Japan-based Shin-Etsu Chemical is considering to build a new plant in Taiwan, in order to expand its photoresists-related business.
Shin-Etsu Chemical has applied to the Taiwan authorities for a construction permit, and the construction will start once the permission is granted.
The company will invest around JPY13bn ($108m) in its new plant, which will take a year to construct.
A photoresist is a photosensitive polymer material used in the manufacturing process of semiconductor devices.
Photoresists are used in the semiconductor lithography process, which forms patterns coated with a photoresist by exposing integrated circuits to light through a mask and developing high-precision three-dimensional patterns on the silicon substrate after heat treatment.
The committee at Shin-Etsu Chemical decided to pursue the research and development of photoresists as one of its main research and development themes.
Shin-Etsu Chemical said the demand for photoresists-related products is growing in Asia and the US with the increase in production volume of semiconductor devices and advances in microfabrication.
By producing photoresists-related products in Taiwan, the company will steadily capture the growing demand for photoresists.
In addition, by having two production bases for photoresists-related products, the combination of the existing Naoetsu Plant and the new Taiwan Plant, the company will be able to achieve the dispersion of business risks and further strengthen its photoresists business.