Orders soar for Taiwan cleanroom firms amid global chip industry expansion

New Delhi [India], June 23 (ANI): Taiwanese cleanroom companies are receiving a wave of new orders as major global chipmakers expand production around the world, especially in the United States and Southeast Asia.
United Integrated Services Co. (UIS), a longtime supplier to Taiwan Semiconductor Manufacturing Co. (TSMC), is one of the main winners in this trend.
From January to May 2025, UIS secured NTD (New Taiwan dollar) 83.68 billion (USD 2.57 billion) in cleanroom-related contracts -- a new record for the company.
Much of this growth is tied to TSMC's massive investment of USD 65 billion in three chip factories, known as 'fabs,' in Arizona. The first fab has already started mass production, and the second is nearly finished.
With a total order backlog of NTD 132.27 billion (USD 4.45 billion), UIS is expected to receive even more orders later in 2025. Experts predict the company will have its highest-ever sales in 2025.
L&K Engineering Co., another major cleanroom provider, is also seeing strong demand. It reported NTD 95.76 billion (USD 3.23 billion) in new orders in the first five months of the year, largely from Taiwanese firms building new fabs in Southeast Asia.
L&K now has a total backlog of NTD 208.49 billion (USD 7.02 billion). Some of this comes from projects with United Microelectronics Corp. (UMC), which recently opened a new fab in Singapore.
Production there will start in 2026. L&K is also working with Vanguard International Semiconductor Corp., which is building a 12-inch fab in Singapore with Dutch company NXP Semiconductors. That plant will start production in 2027.
Other Taiwanese firms like Acter Group Corp. and Yankey Engineering Co. are also doing well. Acter now holds over NTD 46 billion (USD 1.55 billion) in orders, up from NTD 38 billion (USD 1.28 billion) at the end of 2024, helped by business from chip packaging company Siliconware Precision Industries Co.
Yankey Engineering has NTD 40.67 billion (USD 1.37 billion) in orders, supported in part by Dutch equipment maker ASML's expansion in Taiwan.
Cleanrooms are a critical part of chipmaking. They remove dust and other particles that could damage delicate components during production. As chip companies grow worldwide, demand for these high-tech spaces is rising -- and Taiwanese firms are leading the way. (ANI)

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Economic Times

16 minutes ago

• Economic Times

Higher crude oil prices a net positive for upstream cos, possibly for OMCs too: Kotak Equities

The recent rise in crude oil prices may prove beneficial not only for upstream oil companies but also for oil marketing companies (OMCs), according to a report by domestic brokerage firm Kotak Institutional Equities. ADVERTISEMENT In a recent note, the brokerage highlights that the latest rally in oil prices, with Brent crude being up 15% since early June, could aid upstream companies such as ONGC and Oil India by lifting their net realizations and earnings. "Brent has moved up to US$85/bbl from US$74/bbl earlier in the month," the brokerage said, adding that every US$1/bbl increase in Brent prices adds Rs 2.4–2.5/share to ONGC's EPS and Rs 3.5–4/share to Oil India's EPS, assuming no changes in government levies. According to Kotak, ONGC's base case assumes an oil price of US$80/bbl Interestingly, the brokerage also sees the potential for OMCs to benefit from higher oil prices under current market conditions. 'Oil marketing companies (BPCL, HPCL, IOCL) may benefit too, if the government maintains current pump prices,' Kotak stated. The report notes that despite the recent increase in Brent prices, auto fuel prices have remained unchanged in India, implying potential margin expansion for OMCs. ADVERTISEMENT "OMCs are seeing marketing margins rise to Rs 5.6/liter for diesel and Rs 7/liter for petrol," the report stated, assuming average Brent at US$85/bbl and a USD/INR exchange rate of Kotak points out that HPCL's marketing EBITDA was Rs 3.5/liter in FY24, suggesting that current margin levels may offer substantial upside if they persist. The firm acknowledges that while refining margins remain modest, the improving marketing profitability may offset those concerns. ADVERTISEMENT On refining, the brokerage notes that gross refining margins (GRMs) continue to be relatively weak, with Singapore complex GRM currently at US$3.5–4/bbl, and diesel cracks at US$13–14/bbl, which are below seasonal averages. Also read: HDB Financial Services GMP at 6.3% ahead of IPO. What should investors do? ADVERTISEMENT Nevertheless, the note emphasizes that product cracks are not as weak as GRMs suggest, and that the margins are still acknowledging the volatility in the crude market, Kotak Institutional Equities underlines that higher oil is unequivocally good for upstream companies and may not hurt OMCs in the near term either. ADVERTISEMENT The brokerage firm also stated that it continues to prefer ONGC and Oil India among upstream players and maintains a 'buy' rating on both stocks. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)

