Major U.S. Chip Supplier to Invest $200M In Taiwan

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Taiwan has been a major hub for computer chip manufacturing for many American-based companies. Now, a major chip supplier is helping to keep this dominance running with a massive new investment.

Entegris announced on Monday their plans to construct a new $200 million plant in Taiwan. Company president and CEO Bertrand Loy said that construction was slated to begin early next year and would be hopefully completed by the end of 2021. Loy also stated that this was the “largest investment” in the history of the company, which would help Taiwan to become the main manufacturer for Entegris for the “next four to five years.”

Even before this new investment, Entegris has considered the Taiwan Semiconductor Manufacturing Co. as their top customer. The new factory will be constructed in the southern city of Kaohsiung and will produce materials for some of the world’s most advanced semiconductors, like 5-nanometer and 3-nanometer chips. Entegris will supply the Taiwan Semiconductor Manufacturing Co. with these new chips first but will supply chipmakers worldwide should demand warrant it.

Entegris has been the top supplier of high-end filters for years, which are key to ensure the purity of chemicals and liquids used in making chips and displays. As semiconductors become more complex, these filters have grown in importance. The company supplies chips to major companies like Samsung, Intel, and Kioxia.

For Taiwan, the investment is quite significant, as they have the world’s second-highest chip economy after the U.S. The country hopes to sway more chip equipment and material manufacturers to set up shop on the island, as part of their efforts to defend their current position in the industry from China, which has been seriously ramping up their chip production capabilities in recent times.