Press Center
2024-03-04
Events
New Joint Venture Plant between Chang Wah Electromaterials and Sumitomo Bakelite Officially Launched to Fulfill Epoxy Molding Compound Demand in Taiwan
Issued by: Chang Wah Electromaterials Inc.
Issued on: March 4, 2024
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The new plant of Sumitomo Bakelite (Taiwan) Co., Ltd., a joint venture between Chang Wah Electromaterials Inc. (CWE) and Sumitomo Bakelite Co., Ltd., officially commenced operations on March 4, 2024, at the Dafa Industrial Park in Kaohsiung City. The facility is expected to add 600 tons of Epoxy Molding Compound (EMC) production capacity per month. This marks Sumitomo Bakelite’s first plant expansion in Taiwan since it began operations here in 1998 and represents a significant milestone for both CWE and Sumitomo Bakelite.
Kaohsiung City Mayor Chi-Mai Chen, Director-General of the Economic Development Bureau Tai-Hsiang Liao, CWE Group Chairman Canon Huang, CWE Chairman and President of Chang Wah Technology Co., Ltd. (CWTC) Chuen-Sing Hung, President of Tian Zheng International Precision Machinery Co., Ltd. and Chairman of JMC Electronics Co., Ltd. Wen-Tsai Wan, and President of Chang Chun Plastics Co., Ltd. Hou-Fu Chen, along with other distinguished guests, were all present to celebrate the grand opening of the new plant.
In 1998, Sumitomo Bakelite, holding the largest share of the global EMC market, responded to an enthusiastic invitation from Canon Huang, then President of CWE. Together with their long-term Taiwanese partner, Chang Chun Plastics Co., Ltd., they established the joint venture Sumitomo Bakelite Taiwan. This marked Sumitomo Bakelite Group’s third overseas production base, following its facilities in Singapore and Suzhou. It was also Taiwan’s first semiconductor packaging EMC production plant, providing immediate supply and mitigating risks for Taiwan’s semiconductor backend encapsulation industry.
In response to the surge in demand within Taiwan’s semiconductor industry after the 2020 COVID-19 pandemic, Canon Huang once again pushed for an expansion of production lines in Taiwan at Sumitomo Bakelite’s headquarters in Japan. After a thorough evaluation, the Japanese headquarters decided to increase production in Taiwan, following its previous expansion of production lines at the Suzhou plant.
Canon Huang stated that EMC is crucial for traditional wire bonding packaging, advanced flip-chip packaging, and emerging applications, including AI chip packaging, powertrains, automotive motors, and advanced modules for autonomous vehicles. The mass production at Sumitomo Bakelite Taiwan’s new plant will help meet the growing demand from local manufacturers, boosting the domestic supply of key packaging materials. This development is expected to positively impact Taiwan’s semiconductor, automotive electrification, and autonomous vehicle sectors.
Kaohsiung City Mayor Chi-Mai Chen, in his speech, emphasized that opportunities favor those who are prepared. Given the growing number of semiconductor advanced process companies investing in Kaohsiung, the city government is committed to actively engaging with the industry’s needs and offering the best possible support. He reassured Sumitomo Bakelite Taiwan, stating that the city government will treat the company as its own and provide exceptional services. Mayor Chen also expressed his gratitude to Sumitomo Bakelite Taiwan for its confidence in Kaohsiung and for choosing to invest in the city.
Sumitomo Bakelite President Kazuhiko Fujiwara stated that Sumitomo Bakelite Taiwan began production and operations in Kaohsiung in the year following its establishment. As the only large-scale producer of packaging and testing materials in Taiwan, it also holds the largest market share globally in the semiconductor packaging materials sector. With 25 years of commitment to Kaohsiung, the company’s new plant will enhance its supply capacity, further strengthening local production and consumption in Taiwan’s semiconductor market. This expansion will also play a pivotal role in shaping Kaohsiung’s semiconductor packaging and testing cluster, solidifying the city’s position as a global leader in the industry.
▲Distinguished guests attended the opening ceremony of the new joint venture plant between CWE and Sumitomo Bakelite, including Sumitomo Bakelite President Kazuhiko Fujiwara (7th from left), Sumitomo Bakelite Taiwan President Mitsuaki Naramura (8th from left), Kaohsiung City Mayor Chi-Mai Chen (8th from right), Economic Development Bureau Director-General Tai-Hsiang Liao (7th from right), CWE Group Chairman Canon Huang (6th from right), CWE Chairman and CWTC President Chuen-Sing Hung (4th from right), and Tian Zheng International Precision Machinery President and JMC Chairman Wen-Tsai Wan (5th from right).