Taiwanese firms expand semiconductor material supply chains

Taiwanese companies are expanding their presence in the semiconductor materials supply chain through strategic partnerships and long-term contracts.

Nanya Petrochemical has partnered with Japan’s Air Water Inc. (AWI) to invest in Hongguang New Tech, a leading manufacturer of specialty gases and chemicals. Both companies will each hold a 35% stake in the firm. This collaboration aims to strengthen the local supply of high-purity electronic-grade specialty gases, such as fluorine-carbon and nitrous oxide, which are critical for semiconductor wafer manufacturing and solar energy industries. Additionally, Nanya Petrochemical has acquired a 23.4% stake in Aifeng Transportation to secure specialized logistics for chemical materials.

Separately, Epistar has secured a four-year supply contract with a United States-based client to provide continuous-wave (CW) laser products for data centers, AI, and high-performance computing applications. To support this growth and ensure material stability, Epistar has also signed long-term procurement agreements for indium phosphide substrates with suppliers in Japan and the United States. The company plans to invest up to NT$2.27 billion in new equipment to meet these rising demands.