Foxconn emerges as new substantial shareholder of DNeX

KUALA LUMPUR: Hon Hai Precision Industry Co Ltd’s subsidiary Foxconn Singapore Pte Ltd has emerged as a substantial shareholder of Dagang NeXchange Bhd (DNeX) with a 5.03 per cent stake.

The Cyberjaya-headquartered technology firm said it had received an official notification from Foxconn on June 13, 2021, that the latter had acquired 120 million shares from DNeX’s existing shareholders.

DNeX group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the group was always open to any collaboration with strategic partners and investors that could bring value to it.

“We foresee 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 value chain and beyond,” he said in a statement today.

Syed Zainal Abidin said potential areas for collaboration between DNeX and Foxconn were semiconductor and downstream products, electric vehicle and businesses related to the electric vehicle value chain.

Moving forward, he said DNeX was focused on growing its business and transforming the company into a technology player capable of competing in the global marketplace.

Together with Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership), DNeX is currently finalising the acquisition of SilTerra Malaysia Sdn Bhd, which manufactures semiconductor wafers that are supplied to multinational fabless and integrated device manufacturer companies.

Syed Zainal Abidin said the outlook of the semiconductor sector was 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. – Bernama