Asia Express
ASML Confirms New Plant in Taiwan
November 18, 2022

Netherlands-based ASML recently announced that the company will set up a new plant in New Taipei, Taiwan, with an aim to better serve some of its biggest customers in East Asia like TSMC, Samsung Electronics and SK Hynix, Commercial Daily News reported on November 17. The plant is set to begin construction next year, reportedly around July. Although the company is yet to reveal the investment amount, it is estimated that the amount will be over NT$10 billion (US$326.3 million), reportedly to be higher than NT$7.7 billion (US$251.2 million) in funding that the company obtains from the A+ Industrial Innovation R&D Program, one of Taiwan's government subsidies. ASML currently employs 4,500 people at five existing plants in Taiwan. Besides Taiwan, ASML is also building maintenance and training centers in South Korea for 240 billion Won (US$182.95 million) by 2024. Other than ASML, Japan's Tokyo Electron, Applied Materials, Lam Research, and KLA Corp, are the top five suppliers for equipment needed to produce semiconductors. With the semiconductor industry entering the inventory adjustment phase, the fabless (aka IC design) and memory industry sectors both will face major challenges such as declining market demand and excessive supply. As a result, global semiconductor shipment value is estimated to reach USD 608.6 billion in 2023, up merely 0.5% year-on-year. Taiwanese semiconductor shipment value is expected to reach NT$4.37 trillion (US$142.8 billion) and grow 1.7% year-on-year in 2023, higher than the global average, according to MIC (Market Intelligence & Consulting Institute), a government think tank and one of leading research institutes in Taiwan.