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.
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