But Foxconn's foray into semiconductors so far has been rocky. Last year, it agreed with Indian metals-to-oil conglomerate Vedanta to set up a semiconductor and display production plant in India as part of a $19.5 billion joint venture. But Foxconn pulled out of that venture earlier this year, .
Kneron's chips are manufactured by TSMC, the world's largest contract chip manufacturer.
However, TSMC and semiconductors more broadly have been caught in the geopolitical battle between the U.S. and China. There are continued fears that China could invade Taiwan, where TSMC is headquartered, which could cut the world off from supplies of the company's semiconductors.
To mitigate the risk, Liu said that from next year, Kneron will have a more distributed production footprint in the U.S. and Europe "to de-risk."
