer range.

Chips’ “nanometer” measurement describes the size of each transistor within. The transistor is more effective and powerful as its size decreases, but it is also more difficult to develop.

Companies like South Korea’s Samsung and Taiwan’s TSMC are working quickly to produce the ultra-advanced 2-nanometer and 3-nanometer chips. Following the launch of its 3-nanometer chip manufacturing in June of last year, Samsung has already stated that it will begin mass producing 2-nanometer chips by 2025.
“If we attempted to pursue 3-nanometer and 2-nanometer, we would already be far too late. Simply trying to manage the supply chain is the approach we are taking. It is not at all late, and we refer to it as speciality technology, said Chiang.

Source (CNBC)

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