TAIPEI (Taiwan News) — Cheng Mei Materials Technology Chair Sung Yen-i (宋妍儀) said the company is undergoing a transformation and will expand into the production of semiconductor packaging materials, with mass production expected to begin in 2028.
Cheng Mei Materials Technology is a major global maker of polarizers, key components used in LCD TVs, smartphones, automotive displays, and wearable devices. The company plans to focus more on making polarizers for automotive displays and wearable devices to drive sales growth, per CNA.
The company said that it generated NT$8.64 billion (US$275 million) in revenue last year, down 3.18% from 2024. It reported a net loss after tax of NT$1.46 billion.
The firm attributed the downturn to the appreciation of the Taiwan dollar, rising material costs, and a slowdown in the display sector. It has halted production of some lower-margin products to help reduce losses.
Sung said the company will invest more than NT$2.2 billion to develop film materials for semiconductor packaging. She added the company’s tapes used in packaging have begun shipments this year.
Yang Chao-chih (楊朝智), the company’s chief financial officer, said the advanced semiconductor packaging market could grow to NT$2.5 trillion by 2030. He noted that Taiwan holds a 55% share of the global chip assembly and testing market, but still depends on imports for 90% of its high-end materials.
To seize business opportunities, the company will use its experience in adhesives and coatings to produce semiconductor packaging materials. The company will also buy more production equipment, adjust existing production lines, and build semiconductor-grade cleanrooms.
As demand for AI, high-performance computing, and high-speed communications grows, advanced packaging technology is key to improving chip performance, power efficiency, and reducing chip size, Yang added.
In addition to investing in semiconductor packaging materials, the company said it will spend NT$1.87 billion on materials for the lithography process. This process uses ultraviolet light and special optics to print circuit patterns onto wafers, a key step in making semiconductors.
