Tokyo Keiso builds flowmeter plant in Taiwan to meet chipmaking equipment demand

20, Feb. 2019

TAIPEI, NNA – Leading Japanese flowmeter maker Tokyo Keiso Co. is building a factory in Taiwan to more than double its local output capacity to meet solid global demand for its products used for making semiconductors.

Nikkei Instrument MFG. Co., a local joint venture, is investing 200 million New Taiwan dollars ($6.5 million) in the plant in the Yilan Science Park on the northeastern coast of Taiwan, Tokyo Keiso announced last week.

The local unit plans to begin new factory operations by the end of 2020 after

moving some functions from an existing, obsolete production facility in Yilan County, Alice Chang, assistant general manager of administration at Nikkei, told NNA Tuesday.

Nikkei Instrument will increase its annual output capacity from the current 12,000 units to 26,000 units by the end of 2025, she said.

Despite lower semiconductor demand caused by sluggish smartphone sales in China and slower global growth amid the U.S.-China trade dispute, Nikkei Instrument is counting on solid longer-term demand for its high-end products such as ultrasonic flowmeters, Chang said.

Flowmeters are used for measuring and controlling air and liquid flows at various facilities including nuclear power plants as well as chemical and food factories.

Nikkei Instrument said it ships 70 percent of its total output by value to Japan, 13 percent locally in Taiwan and 17 percent to Tokyo Keiso’s other overseas units.

Tokyo Keiso also has factories in China, South Korea, Thailand and Vietnam and global sales networks, according to its website.