TOKYO – Mitsubishi Chemical will build a new plant in Taiwan next year to bring the source of semiconductor fabrics to life for Taiwanese producers, Nikkei learned on Monday, the latest example of Japanese corporations to meet the development call for 5G Internet services.
The resolution also reflects an effort by Japanese corporations to retain the percentage of the market that has begun to attract Chinese and South Korean rivals.
The new plant, which will be built next to Mitsubishi’s existing facilities in the city of Hsinchu, will produce a solution to remove debris and other impurities from silicon wafers and double the company’s ability to manufacture cleaning solutions.
Mitsubishi Chemical has not disclosed the amount of the investment, but is expected to exceed one billion yen ($9.4 million). The product will be provided to chip manufacturers, adding Taiwan Semiconductor Manufacturing.
TSMC manufactures chips in Taiwan, while maintaining production facilities in China.
Japan has wasted a lot of time to Taiwanese and South Koreans in semiconductor chip production, but remains a major player in the fabric industry for the production of key devices. Advanced semiconductor chips require fabrics, which can only be produced through corporations with complicated technology.
Japanese corporations are also smart to assemble other specifications for other customers. Investment in Taiwan also reflects Mitsubishi’s efforts to be dragged into the escalation of industrial disputes between the United States and China.
Other Japanese corporations moving to Taiwan come with Hitachi Chemical, which has invested 7.5 billion yen to build a circuit board fabric plant. The plant has recently started operating.
Mitsui Chemicals also invested five billion yen to build a new plant in Kaohsiung City for the manufacture of resin strips used in semiconductor production. The facility was launched in February, expanding the company’s production capacity by five percent.
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