Flat-panel maker Innolux Corp (群創) is to invest NT$70.1 billion (US$2.29 billion) in Taiwan, the Ministry of Economic Affairs said yesterday, after approving the company’s plan to participate in a government program encouraging Taiwanese firms to return and invest at home.
Innolux’s investment is by far the largest among the 153 applications submitted to the program since the beginning of the year.
The applicants have pledged to invest NT$697.1 billion — of which NT$200 billion has been committed for this year — and create 56,294 job opportunities, the ministry said.
Facing rising production costs in China and an oversaturated flat-panel market, as well as trade difficulties due to US tariffs on Chinese-made goods, the Miaoli-based Innolux has decided to set up an automated “Zero Touch” production facility in Tainan’s Southern Taiwan Science Park (南部科學園區), the ministry said.
To cut personnel and manufacturing costs, the company over the past five years has been developing automation systems and smart manufacturing solutions.
It is also moving its television assembly line to Tainan, the ministry said, adding that the company aims to increase TV shipments to 6 million units this year, up from 1.8 million units last year.
Innolux is focusing on producing large LCD panels with high contrast and high refresh rates, as it looks to strengthen its presence on the global gaming market, the ministry said.
Other high-value-added products such as panels illuminated by mini LED backlights, curved LCD panels for automotive applications, screens with built-in fingerprint readers as well as applications such as virtual and augmented reality are to be part of the company’s focus, the ministry added.
Super Micro Computer Inc’s application to participate in another government-subsidized program promoting investment in Taiwan has also been approved, the ministry said.
The San Jose, California-based company is to invest NT$10 billion in a center devoted to research and development of advanced servers, as well as expanding its logistics center and introducing automated assembly lines, the ministry said.
Super Micro’s plan is expected to create 1,700 job opportunities, it said.
The ministry said it has also approved an application by IC trays manufacturer Sunrise Plastics Industry Co (晨州塑膠) to invest NT$1.6 billion in constructing an automated production plant in Taichung’s Waipu District (外埔), which would provide 47 job opportunities.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to
DIVERSIFICATION: Although COVID-19 would push more companies to produce in emerging markets, DBS said that it was unlikely that firms would totally leave China Geopolitical tensions and supply disruptions are expected to accelerate the migration of manufacturing out of China, as concerns about the risk of production concentrated in one country increase, S&P Global Ratings said. Although its economic expansion might be weaker than previous levels due to the accelerated relocation of manufacturing, China’s economic growth would still be stronger than that of most other economies, the ratings agency said. “While absolute growth rates will moderate, we believe China’s economic performance will continue to be a key sovereign credit support,” S&P Global Ratings credit analyst Tan Kim Eng (陳錦榮) said in a statement on Thursday. “Its growth