TAIPEI (Taiwan News) — Foxconn Technology Group, the world’s largest contract electronics maker, announced Thursday (Aug. 5) it was spending NT$2.52 billion (US$90.76 million) on a Macronix International factory specialized in the production of automotive semiconductors.

The deal to purchase the plant and the equipment to manufacture 6-inch wafers will be completed by the end of 2021, CNA reported. The agreement comes as the global car industry battles a shortage of semiconductors, a problem which Taiwan and its high-tech industry have pledged to help resolve.

Foxconn Chairman Young Liu (劉揚偉) described the agreement with Macronix as a milestone in the integration of electric vehicle development with semiconductors. He added that his company is also interested in 8-inch wafers and third-generation silicon carbide chip technology.

At a joint news conference Thursday, Macronix Chairman Miin Wu (吳敏求) said his group wanted to focus on 12-inch wafer technology and 3D NAND and NOR flash memory, but he said he is still happy to see the 6-inch wafer factory contribute to Taiwan’s economy.

While Foxconn is best known for its manufacturing of iPhones and iPads for Apple Inc., it has recently expanded into the car industry with an open platform for electric vehicles.