TAIPEI (Taiwan News) — Taichung-based Hon Precision will invest NT$850 million (US$26.9 million) to expand its factory capacity as orders for AI chip testing equipment strain its existing space.
The semiconductor testing equipment maker received approval to add one floor to its existing plant, raising its total floor area by 2,283.53 square meters and creating an estimated 365 jobs, per Liberty Times.
Hon Precision makes integrated circuit test handlers and automated testing equipment, including temperature control systems used in high-end chip testing. Its temperature control capabilities have helped place its equipment in AI chip testing supply chains for leading US companies, according to the report.
The company also raised its 2026 capacity growth outlook this year from 30% to 40%. Its FT test handlers are one of the key pieces of equipment used in that market.
The expansion was approved through Taichung’s industrial zone vertical development program, which gives manufacturers more room to grow on existing sites. Hon Precision received a 20% floor-area bonus, including 5% for energy management and 15% for new investment, per the report.
The company also plans to install 1,353.18 square meters of rooftop solar panels, covering over two-thirds of the roof. It also intends to obtain ISO 50001 energy management certification.
City officials said the case was reviewed for fire safety, environmental, and traffic impacts before approval. The company has pledged to improve parking and traffic issues as well as waste management.
The investment comes as Taichung works to build out its semiconductor supply chain around TSMC’s planned NT$1.5 trillion investment in four 1.4-nanometer fabs, per the report.
