Japan's Mitsubishi Chemical to expand in Taiwan as TSMC maintains strong growth momentum

Mitsubishi's expansion looks to catch up to demand from Taiwanese companies on 5G optimism

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(Mitsubishi Chemical website photo)

(Mitsubishi Chemical website photo)

TAIPEI (Taiwan News) — Thanks to strong growth momentum in Taiwan's semiconductor foundry sector, Japan's largest chemical corporation is said to be set to build a new plant in the country to boost the supply of wafer cleaning solutions.

The new plant, which is said to be planned for Taiwan's high-tech hub Hsinchu, will boost capacity by 50 percent to catch up to demand from Taiwanese companies on 5G optimism, including Taiwan Semiconductor Manufacturing Company (TSMC), its big buyer in Taiwan, media reported.

The Japanese-language Nikkei reported on Monday (Aug. 17) that Mitsubishi Chemical's new facility in Hsinchu is going into production in 2021, and it will be manufacturing high-performance specialty chemical solutions needed for removing contamination during wafer processing.

Previously, Mitsubishi Chemical invested 5 billion yen (about US$47 million) to build a plant in Kaohsiung to produce a tape used in semiconductor manufacturing. The plant may start operations in January 2021.

This year, Taiwanese chip makers have seen increased orders on strong demand against the backdrop of the US-China trade war, 5G development, and pandemic-induced demand for information & communications technology (ICT) products. Earlier in May, the new factory of another Japanese chemical giant, Hitachi Chemical, began its manufacture of advanced functional laminate materials for printed wiring boards.