Tokyo Electron Ltd. launched a new operations center in Tainan, Taiwan, strengthening its partnership with Taiwan Semiconductor Manufacturing Co. and expanding its footprint in the global AI chip manufacturing hub.
The facility, located five minutes from TSMC’s advanced chip plants, will focus on equipment maintenance, research, and development. The proximity allows Tokyo Electron to significantly reduce repair times for critical chipmaking tools, with vacuum transfer module repairs now taking one to two months compared to previous six to seven-month timeframes when equipment needed to be sent to Japan.
The expansion aligns with Taiwan Semiconductor Industry Association’s push for equipment makers to increase local operations. TSMC’s Senior Vice President Cliff Hou emphasized the initiative’s focus on reducing carbon emissions and enhancing supply chain stability.
The investment comes as part of Tokyo Electron’s broader 1.5 trillion yen ($10 billion) five-year expansion plan announced in November. The company, which currently employs over 1,800 people in Taiwan, plans to add 10,000 workers globally.
The Japanese firm is also developing a technology center in Hsinchu, targeting Taiwan’s growing semiconductor market as the company projects record earnings for fiscal 2025.
