Yageo Corporation recently broke ground on a new NT$5 billion ($175.4 million) Taiwan-based passive components manufacturing facility. The company intends to locate the plant in Kaohsiung City and put it into operation in August 2022.
The new factory will be built to increase Yageo’s production capacity and protect its supply chain from global trumoil.
Although Yageo’s headquarters is located in New Taipei City, its domestic production scale has not expanded in 15 years.To break the original pattern, Yageo plans to build a new factory in Kaohsiung.
The facility will be 10 stories high, occupy 923,543 square feet, and employ 3,000 local workers. The factory will become the company's largest domestic production base, and its area will be 1.3 times larger than the two adjacent factories.
After the Kaohsiung plant put into use, it will produce inductors, chip resistors and multilayer ceramic capacitors (MLCC). Yageo has pledged to spend NT$13 billion to NT$15 billion (NT$455.6 million to US$525.7 million) to equip the factory with the latest and most advanced production equipment. The base will enable the company to increase its monthly domestic MLCC production from 50 billion units to 60 million units.
In the past two years, Yageo has actively expanded its global market share through two acquisitions of high-priced companies. The two transactions helped the company develop its wireless component and capacitor product portfolio and its business.
Yageo’s Kaohsiung plant will play an important role in further developing its long-term expansion strategy. This will also help the company mitigate the risks of the coronavirus pandemic and the Sino-US trade war.