Kanto Chemical boosts production capabilities in Taiwan

14, Jun. 2019

TAIPEI, June 13 Kyodo - Japanese electronic chemicals and materials maker Kanto Chemical Co. is expanding production facilities in Taiwan to meet growing demand from its major local clients.

Its Taiwanese subsidiary, Kanto-PPC Inc. said earlier this week it has invested NT$2 billion ($63.7 million) to expand its plant in the central county of Yunlin, increasing its annual output of products to be used in the making of semiconductors from 120,000 tons to 200,000 tons.

Kanto-PPC said in a statement its factory has been running at full capacity as part of the supply chain of Taiwan Semiconductor Manufacturing Co., the world's top contract chipmaker.

It also said it has built a logistics center with an automated warehouse and two hazardous chemical storage areas.

Kanto-PPC has so far pumped nearly NT$4 billion into its Yunlin operation. Kanto-PPC President Jerry Lu said in a statement that his company's total investment will eventually top NT$5 billion as car electronics, autonomous and electric vehicles and artificial intelligence technology drives semiconductor demand.

Kanto Chemical's move comes at a time when Taiwanese chipmakers are boosting investment in next-generation chip technologies. Taiwan Semiconductor has completed the construction of a 5-nanometer chip plant and plans to build a 3-nanometer chip plant.

Kanto-PPC's Yunlin plant also provides products to other major chipmakers such as Winbond Electronics Corp. (NNA/Kyodo)