Nanya plans to expand its semiconductor factory in Pingtung Science Park, with an investment scale of hundreds of billions

After TSMC selected the Pingtung Science Park for its semiconductor supply chain area, the development of the park has accelerated. Pingke public construction will be completed by the end of this year. It is expected that seven TSMC semiconductor supply chain and aggregation international Pingke factories will break ground this year. (File photo)

[Reporters Gao Jiahe and Wu Boxuan/Comprehensive Report] Nanya, a major DRAM manufacturer under the Formosa Plastics Group, is about to finalize its largest factory construction project in history to move out of the north. It was previously reported that there was a tug of war between the "Yunlin Huwei Industrial Park" and the "Pingtung Science Park". The latest news pointed out that after a comprehensive assessment of the industrial cluster effect and infrastructure and other conditions, the Pingtung Science Park was prioritized for the first wave of factory expansion. The National Science Council is expected to hold a science park review meeting on October 1 to formally decide on the case, adding a new force to the southern semiconductor S corridor.

Nanya's investment plan is estimated to be worth hundreds of billions of dollars, and is regarded as Formosa Plastics Group's largest technological expansion in history. The goal is to fully enter the next-generation dynamic random access memory (DRAM) and customized markets, and plans to introduce 10-nanometer level (such as 1B, 1C) advanced processes and extreme ultraviolet (EUV) equipment.

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According to reports, TSMC is a key factor in Pingtung Science Park’s ability to stand out. TSMC has previously announced the launch of Taiwan’s first “semiconductor supply chain zone” in Pingtung, covering an area of approximately 28 hectares.

TSMC will not only set up a multi-service center and verification laboratory in Pingke, but also directly bring seven key factory and equipment supply chain partners including Fanxuan, Huamao Technology, and Anbao Power to settle in.

For Nanya, TSMC has established an ecosystem for building local factories. Whether it is the construction of clean rooms in high-end factories, the supply of special chemicals, or subsequent equipment maintenance, strong technical support can be obtained nearby, which can greatly shorten the trial production time of Nanya's new factories.

The "Yunlin Huwei Industrial Park", which originally had a high reputation and is close to the headquarters of Formosa Plastics Mailiao Liuqing, is said to be the lifeblood of semiconductor factories.

The manufacturing process of 12-inch advanced memory wafer fabs requires extremely large amounts of pure water. However, Huwei Industrial Park is a "severe stratigraphic subsidence area" in terms of geography and regulations. The central and local governments have extremely strict controls on groundwater extraction and overall water resource distribution. If Nanya chooses to locate here, it will have thousands to tens of thousands of tons of water demand every day. It must submit an extremely strict "water use plan" to the Water Conservancy Department of the Ministry of Economic Affairs.

In addition to the lengthy and time-consuming review, regulations may also require Nanya to introduce a very high proportion of wastewater recycling system, or be forced to bear the high cost of recycled water and seawater, or even face operational risks of unstable water supply during dry periods.

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