TAIPEI (TVBS News) — Gudeng Precision (家登精密), a Taiwanese semiconductor equipment supplier, is expanding manufacturing in the U.S. and Japan despite high costs, prioritizing client trust over short-term savings as geopolitical factors reshape global supply chains. Chairman Chiu Ming-chien (邱銘乾) announced the strategy Monday (Aug. 31), calling the expenses essential investments to secure major international clients.
"High expenses are necessary to gain the 'absolute trust' of major international companies," Chiu said. The company aims to build its business around client trust to maintain pricing power and market share over the next decade. Gudeng views the overseas expansion costs as strategic investments rather than burdens, Chiu added.
In Japan, Gudeng has completed the beam-raising ceremony for a new plant and plans to establish a clean room by 2027. The facility is expected to begin full-scale production in late 2027 or 2028. The expansion supports the company's dual-production strategy as clients seek supply chain diversification amid geopolitical tensions.
In the U.S., Gudeng has achieved profitability through its 45% stake in Taiwan Semiconductor Supply (TSS, 德鑫大聯盟), a consortium of Taiwanese small and medium-sized enterprises. TSS has acquired two to three CNC machines for basic machining and cleaning at a leased facility, initially serving the aerospace and defense industries. Gudeng plans to introduce automation to offset high U.S. labor costs, while advanced research and development will remain in Taiwan.
In China, Gudeng is focusing on customized mid- and low-end products, which the company expects to contribute 10% to 20% of total revenue. Chiu described China's semiconductor industry as a "gold rush" driven by efforts to achieve self-sufficiency. Gudeng is steering clear of cutting-edge processes to avoid geopolitical complications, he said. ◼