Daikin Industries Ltd. established a new manufacturing venture in Taiwan through its Malaysian unit, targeting the growing semiconductor industry’s demand for specialized cooling systems. The Japanese air-conditioning giant partnered with local firms Hotai Development Co. and LEADING Electric & Machinery Co.
The venture, Daikin Taiwan Air Conditioning Systems Co., will produce air handling units at its facility in Changhua County. The company invested 800 million yen ($5.4 million) in the project, with Daikin Malaysia holding a 51% stake.
LEADING Electric brings crucial expertise in semiconductor facility cooling systems, having operated in Taiwan’s industrial HVAC market since 1981. The partnership leverages LEADING’s local manufacturing capabilities and Daikin’s global technology.
The move comes as Taiwan’s semiconductor sector expands, driven by increased chip demand for digital applications. The island dominates the global foundry market, creating sustained demand for specialized climate control systems.
Beyond semiconductors, Daikin plans to adapt the venture’s technology for data centers, another sector requiring precise environmental controls. The company said it will focus on energy efficiency and decarbonization solutions across its product range.
