Tuesday, December 6th 2022

ASML Said to Have Plans to Bring European Supply Chain to Taiwan

Advanced Semiconductor Materials Lithography, or as the company is more commonly known, ASML, is apparently set to build a new factory in Taiwan for the production of advanced semiconductor lithography equipment. The new factory is said to be built in the Linkou area of New Taipei City and at the same time, bring with it its European supply chain, according to Taiwan Vice Premier Shen Jong-chin.

The new factory in Linkou is still some time away, as construction will only start in July, 2023. It will apparently be ASML's largest investment in Taiwan to date, although an exact figure of the investment wasn't given, but the new factory will take up 6.68 hectares or 66,800 square metres, suggesting it'll be a rather large facility. That said, not all the land will be used for the clean room facilities, as there will also be office buildings and warehouse buildings adjacent to the factory. No details on which suppliers ASML will bring with it to Taiwan, but it's likely that the likes of Zeiss, who supplies many of the mirrors in ASML's machines, will be setting up a local presence, alongside other key ASML suppliers. ASML already has an office in Hsinchu, about an hour south of New Taipei City.
Source: CNA (in Chinese)
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15 Comments on ASML Said to Have Plans to Bring European Supply Chain to Taiwan

#1
defaultluser
its a given that you want to support the worlds largest manufacturer of finished wafers with tons of full-immersion tools - the more localized, the better!
Posted on Reply
#2
Space Lynx
Astronaut
defaultluserits a given that you want to support the worlds largest manufacturer of finished wafers with tons of full-immersion tools - the more localized, the better!
except Nvidia and Apple are moving their purchasing power to the state of Arizona... where TSMC is building 4nm factory now.
Posted on Reply
#3
TheoneandonlyMrK
It's quite surprising, I would have thought America a better second site and that the chips act might have swayed the decision.

Yes and what spacelynx said regarding new fabs, but more is always well usually better.
Posted on Reply
#4
windwhirl
Space Lynxexcept Nvidia and Apple are moving their purchasing power to the state of Arizona... where TSMC is building 4nm factory now.
It doesn't matter if they can't get rare earth materials... which are mostly located in China.
Posted on Reply
#5
mechtech
Hopefully the Day after its commissioned the neighbor to the north won’t move in and take up residence.
Posted on Reply
#6
Shihab
If construction starts mid-2023, then plans for this expansion most likely predate the CHIPS act. Besides, the planned Arizona fab will be a drop in the water compared to the capacity back home (existing and planned). Disregarding the ongoing d swinging contest, it makes more sense to expand in Taiwan than the US. The latter, I imagine, can be easily served from existing US/EU factories, while expanding where there is greater demand.
CHIPS act *may* have significant effects in the long run, but as things stand, East Asia is where the money is.

That said, I don't imagine ASML being too happy with the US right now to give them even more say over how they do business...
Posted on Reply
#7
Assimilator
TheoneandonlyMrKIt's quite surprising, I would have thought America a better second site and that the chips act might have swayed the decision.
ASML has about as much interest in allowing the USA to copy its technology as it does China.
Posted on Reply
#8
Minus Infinity
TheoneandonlyMrKIt's quite surprising, I would have thought America a better second site and that the chips act might have swayed the decision.

Yes and what spacelynx said regarding new fabs, but more is always well usually better.
Well I would have thought even India would be a lot safer or somewhere politically stable like Australia or Canada
Posted on Reply
#9
Bomby569
Space Lynxexcept Nvidia and Apple are moving their purchasing power to the state of Arizona... where TSMC is building 4nm factory now.
by the time the fab is ready, 4nm is old news. The cutting edge should remain in Taiwan
Posted on Reply
#10
watzupken
windwhirlIt doesn't matter if they can't get rare earth materials... which are mostly located in China.
That is why I am waiting to see how all these US onshoring will pan out. This is not a Command and Conquer game where you just build a factory in your base, and all the resources required in your backyard. I feel ASML's move seems to be bring themselves closer to Taiwan since TSMC is one of their biggest client. In addition, knowing the risk of war, their move also seems to be moving themselves closer to China as well.
TheoneandonlyMrKIt's quite surprising, I would have thought America a better second site and that the chips act might have swayed the decision.

Yes and what spacelynx said regarding new fabs, but more is always well usually better.
Fabs are diversifying to US/ EU, the bulk of the chips will still be produced in Asia where both TSMC Taiwan and Samsung are the biggest. Given that ASML is anyway in the West, it makes sense to diversify in Asia to be nearer to their main business partners.
Posted on Reply
#11
Assimilator
Minus InfinityWell I would have thought even India would be a lot safer or somewhere politically stable like Australia or Canada
India's attitude to intellectual property is only slightly better than PRC's. Additionally India is stuck between the rock of PRC and the hard place of Russia, which makes it an extremely poor location for any sort of production infrastructure you explicitly need to keep away from those two.
Posted on Reply
#12
Athlonite
Hmmm so much for keeping ASML's tech out of the hands of the CCP

ASML: Hey I know let's build a factory in Taiwan so we can sell our shizz to TSMC across the road
CCP: Yeah Boy everything we need in one easy military take over ASML and TSMC
Posted on Reply
#13
Minus Infinity
AssimilatorIndia's attitude to intellectual property is only slightly better than PRC's. Additionally India is stuck between the rock of PRC and the hard place of Russia, which makes it an extremely poor location for any sort of production infrastructure you explicitly need to keep away from those two.
You think India will be invaded by either or just steal AMSL IP and sell it to these two. Last I checked the US is the one getting hacked left right and centre and having it's IP stolen. No country is safe truth be told. But India has a lot of scientists and engineers at it's disposal, something US companies like to trrot out as a reason for gutting their own manufacturing and moving to China.
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