Manz Taiwan Ltd, a supplier of advanced chip packaging equipment, is considering opening a sales office in the US to support key customers expanding in the region, said company president Robert Lin.

The company operates manufacturing sites in Taiwan and China, and service offices in Malaysia, India, and Japan.

However, it has no plans to build a US manufacturing facility due to operating costs being at least 50% higher than in other locations.

The company has delivered 8,000 units of semiconductor and display equipment globally, with revenue split evenly between the two. Clients include Lam Research, ASE Technology, Powertech, and Innolux.

🔗 Source: Taipei Times

🧠 Food for thought

1️⃣ Following the chips act money trail

Manz Taiwan’s US expansion strategy directly tracks with the massive growth in American semiconductor manufacturing driven by the CHIPS Act.

The US is projected to triple its semiconductor manufacturing capacity by 2032, representing the highest growth rate globally, creating natural demand for equipment suppliers like Manz to establish local support operations 1.

This follows an industry pattern where equipment vendors follow their customers’ geographic expansions to provide crucial on-site support for complex manufacturing tools.

The decision to limit US investment to a sales office rather than manufacturing reflects the economic reality that US production costs would be at least 50% higher than Manz’s existing facilities in Taiwan and China.

This approach aligns with the broader semiconductor equipment industry’s strategy of maintaining manufacturing in cost-efficient Asian hubs while establishing service networks near customer facilities in higher-cost regions.

2️⃣ Equipment market growth supports independence strategy

Manz’s management buyout and IPO plans are timed to capitalize on projected strong growth in the semiconductor equipment sector.

The global semiconductor manufacturing equipment market is forecast to expand from $109.24 billion in 2024 to $155.09 billion by 2029, representing a robust 7.3% CAGR 2.

This growth environment creates favorable conditions for Manz’s transition to an independent entity and subsequent public offering, potentially allowing the company to raise capital for further expansion.