Sembcorp Expenses NT$28.26 Billion to Expand 12-inch Plant in Mailiao, Yunlin

The board of directors of Taiwan Sembcorp, a major silicon wafer manufacturer, passed a resolution yesterday (10) that it will spend NT$28.26 billion to expand a 12-inch silicon wafer fab in Mailiao Formosa Plastics Industrial Park, Yunlin, with the goal of mass production in 2024.

Tai Sembcorp said that in response to the COVID-19 epidemic, accelerated digital transformation has boosted sales of laptops, tablets, and servers. In addition, the penetration rate of the 5G smartphone market has rapidly increased, and automotive electronics such as electric vehicles and advanced driver assistance systems have become The mainstream of new models has driven the capacity utilization rate of wafer foundries and memory factories to be fully loaded, and is expected to push up the demand for silicon wafers. Therefore, it is planned to invest in expanding factories.

Taiwan Sembcorp pointed out that the sources of funds include self-owned funds, bank loans, etc., and will be invested according to the progress of the expansion. We will actively communicate with the local government and hope to apply for the project and start construction as soon as next year.

Sembcorp’s parent company, Japan Shengco, recently revealed that the existing plant space and production capacity in Taiwan, China have reached their limit. In addition to building a new silicon wafer fab in Japan, in order to meet the strong demand from customers, and to improve in China The supply responsibility of the Taiwan market is also considering expanding the production capacity in Taiwan, China.

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