Minister of Economic Affairs Lin Hsin-yi (林信義) welcomed yesterday the establishment of a regional semiconductor manufacturing equipment parts and components distribution center by Applied Materials Inc in northern Taiwan.
Lin said at the opening of the distribution center that the move helps the development of the nation's semiconductor industry and also demonstrates the company's confidence in Taiwan's investment environment.
Applied Materials, a leading supplier of semiconductor manufacturing equipment and services with its headquarters in Santa Clara, California, opened the center in Taoyuan County near Chiang Kai-shek International Airport in cooperation with delivery giant UPS Worldwide Logistics.
The center is part of Applied Materials' global parts and components management service network.
The company set up its first distribution center in Kentucky in October and will set up a third one next March in Frankfurt, to manage parts and components distribution in Europe.
Applied Materials Chairman and Chief Executive Officer James Morgan said at the inauguration ceremony that Taiwan's semiconductor wafer foundry industry still retains an advantage in high-end manufacturing processes, even as low-end products are facing oversupply.
Morgan said that Taiwan can focus on developing high-end semiconductor production while moving low-end production processes to China to cut costs.
A financial adviser to US President George W. Bush, Morgan said that the semiconductor industry has weathered its most difficult period over the past six months and that indicators show a gradual recovery.
Therefore, he added, necessary investments cannot be passed up lest a company might miss out on the rebound.
Applied Materials' earnings in Asia comprise over 60 percent of its worldwide income, with revenues in Taiwan for the 12-month period to November reaching US$1.1 billion, or 15.1 percent of the company's total revenues.
According to Lin, demand for semiconductor manufacturing equipment in Taiwan reached US$9 billion last year, or 20 percent of the global market, making the nation second only to the US.
Taiwan's ranking dropped to third this year due to a slackening off of semiconductor equipment demand.
Applied Materials set up a local branch in northern Taiwan's Hsinchu Science-based Industrial Park (
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