JSR, a Japanese semiconductor materials company, will establish its first production base in Taiwan. The company plans to build a one-stop system covering research, development, and manufacturing locally, strengthening cooperation with TSMC to counter the rapid advance of Chinese rivals.
According to the Nihon Keizai Shimbun on Wednesday, JSR set up a joint venture with a Taiwanese company earlier this month. The production site targets operations starting in 2028 and will primarily manufacture photoresist, the light-sensitive liquid coated onto semiconductor wafers. JSR previously operated only research and sales bases in Taiwan, but the addition of production capacity is expected to enable the company to handle the entire manufacturing process locally.
Japan commands about 80 percent of the global photoresist market. However, with Chinese companies growing rapidly, analysts say JSR is moving to narrow the gap with TSMC, which holds the most advanced semiconductor technology. With JSR's expansion, all of Japan's top three photoresist makers will now have production bases in Taiwan. The new site is also considering manufacturing various materials, including CMP slurry, a polishing liquid used to flatten semiconductor wafer surfaces, Nikkei reported.
JSR is also pushing ahead with investment in Korea, another semiconductor powerhouse. Targeting Samsung Electronics (005930.KS) and SK hynix (000660.KS), its next-generation metal-oxide-based photoresist (MOR) plant in Ochang, North Chungcheong Province, is set to begin operations within the year.
