BASF plans to expand its Taoyuan facility in Taiwan, increasing semiconductor materials production, quality analysis and innovation capabilities to support next-generation chips using process technologies below 2 nanometres.
German chemical company BASF has announced plans to expand its semiconductor materials manufacturing capabilities in Taiwan to meet growing global demand for advanced chips, particularly those using process technologies below 2 nanometres. The expansion will strengthen production capacity, quality analysis and research capabilities at its Kuanyin site in Taoyuan.
BASF signed a letter of intent (LoI) with Taiwan’s Ministry of Economic Affairs to support the development of the country’s semiconductor ecosystem. The agreement reflects the company’s long-term commitment to Taiwan, a major global centre for semiconductor manufacturing and innovation.
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Under the planned expansion, BASF’s Electronic Materials business will add production capacity for advanced semiconductor materials and enhance its quality analysis capabilities. The company will also expand its Innovation Center at the Kuanyin facility, strengthening its technical services and ability to collaborate with semiconductor manufacturers on next-generation materials.
The investment is designed to address rising demand for high-purity specialty chemicals used in increasingly sophisticated chip manufacturing processes. As semiconductor manufacturers move towards technologies below the 2-nanometre node, materials must meet increasingly stringent purity, reliability and performance requirements. BASF aims to support these needs through closer technical collaboration and improved local production capabilities.
The expansion is also expected to strengthen supply chain resilience by improving the availability of advanced materials closer to customers. Local manufacturing and enhanced technical support could help semiconductor producers address supply requirements and respond more efficiently to manufacturing challenges.
BASF established Taiwan as the strategic base for its global Electronic Materials operations in 2025, reflecting the market’s importance to the company’s semiconductor business. Its Electronic Materials division has operated in Taiwan for more than two decades, supplying process chemicals, specialised formulations and metal systems for semiconductor, display and consumer electronics applications.
The latest initiative comes as demand for advanced semiconductors continues to grow, driven partly by artificial intelligence, high-performance computing and other data-intensive technologies. However, BASF has not disclosed the planned investment amount or a detailed completion schedule.
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The expansion reinforces Taiwan’s role in the global semiconductor supply chain while positioning BASF to support manufacturers developing increasingly advanced chip technologies.