Yageo Corp (國巨) plans to transfer NT$10 billion (US$332.37 million) from abroad to boost capacity and research and development (R&D) for high-end passive components used in automobile and industrial devices.
The move demonstrates Yageo’s commitment to increasing its investments in Taiwan, as the nation plays an important role in its manufacturing of niche products and R&D efforts, the Kaohsiung-based company said yesterday.
Yageo, the world’s third-largest passive components maker, generated about half of its total production and 90 percent of its R&D at its Kaohsiung operations and R&D center, it said in a statement.
“To meet growing demand from 5G technology and automotive electronics, the company has launched a series of investments in Taiwan in the past few years,” Yageo said.
The investments would “help the company fuel growth momentum in the long run.”
Passive components used in industrial devices and automobiles contributed 31 percent and 15 percent respectively to Yageo’s total revenue of NT$31.29 billion in the first three quarters of last year.
Last month, the company signed a letter of intent with the Southern Taiwan Science Park (南部科學園區) to build a new production line in Kaohsiung’s Ciaotou District (橋頭).
Yageo plans to hire 900 workers for the Ciaotou line and recruit 200 engineers to expand its R&D team, it has said.
The company earlier last year also secured a government loan of NT$16.5 billion to fund its domestic investment and acquired land in Kaohsiung’s industrial zone to build a new factory.
To solve supply constraints, Yageo said it has boosted its equipment utilization rate for multilayer ceramic capacitor and chip resistors to about 50 percent, from as low as 25 percent in October last year.
However, labor shortages in China remain an obstacle to boosting utilization rate in the short term, the company said.
Separately, Yageo’s board of directors has approved offering 80 million new common shares in the form of global depositary receipts (GDRs), as the company aims to raise funds to replenish operating capital, repay debts and purchase raw materials, according to a regulatory filing on Tuesday.
The GDR offering is to boost the firm’s share capital to 509.05 million shares from 429.05 million, but would dilute its earnings per share by 18 percent, the company said.
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