TAOYUAN, October 20, 2026 — Chemical company BASF has signed a Letter of Intent with Taiwan’s Ministry of Economic Affairs to expand its semiconductor materials production at the Kuanyin site in Taoyuan, according to official announcements.
Expanding Production for Advanced Nodes
According to reports from BASF and industry publications, the agreement involves expanding manufacturing capacity for advanced semiconductor materials, boosting quality analysis capabilities, and growing the site Innovation Center. The investment is designed to support increasing global demand for leading-edge semiconductor manufacturing technologies, including advanced nodes below 2 nanometers. As the semiconductor industry progresses toward these smaller process nodes, demand for ultra-high-purity specialty chemicals continues to rise.
The Letter of Intent was signed at the 2026 Taiwan Business Alliance Conference. Jens Liebermann, Senior Vice President of the Global Electronic Materials business and Chairman of BASF Taiwan, signed the document alongside Ming-Hsin Kung, Taiwan Minister of Economic Affairs, according to event documentation.
Strategic Importance of the Taiwanese Market
According to Gops Pillay, President of the Global Operating Division at BASF, Taiwan serves as a global hub for semiconductor innovation and manufacturing, featuring leading-edge process technologies and a highly integrated industry ecosystem. Setting the strategic base for BASF global Electronic Materials operations in Taiwan in 2025 reflected the strategic importance of the market within the global semiconductor ecosystem and reinforced confidence in long-term growth potential, according to company statements.
The expansion aims to deepen ties with local industry leaders, enabling the joint development of next-generation materials for the artificial intelligence era. According to Jens Liebermann, innovation in materials must keep pace with evolving customer needs as semiconductor technologies continue to advance.
Enhancing Supply Chain Resilience
According to BASF SE, based in Ludwigshafen, Germany, the investment will strengthen local manufacturing, quality assurance, and technical service capabilities in Taiwan. This expansion allows the company to provide customers with a more reliable supply of advanced semiconductor materials, faster technical support, and closer collaboration.
The initiative is intended to enhance supply chain resilience and reinforce the company role as a trusted long-term partner to the semiconductor industry, according to corporate releases. The Electronic Materials business of BASF has maintained a strong presence in Taiwan for more than two decades, supporting microchip manufacturing supply chains across the region.
Collaboration with Local Industry Leaders
According to the source material, BASF’s expansion in Taoyuan is aimed at deepening ties with local industry leaders, enabling the joint development of next-generation materials for the artificial intelligence era. This collaboration is expected to leverage Taiwan’s highly integrated industry ecosystem and leading-edge process technologies to co-develop cutting-edge materials that support the advancement of semiconductor manufacturing below the 2-nanometer node.
The investment will facilitate closer collaboration with key industry partners, enabling the joint development of next-generation materials while reinforcing Taiwan’s position as a global semiconductor innovation hub, according to company statements. By strengthening local manufacturing, innovation, and technical service capabilities, BASF aims to accelerate the development of materials solutions for future technology generations, while further enhancing supply chain resilience, as noted in the source material.
Next-Generation Chip Technologies Below 2 Nanometers
According to the source material, the expansion at BASF’s Kuanyin site in Taoyuan is specifically designed to support the development of next-generation chip technologies below 2 nanometers. As semiconductor manufacturing advances toward these ultra-small process nodes, the demand for ultra-high-purity specialty chemicals has surged, requiring significant investment in production capacity and technical capabilities.
The investment will scale up the Innovation Center at the site, enhancing technical and analytical capabilities to power next-generation, AI-era chip technologies. According to the source material, this expansion is intended to meet the rising global demand for leading-edge semiconductor manufacturing technologies, including advanced nodes below 2 nanometers, while improving supply chain resilience and proximity to customers.
Sources
- BASF to build new semiconductor manufacturing plant in Taiwan
- BASF to expand Taiwan semiconductor materials site – Chemical Engineering
- BASF and Taiwan Partner to Advance Semiconductor Manufacturing
Photo: Aileen Devlin/Jefferson Lab from Newport News, USA (Public domain)
