Canon plans to invest in plant at the Southern Taiwan Science Park

January 31, 2007

Canon is planning to invest over 10 billion to manufacture exposure machines at the Southern Taiwan Science Park (STSP). The Ministry of Economic Affairs Industrial Development Bureau (IDB) said that the investment project was first proposed at the end of 2005 and is set for final approval during the first half of 2007.

Canon's investment would help raise Taiwan's self-sufficiency with regards to flat panel manufacturing equipment, said the IDB.

The optoelectronic technology for exposure machines used in TFT-LCD manufacturing is complicated and costly, with each unit worth over NTD 100,000, said the IDB.  The market for these machines is currently dominated by Canon and Nikon, the world's number one producer. The competition between the two companies in Taiwan started to heat up when local flat panel display manufacturer Chi Mei Optoelectronics asked Nikon to set up an R&D center at the STSP.

Nikon's move prompted Canon's interest in entering Taiwan's flat-panel manufacturing supply chain, and the company is considering expanding its STSP R&D center into a production base with an investment of over NTD 10 billion.

The IDB has sought out to raise Taiwan's self-sufficiency in flat-panel manufacturing equipment by inviting companies to form R&D centers. In addition to Canon, the IDB invited ASML, the semiconductor equipment producer, to set up an R&D center last year. To attract more companies, the IDB has offered a tax exemption on patent royalties and for the formation of component supply chain centers.

The flourishing development of Taiwan's flat panel industry has already attracted a number of companies, including Japanese equipment suppliers Ulvac and Daifuku. Canon's new plant at the STSP is expected to improve Taiwan's flat-panel component supply capabilities.

(Economic Daily News)

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