Time of India

25 minutes ago

• Time of India

Higher crude oil prices a net positive for upstream cos, possibly for OMCs too: Kotak Equities

The recent rise in crude oil prices may prove beneficial not only for upstream oil companies but also for oil marketing companies (OMCs), according to a report by domestic brokerage firm Kotak Institutional Equities. In a recent note, the brokerage highlights that the latest rally in oil prices, with Brent crude being up 15% since early June, could aid upstream companies such as ONGC and Oil India by lifting their net realizations and earnings. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Indonesia: New Container Houses (Prices May Surprise You) Container House | Search ads Search Now Undo "Brent has moved up to US$85/bbl from US$74/bbl earlier in the month," the brokerage said, adding that every US$1/bbl increase in Brent prices adds Rs 2.4–2.5/share to ONGC's EPS and Rs 3.5–4/share to Oil India's EPS, assuming no changes in government levies. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. According to Kotak, ONGC's base case assumes an oil price of US$80/bbl Interestingly, the brokerage also sees the potential for OMCs to benefit from higher oil prices under current market conditions. 'Oil marketing companies ( BPCL , HPCL , IOCL ) may benefit too, if the government maintains current pump prices,' Kotak stated. Live Events The report notes that despite the recent increase in Brent prices, auto fuel prices have remained unchanged in India, implying potential margin expansion for OMCs. "OMCs are seeing marketing margins rise to Rs 5.6/liter for diesel and Rs 7/liter for petrol," the report stated, assuming average Brent at US$85/bbl and a USD/INR exchange rate of 83. Furthermore, Kotak points out that HPCL's marketing EBITDA was Rs 3.5/liter in FY24, suggesting that current margin levels may offer substantial upside if they persist. The firm acknowledges that while refining margins remain modest, the improving marketing profitability may offset those concerns. On refining, the brokerage notes that gross refining margins (GRMs) continue to be relatively weak, with Singapore complex GRM currently at US$3.5–4/bbl, and diesel cracks at US$13–14/bbl, which are below seasonal averages. Also read: HDB Financial Services GMP at 6.3% ahead of IPO. What should investors do? Nevertheless, the note emphasizes that product cracks are not as weak as GRMs suggest, and that the margins are still reasonable. While acknowledging the volatility in the crude market, Kotak Institutional Equities underlines that higher oil is unequivocally good for upstream companies and may not hurt OMCs in the near term either. The brokerage firm also stated that it continues to prefer ONGC and Oil India among upstream players and maintains a 'buy' rating on both stocks.

Business Standard

34 minutes ago

• Business Standard

Any pressure on INR likely to be confined to short run, given the robust fundamentals and comfortable current account situation, notes RBI minutes

The Reserve Bank of Indias MPC member noted in the minutes of Monetary Policy Committee Meeting, June 4 to 6, 2025 that the 50-basis-point rate cut in this cycle seems very reasonable and highly desirable. Moreover, the current situation warrants a front-loaded rate cut. However, a relatively big interest rate cut would mean that the interest rate differential with the U.S. Fed would reduce to lowest levels in recent time, the minutes noted. This, ceteris paribus, can put pressure on the rupee, especially vis-vis the USD. However, given the robust fundamentals of Indian economy including comfortable current account situation, any pressure on INR is likely to be confined to short run, according to MPC member Prof. Ram Singh. Further, a pick in growth can more than offset the adverse effect of reduced interest rate differentials, if any, he added.