The Ministry of Economic Affairs yesterday approved Yageo Corp’s (國巨) application to increase its investment in the nation by NT$14.7 billion (US$487.53 million), as part of a program to encourage Taiwanese companies to invest back home.
The company’s decision to almost double the investment to a total of NT$31.2 billion, from the NT$16.5 billion announced last year, is aimed at diversifying its operational risks following disruptions in Chinese production during the COVID-19 outbreak, the ministry said.
As COVID-19 broke out during the Lunar New Year holiday, Yageo, the world’s third-largest manufacturer of multilayer ceramic capacitors, saw utilization rates at its facilities in China’s Suzhou and Dongguan drop from 50 percent to 30 percent, as local authorities imposed strict containment measures.
The company said that it would relocate part of its Chinese production back to Taiwan, as it looks to satisfy clients’ orders and to capture market demand from 5G-related applications and automotive electronics, a company statement said.
Yageo said it would expand production capacity at its plants in Kaohsiung’s Dashe (大社) and Nanzih (楠梓) districts.
Aside from setting up a research and development center, the company said it has started construction of a new plant at the Dafa Industrial Park (大發工業區), which would create about 1,900 job opportunities.
The ministry yesterday also approved an application from Taiwan Lamination Industries Inc (台灣積層工業) as part of another government program that also seeks to boost investments.
The company, which specializes in flexible packaging and multicompound materials, last year applied to invest NT$500 million to set up a new manufacturing facility in Taoyuan’s Jhongli Industrial Park (中壢工業區) to improve production efficiency, it said.
Taiwan Lamination now plans to invest nearly NT$1 billion to install solar panels and industrial clean rooms at its Jhongli plant to create a more environmentally friendly manufacturing process, it said, adding that it would generate more than 20 job opportunities.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
AI-FUELED DEMAND: The company has been benefiting from the skyrocketing prices for DRAM chips amid the AI frenzy, especially its core product — DDR4 DRAM chips DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday reported that its revenue for the first quarter surged 582.91 percent to NT$49.09 billion (US$1.54 billion) from NT$7.19 billion a year earlier, as the supply crunch caused chip price spikes. Last quarter’s figure is the highest on record. On a quarterly basis, revenue jumped 63.14 percent from NT$30.09 billion, the company said. In January, Nanya Technology expected global DRAM supply scarcity to continue through the first half of 2028, thanks to strong demand for artificial intelligence (AI) applications. Market researcher TrendForce Corp (集邦科技) forecast prices of standard DRAM chips would rise between 58 percent and 63
HIGHER PRICES: Given rising energy costs, CPC raised natural gas prices for generators by 41.58%, which Taipower said would raise its power generation costs by NT$10 billion State-run CPC Corp, Taiwan (CPC, 台灣中油) has activated its fourth naphtha cracker to boost ethylene supply, aiming to ease concerns over plastic material shortages amid tensions in the Middle East, the Ministry of Economic Affairs said yesterday. The move is expected to add 19,000 tonnes of supply this month and 30,000 tonnes next month, Deputy Minister of Economic Affairs Ho Chin-tsang (何晉滄) said at a meeting of the legislature’s Economics Committee in Taipei. CPC on Tuesday held talks with major polyethylene producers, including Formosa Plastics Corp (台塑), Asia Polymer Corp (亞聚) and USI Corp (台聚), and pledged to supply ethylene feedstock
RSS