Taipei, May 10 (CNA) Entegris, Inc., an American supplier of advanced semiconductor materials to Taiwan Semiconductor Manufacturing Co. (TSMC), on Wednesday opened its largest global production site in Kaohsiung, southern Taiwan, despite escalating geopolitical tensions.
The U.S. semiconductor materials supplier said it expects to invest some US$500 million on the new 54,000 square meter facility, located in the Kaohsiung Science Park, which is part of the Southern Taiwan Science Park, in a bid to raise the company's production capability for advanced liquid filters, high-purity drums, and advanced deposition materials.
In addition, the new Kaohsiung site will also feature many technologies and processes designed to reduce waste, cut water and energy consumption, and increase the use of renewably sourced electricity, Entegris said.
Speaking at the opening ceremony, Entegris President and CEO Bertrand Loy said that although growing geopolitical tensions make many businesses nervous about the Taiwan market, the new investment demonstrates his company's faith in Taiwan.
"Our new Kaohsiung facility demonstrates our commitment to serving our customers in Asia and supporting the local industry ecosystem," Loy said.
"We have had a presence in Taiwan for over 30 years where we have benefited from its robust network of materials and equipment suppliers. The expansion of our footprint here helps us provide greater supply security and shorter lead times to customers across the region."
Loy said Entegris has always thought about how to help its clients meet demand, adding the new Kaohsiung plant is expected to help the company stabilize its supplies to Asian clients and shorten delivery time.
According to Loy, Taiwan accounted for about 25 percent of sales generated by the global semiconductor industry and almost 65 percent of the world's pure-play wafer foundry business, with the local semiconductor industry enjoying a 16 percent compound annual growth rate (CAGR) over the past three decades.
As a result, Loy said Entegris has become an active partner in Taiwan's semiconductor ecosystem.
Entegris said the new Kaohsiung facility has been designed to operate in line with the company's 2030 Corporate Social Responsibility sustainability goals, with more than 85 percent of water usage from the production to be recycled for daily operations.
In addition, by 2024, almost 16 percent of the total electricity consumption of the new facility will be generated by solar panels installed on site with the goal to achieve 100 percent electricity consumption generated from renewable sources by 2030.
"Through the automation and advanced manufacturing capabilities at our new Kaohsiung facility, we will deliver solutions of the highest quality to our customers with less waste," said Alvin Hsieh (謝俊安), Entegris' Taiwan country president.
"Combined with our legacy Kaohsiung facility, all four of Entegris' divisions are now in close proximity in the Kaohsiung Science Park. This will allow our teams to leverage process and product synergies and share resources and talent," he said.
According to Entegris, the new production hub is supported by the expanded Taiwan Technology Center for Research and Development in Hsinchu, the company's most active R&D center.
Hsieh said the plant is expected to begin commercial production next year, become fully operational in 2025 and generate US$500 million in sales a year.
Currently, Entegris has a workforce of nearly 720 full-time employees in Taiwan and expects to add several hundred more over the next few years as the new facility becomes fully operational, the company said.
