Wafer Works Corp (合晶科技), the world’s No. 6 silicon wafer supplier, is to invest NT$2.4 billion (US$81.41 million) to expand its 12-inch wafer capacity at an existing plant in the Longtan (龍潭) section of Hsinchu Science Park (新竹科學園區) to meet rising demand for chips used in vehicles, the Ministry of Economic Affairs said yesterday.
Wafer Works in May 2019 received ministry approval for a NT$1.16 billion capacity expansion plan at its Longtan site, allowing the wafer maker to join the government’s Invest in Taiwan initiative, the ministry said in a statement.
The automotive sector accounted for 50 percent of Wafer Works’ total revenue of NT$10 billion last year, up from 37 percent in 2020, the company said.
Photo: Hung Yu-fang, Taipei Times
Wafer Works plans to build a new smart wafer production line and add new cleanrooms to boost capacity, aiming to address surges in demand for 12-inch wafers, the statement said.
The project is expected to create 48 new jobs, it said.
As part of the new project, the company is to install solar power generation systems, and water and waste recycling facilities to reduce carbon emissions, the ministry said.
The company also operates 12-inch factories in Zhengzhou in China’s Henan Province and in Shanghai, supplying wafers to Chinese customers, the company said.
COVID-19 lockdowns in China have made it difficult for its Shanghai site to ship products, though production remains normal, it said.
Wafer Works’ revenue last month jumped 26.53 percent from a year earlier to NT$1.04 billion, primarily due to increased prices, the company said.
The company generated revenue of NT$3.05 billion last quarter, up 33 percent from NT$2.29 billion in the first quarter last year, a company filing with the Taiwan Stock Exchange showed.
The ministry said its latest data showed that the Invest in Taiwan initiative has drawn investment commitments from 1,190 companies totaling NT$1.68 trillion, with 133,554 local jobs expected to be created.
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