A weekly snapshot of Taiwan business news stories brought to you by CommonWealth and AmCham Taiwan’s TOPICS
Entegris Doubles Investment in New Kaohsiung Plant
American semiconductor materials company Entegris last week announced plans to double investment in its new Kaohsiung plant. The investment will total around US$500 million over the next three years. Sales of the plant’s products will begin in the first half of 2023.
Entegris forecasts that after this expansion, Taiwan will account for 20% of its global production capacity, and will become the company’s largest manufacturing base. Moreover, Entegris plans to expand its local workforce in Taiwan, aiming to recruit an additional 100 local employees with engineering and manufacturing backgrounds in 2022.
Entegris is a giant in the area of semiconductor materials and specialty chemicals. Its most important product is the Extreme Ultraviolet Light (EUV) recticle pod, which is necessary for chipmaking. Alongside Taiwan-based Gudeng Precision Industry Co., Entegris is currently one of only two suppliers of EUV recticle pods in the world. The company also produces high-purity chemicals, photoresist, and other products. Its clients in Taiwan include Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics Corporation (UMC), Micron Technology’s Taiwan plant, and others.
Hon Hai Employees to be Evaluated on ESG
Hon Hai Precision Industry Co. Chairman Young Liu recently stated that the company has added Environmental, Social, Governance (ESG) items to each employee’s key performance indicators (KPI). The new policy will serve to integrate ESG goals into the daily activities of Hon Hai employees.
Liu announced the change during a speech at the Cathay Sustainable Finance and Climate Change Summit on December 7. He noted that companies must not only pursue profit, but also a better society and environment – the driving spirit behind ESG. Hon Hai’s sustainable business development formula, according to Liu, is EPS (earnings per share) + ESG. In addition to making money, he said, Hon Hai will pay close attention to the environment, society, and corporate governance.
TSEC Reports Robust Demand Through H1 2022
Speaking at the Taiwan Smart Storage Exhibition on December 8, Henry Chiang, spokesperson for the Taiwan-based photovoltaic (PV) cell and module manufacturer TSEC Corp, noted that the company has a backlog of orders that extends through the first half of next year. Given this surge in demand, TSEC is set to turn a profit this year after suffering heavy losses in the first three quarters of 2021.
Looking to the coming year, Chiang states that orders are lined up until Q3. To help meet the Taiwan government’s target of 3MW of installed photovoltaic capacity, TSEC is also preparing for a third phase of expansion. The company expects that next year, batteries and module production capacity will reach 1.5GW, a 50% increase from 2021.
Additionally, TSEC recently raised NT$615 million (US$22 million) in funds through a private placement of shares, which was subscribed to by the National Development Fund. Through the placement, it seeks to create an alliance of upstream PV module materials suppliers and boost its presence in the international market.