Main US chipmaking materials provider Entegris says it’s dedicated to investing in Taiwan because it opens the corporate’s “most superior” manufacturing centre on the island regardless of geopolitical tensions surrounding Asia’s prime chip economic system.
“Our funding is only a signal of the conviction we’ve in the way forward for the semiconductor trade in Taiwan,” Bertrand Loy, president and chief government of Entegris, informed Nikkei Asia forward of the grand opening of its $500mn facility in Kaohsiung, in southern Taiwan.
“That is the most important funding ever within the historical past of this firm and the vital information is that that is going to be our most superior manufacturing centre . . . If you wish to get to 2-nanometre, 1-nanometre [chips] or under, one of the best filters might be manufactured in Taiwan.”
The smaller the nanometre measurement, the extra superior and highly effective the semiconductors. At the moment, the world’s prime chipmakers — Taiwan Semiconductor Manufacturing Co, Samsung Electronics and Intel — are racing to supply cutting-edge chips of three nanometres and under.
Entegris is the world’s prime provider of the superior filters and containers wanted to make sure the purity of chemical compounds and liquids utilized in making chips and shows. Such supplies have gotten more and more vital as semiconductor manufacturing grows extra subtle, with much less margin for defects.
Counting TSMC and most different chip producers around the globe as prospects, Entegris would make the corporate’s most superior filters, containers and dielectric supplies in Taiwan, based on Loy. The chief government mentioned the corporate would additionally broaden its group in Taiwan from about 700 workers to greater than 1,000. The brand new facility is coming into check manufacturing and qualification will happen via the second half of 2023. Mass manufacturing is scheduled to start in 2024.
This text is from Nikkei Asia, a worldwide publication with a uniquely Asian perspective on politics, the economic system, enterprise and worldwide affairs. Our personal correspondents and outdoors commentators from around the globe share their views on Asia, whereas our Asia300 part offers in-depth protection of 300 of the largest and fastest-growing listed firms from 11 economies outdoors Japan.
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Loy mentioned it made extra sense to construct chipmaking materials manufacturing websites near international chip hubs like Taiwan, South Korea, the US and Japan which have dedicated to growing cutting-edge semiconductor manufacturing applied sciences, reasonably than in areas specializing in less-advanced nodes, akin to Europe and India.
“In case you do not need that dedication to modern [chip] course of, then your [chip plants] more than likely may be happy with older era merchandise,” Loy mentioned. “And it means that you may be equipped from just about anyplace on the planet.”
He mentioned that was the explanation the corporate had no plans to supply chip supplies in both Europe or India regardless of these economies gearing up their very own ranges of chip manufacturing.
Loy additionally mentioned the corporate had taken into consideration the geopolitical stress between China and Taiwan, and that it deliberate so as to add some further redundant capability at its Colorado Springs web site within the US.
“Enterprise continuity plans have at all times been an vital consideration, and that [should be in place] for all of our strategic merchandise,” the chief government mentioned, including that the corporate hoped to make all its vital merchandise in at the very least two places to extend provide chain resilience.
The semiconductor trade had realized a variety of classes from the unprecedented provide chain constraints over the previous few years, Loy mentioned.
China views Taiwan as part of its territory and doesn’t rule out taking management of the democratically dominated island by pressure. Since former US Home Speaker Nancy Pelosi visited Taipei final summer time, Beijing has carried out a number of dwell navy drills round Taiwan and escalated stress.
Concerning the present chip trade downturn, Loy mentioned he was not “overly involved” regardless of expectations that the trade’s outlook would stay unclear till later this 12 months and even into 2024.
“There’s fairly good proof that we are going to be hitting backside [of the downturn] within the [second] quarter. However the fee and the tempo of restoration stays fairly unsure,” he mentioned. In earlier downturns, “you don’t have any visibility after which instantly, it begins ramping up very quick. So, I’m not overly involved in regards to the lack of visibility as a result of this isn’t new in any respect.”
A model of this text was first printed by Nikkei Asia on Could 10 2023. ©2023 Nikkei Inc. All rights reserved.
