Letter of Intent BASF, Taiwan’s Ministry of Economic Affairs to Advance Semiconductor Manufacturing

Under a Letter of Intent signed between BASF and Taiwan’s Ministry of Economic Affairs, both the parties will work together to support the growth of Taiwan’s semiconductor ecosystem. BASF’s Electronic Materials business will also expand its Kuanyin site in Taoyuan with additional production capacity for advanced semiconductor materials.

Taipei/Taiwan – BASF has recently signed a Letter of Intent (LOI) with Taiwan’s Ministry of Economic Affairs (MOEA), underscoring its long-term commitment to supporting the growth of Taiwan’s semiconductor ecosystem.

Through this investment, BASF’s Electronic Materials business is expanding its Kuanyin site in Taoyuan with additional production capacity for advanced semiconductor materials, enhanced quality analysis capabilities, and an expanded Innovation Center. The investment is designed to support increasing global demand for leading-edge semiconductor manufacturing technologies, including advanced nodes below 2 nanometers, while strengthening supply chain resilience and customer proximity.

“Taiwan is a global hub for semiconductor innovation and manufacturing, with leading-edge process technologies and a highly integrated industry ecosystem. Setting the strategic base for BASF’s global Electronic Materials operations in Taiwan in 2025 reflected the strategic importance of Taiwan within the global semiconductor ecosystem and reinforced our confidence in the market’s long-term growth potential,” said Gops Pillay, President, Global Operating Division of BASF.

As the semiconductor industry progresses toward process nodes below 2 nanometers, demand for advanced, high-purity specialty chemical formulations continues to rise. Through the expansion of its Kuanyin site, BASF will strengthen its Innovation Center and broaden its technical and analytical capabilities for leading-edge semiconductor technologies supporting the AI era. The investment will deepen collaboration with key industry partners, enabling the joint development of next-generation materials while reinforcing Taiwan’s position as a global semiconductor innovation hub.

The investment will further strengthen BASF’s local manufacturing, quality assurance and technical service capabilities in Taiwan, enabling the company to provide customers with a more reliable supply of advanced semiconductor materials, faster technical support, and closer collaboration. At the same time, it will enhance supply chain resilience and reinforce BASF’s role as a trusted long-term partner to the semiconductor industry.

“The signing of this Letter of Intent marks another important milestone in BASF’s long-term commitment to the semiconductor industry,” said Jens Liebermann, Senior Vice President, Global Electronic Materials business and Chairman of BASF Taiwan. “As semiconductor technologies continue to advance, innovation in materials must keep pace with our customers’ evolving needs. By strengthening our local manufacturing, innovation, and technical service capabilities, we are deepening collaboration with our customers and accelerating the development of materials solutions for future technology generations, while further enhancing supply chain resilience.”

As a trusted materials partner to the global semiconductor industry, BASF’s Electronic Materials business has maintained a strong presence in Taiwan for more than two decades. The business provides high-performance process chemicals and customized formulation solutions for the advanced semiconductor and display industry as well as specialized metal systems for consumer electronics applications.

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