Foxconn in talks to buy stake in Malaysia’s DNeX -report

KUALA LUMPUR (Reuters) – Taiwanese firm Foxconn Technology Co Ltd is in talks to acquire a stake in Malaysian technology firm Dagang NeXchange Bhd (DNeX) after losing a bid for a semiconductor maker DNeX now owns, Bloomberg reported on Thursday, citing sources.

It said Foxconn, the main assembler of Apple’s iPhones, was seeking a minority stake to help the group expand its chipmaker unit SilTerra Malaysia Sdn Bhd.

Asked about the report, DNeX told Reuters it is always open to discussion with strategic partners and investors that can bring value to the group but cannot comment on any specific discussion at shareholder level, if any is taking place.

Foxconn said following company policy, it does not comment on market speculation or rumors.

In February, DNeX and Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center won a bid to acquire SilTerra for 273 million ringgit ($65.98 million) from sovereign wealth fund Khazanah Nasional.

DNeX will own 60% in SilTerra while its Chinese partner takes the remainder.

Foxconn lost the bid for the semiconductor maker earlier this year but its chairman told reporters the company was still looking for semiconductor fab purchase opportunities in Southeast Asia.

While Apple is Foxconn’s largest customer, the electronics manufacturer has been looking at other areas for growth, including in electric vehicles (EVs).

Last week, it signed a non-binding memorandum of understanding with carmaker Stellantis to form a joint venture to supply in-car and connected-car technologies across the auto industry.

Shares in DNeX, a trade facilitation and oil & gas service provider, rose as much as 13.6% on Thursday.

($1 = 4.1375 ringgit)

(Reporting by Liz Lee; additional reporting by Yimou Lee; editing by Philippa Fletcher)