Universal Crystal: Rising electricity bills diversify Taiwan’s chip maker base

Xu Xiulan, chairman of silicon wafer maker Universal Crystal, said rising electricity costs in Taiwan are prompting local chipmakers to diversify their manufacturing bases and no longer see Taiwan as their first choice.

According to Taiwanese media digitimes, Xu Xiulan pointed out,Taiwan is a major manufacturing base for Universal Crystal, but rising electricity costs have been a challenge for the companywar. Universal Crystal is preparing to expand production capacity for 12-inch and 8-inch silicon wafers, as well as increase production of silicon carbide (SiC) crystal growth and slicing.

Xu Xiulan mentioned that Universal Crystal will maintain the established expansion plan, but due to the lack of labor, rising construction costs and prolonged equipment delivery, some of the expansion progress may be delayed by one quarter. The equipment for the new plant has been reserved, and the location will be to be finalized by the end of June.

Previously, Universal Crystal announced a NT$100 billion capacity expansion plan, which will invest in Asia, Europe and the United States. It is expected that the new capacity will be opened in the second half of 2023.