American semiconductor material manufacturer Interge reportedly plans to more than double its investment in Taiwan, China, and establish the largest manufacturing base to produce materials used in the 3nm and 2nm chip manufacturing process. Critics believe that this is crucial to Taiwan, which is struggling to ensure its position in the semiconductor industry chain.

According to Nikkei Asia News, Bertrand Loy, President and CEO of Interge and Chairman of the SEMI Board of Directors, stated in an interview on Wednesday (8th) that the company will invest US$500 million in Taiwan, China in the next three years, which is higher than the previous plan. $200 million.

At the same time, the company is building a production plant in the southern city of Kaohsiung, Taiwan, to supply TSMC and other companies. It is expected to start operations at the end of next year and mass production will begin in the middle of 2023. The plant will produce filtering and deposition materials used in the production of 3nm and 2nm chips, which is the most advanced chip manufacturing technology in the industry.

Interge is the world's top high-end filter supplier, these filters are essential to ensure the purity of the chemicals and liquids used in the manufacture of chips and displays. As semiconductor manufacturing becomes more and more complex and the tolerance for impurities and defects becomes lower, this material becomes more and more important.

The company's new factory in Taiwan will first provide products for its largest customer, TSMC, and then provide support for other chip manufacturers. Leading global chip suppliers such as Intel, Samsung, Kioxia, Micron and SK Hynix are all customers of Intel. Loy said the company will also spend US$11 million to expand its technology center in Taiwan.

"Now everyone actually realizes that a shorter supply chain and closer to customers may be a better (operating) model." Loy said, "We intend to shorten the supply chain and bring more local manufacturing closer Our customer base in Taiwan, and our customer base in (South Korea), Japan and the United States."

However, Loy emphasized that the company's main production base is still in the United States, accounting for about 60% of the company's production capacity, but hopes to create a more balanced production rhythm. "If you fast forward to 2024 or 2025, I think the ratio of output in the United States to the output of other places may be 50% and 50%."

Large chip manufacturers are making their most aggressive expansion in history to help alleviate global chip supply shortages. Although some analysts and industry insiders are concerned about the possible oversupply once these expansion plans are realized, Loy said his company is not worried about short-term market volatility.

"Growth has never been linear," he said. "I think the semiconductor industry will grow at twice the GDP in the next 10 years, and the market will reach $1 trillion by 2030. We need to be prepared for this. This means that we need to increase production capacity." "We are not for short-term management, but for long-term planning."

Speaking of the United States' initiatives to introduce incentives for the local semiconductor industry, including the $52 billion CHIPs Act, Loy believes that chip manufacturing materials and equipment suppliers, and foreign companies investing in the United States should also be eligible for this support.

"This is a very global industry that relies on a very broad global ecosystem. I think opportunities should be given to everyone and should not be discriminatory." "Looking back, we benefited from South Korea's incentives when investing in South Korea. ...I understand that from a political point of view, this may be a difficult decision, but from an economic point of view, I think it is a correct decision."