Tokyo Electron Ltd, Asia’s biggest semiconductor equipment supplier, yesterday launched a NT$2 billion (US$61.5 million) operations center in Tainan as it aims to expand capacity and meet growing demand.
Its new Taiwan Operations Center is expected to help customers release their products faster, boost production efficiency and shorten equipment repair time in a cost-effective way, the company said.
The center is about a five-minute drive from the factories of its major customers such as Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) advanced 3-nanometer and 2-nanometer fabs.
Photo: Grace Hung, Taipei Times
The operations center would have about 1,000 employees when it is fully utilized, the company said.
TSMC vice president T.S. Chang (張宗生), who oversees advanced technology and mask engineering, attended the center’s opening ceremony, along with United Microelectronics Co (聯電) and Winbond Electronics Corp (華邦電) representatives.
“With the opening of this operations center, we aim to reach two goals: First, we aim to expand our scale to cope with the ongoing growth of the Taiwanese market. Second, we hope to shorten the product repairing time cycle and to broaden the supply chain,” Tokyo Electron Taiwan Ltd chairman Hikaru Ito said at the ceremony.
The six-floor facility is comprised of a repair center and a testing lab to provide customers with one-stop services, as Taiwan plays a key role in the global artificial intelligence (AI) industry, Tokyo Electron Taiwan president Roger Chang (張天豪) said.
For the first time, the company can help fix vacuum transpiration robotic arms used in semiconductor equipment for customers in Taiwan, it said.
In the past, it took about seven months to complete the whole repair process in Japan, compared with one to two months now, it said.
The new repair center would also help customers fix damaged ovens used in lithography equipment, it said.
The company is mulling to build a more resilient supply chain in Taiwan through sourcing key parts locally, it said, adding that it has a shortlist of potential suppliers.
Taiwan has become the fourth-biggest market for the company, accounting for 13.3 percent of its total revenue in the second quarter, a spike from 9.3 percent a year earlier, a company financial statement showed.
The new operations center demonstrates the close partnership between Taiwan and Japan in the semiconductor field, Minister of Economic Affairs J.W. Kuo (郭智輝) said at the opening ceremony.
Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights. The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights. Airlines are not waiting for a lack of supplies to react. “Travel alert: Airlines are cutting thousands of flights right now,” Travel Therapy host Karen Schaler said in an Instagram reel this past weekend.
MANAGING RISKS: Taiwan has secured LNG sufficient to cover 95 percent of electricity demand for next month, UBS said, describing the government’s approach as proactive UBS Group AG has raised its forecast for Taiwan’s economic growth this year to 8 percent, up from 6.9 percent previously, and said expansion could reach as high as 8.6 percent if external energy shocks are avoided. The upgrade reflects a stronger-than-expected first-quarter performance and sustained momentum in artificial intelligence (AI)-driven exports, which UBS said are providing a firm foundation for growth despite geopolitical and energy risks. Taiwan’s GDP expanded 13.69 percent year-on-year in the first quarter, the fastest growth since the second quarter of 1987, the Directorate-General of Budget, Accounting and Statistics (DGBAS) reported on Thursday. On a seasonally
The Fair Trade Commission’s (FTC) ongoing review of Grab Holdings Ltd’s US$600 million acquisition of Foodpanda Taiwan’s operations, announced on March 23, has taken on fresh urgency as industry experts warn that the transaction could embed significant Chinese cybersecurity vulnerabilities into Taiwan’s digital infrastructure through Grab’s deep ties to autonomous-driving firm WeRide (文遠知行). Less than 16 months after the FTC blocked Uber Eats’ direct attempt to acquire Foodpanda Taiwan — citing potential combined market shares of 80 to 90 percent — the emergence of Grab as the buyer has prompted questions about whether the same competitive harm is simply being rerouted
The list of Asian stocks that benefit from business partnership with Nvidia Corp is getting longer, as the region further integrates into the artificial intelligence (AI) chip giant’s business ecosystem. Just in the past week, South Korea’s LG Electronics Inc, Taiwan’s Nanya Technology Corp (南亞科技), as well as China’s Huizhou Desay SV Automotive Co (德賽西威) and Pateo Connect Technology Shanghai Corp (博泰車聯) have become the latest to rally on news of tie-ups, supply-chain participation or product collaboration with the US chip designer. Asian suppliers account for about 90 percent of Nvidia’s production costs, up from about 65 percent last year, data compiled