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Proposed TSMC Arizona feb will bring Taiwan suppliers

Tuesday, June 16, 2020

Taipei, June 15 (CNA) Several Taiwan-based equipment and raw material suppliers of Taiwan Semiconductor Manufacturing Co. (TSMC) intend to invest in the United States to supply TSMC as it builds and operates its US$12 billion fab in Arizona.

TSMC announced in May its intention to invest in an advanced semiconductor fab in the United States. Construction is planned to start in 2021 with production targeted to begin in 2024.

Though TSMC's investment in the project will average about US$1.33 billion per year from 2021 to 2029, only 8-9 percent of its typical annual capital expenditure, the project will likely attract some of its suppliers to set up shop in the United States.

Marketech International Corp., a Taiwan-based advanced semiconductor equipment supplier, said it plans to pursue orders from TSMC's planned fab in the U.S., where it has already formed a team.

United Integrated Services Co., a provider of electrical system integration engineering services, and Mirle Automation Corp., an automation equipment manufacturer, both said they plan to set up a company in the U.S. to support TSMC as well.

Analysts singled out three other TSMC suppliers in Taiwan that could back the company in Arizona after TSMC Chairman Mark Liu (???) said last week that raw material suppliers such as chemical producers also plan to follow the company to the U.S.

Kanto-PPC Inc., a provider of high purity electronic chemicals, Chang Chun Group, one of Taiwan's leading petrochemical conglomerates, and Shiny Chemical Industrial Co. were the three tipped by analysts to move into the U.S. market to supply TSMC's Arizona wafer fab.

Driven by the news, Shiny Chemical's shares rose 9.52 percent to end at NT$107.00 (US$3.6), a 21-month high, on the Taiwan Stock Exchange on Monday.

When asked Monday about potential Taiwanese suppliers establishing footholds in the U.S., TSMC said it would not comment on market speculation.

By: DocMemory
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