Foxsemicon to enjoy revenue growth in 2020

Semiconductor equipment maker Foxsemicon Integrated Technology, an affiliate of the Foxconn Group, is expected to post on-year revenue growth in 2020, according to industry sources.

Brisk demand from foundries and memory chip vendors engaged in process technology transitions will be buoying Foxsemicon's sales performance this year, said the sources.

Stable growth in orders from Applied Materials will also boost Foxsemicon's revenues during the second quarter, which is forecast to register a more than 15% sequential increase, the sources indicated. Foxsemicon is reportedly a contract manufacturing partner of Applied Materials, whose major clients include Intel, TSMC and Samsung Electronics.

Foxsemicon declined to comment on specific customers and orders, but said it has clear order visibility through July despite still having uncertainty about orders for August-October.

Foxsemicon also disclosed plans to expand its factory site in Chunan, Hsinchu (northern Taiwan) where it is headquartered, with the construction of the new facility to kick off in the third quarter and slated for completion by the end of 2021.

Foxsemicon is also expanding capacity at its plant located in China's Nanjing Pukou Economic Development Zone, where TSMC operates a 12-inch wafer fab for the fabrication of 16nm and more advanced node chips. When commenting on whether it will follow in the footsteps of TSMC to set up operations in the US, Foxsemicon said it has to carefully evaluate the feasibility.