Sigurd UTC approved to invest NT$2.9bn

INCENTIVE PROGRAMS: The InvesTaiwan Service Center had as of Friday approved 1,015 applications from Taiwanese firms to invest a total of NT$1.36 trillion locally

By Chen Cheng-hui / Staff reporter

 

The InvesTaiwan Service Center last week approved an application by Sigurd UTC Corp (矽格聯測) to invest NT$2.9 billion (US$103.4 million) to add clean rooms and expand the smart production lines at its plants in the Hsinchu Science Park (新竹科學園區), the Ministry of Economic Affairs said.

The investment by Sigurd UTC, which focuses on chip packaging technology development and wafer testing services, comes as more semiconductor companies are expanding manufacturing capacity thanks to increasing demand.

“A realignment of the global supply chain triggered by US-China trade tensions, opportunities for remote working and distance learning created by the COVID-19 pandemic, and the future of 5G applications are all driving forces in the development of the semiconductor industry,” the ministry said in a statement on Friday.

Sigurd UTC expects the new investment to increase its market share in the semiconductor packaging and testing business, the ministry said, adding that the investment would create 182 job opportunities.

Sigurd UTC was known as UTAC Taiwan Corp (聯測科技) before it was acquired by Sigurd Microelectronics Corp (矽格), which announced the NT$4.62 billion purchase in January and completed the deal in April. In 1995, Singapore’s UTAC Holdings Ltd established UTAC Taiwan as its local chip testing arm.

Sigurd UTC has production facilities at the Hsinchu Science Park and receives orders from integrated device manufacturers, pure-play wafer foundry firms and fabless design firms, the company’s Web site says.

Thanks to the sales revenue contributed by Sigurd UTC, parent company Sigurd Microelectronics on Friday reported consolidated revenue of NT$1.53 billion for last month, up 33.16 percent from a year earlier and its third-highest monthly total, bringing its overall revenue for the third quarter to a record NT$4.68 billion, up 41.95 percent from a year earlier.

Sigurd UTC was one of six local companies that the InvesTaiwan Service Center last week approved to join the government’s three major investment incentive programs, the ministry said.

The center also approved Sushi Express Co Ltd’s (爭鮮) application to invest NT$1.5 billion at the Taichung Industrial Park (臺中工業區), as the conveyor-belt sushi chain operator plans to build a new plant with intelligent production lines, the ministry said, adding that the firm also operates production sites in New Taipei City, Taichung and Kaohsiung.

The others were Asiatic Fiber Corp (豪紳纖維科技), Master Transportation Bus Manufacturing Ltd (成運汽車製造), Janseen Business Co Ltd (至信實業) and Lu Kang Electrify Co Ltd (鹿港電器), the ministry said.

As of Friday, the center had approved 1,015 applications from Taiwanese businesses to invest a total of NT$1.36 trillion through the three incentive programs launched in early 2019, the ministry said.

The incentive programs provide participating companies with assistance for financing, taxation, land, utilities and labor, and the investments pledged so far are expected to generate 115,011 jobs, it said.

Another 52 firms are awaiting approval to invest, it added.