German chemical group BASF announced on October 20 that it had signed a Letter of Intent (LOI) with Taiwan's Ministry of Economic Affairs to expand its electronic materials facility in Kuanyin, Taoyuan, adding production capacity for semiconductor materials used in sub-2nm processes. The planned expansion also includes upgraded quality analysis facilities and an enlarged Innovation Center. Jens Liebermann, Senior Vice President of BASF's Global Electronic Materials business and Chairman of BASF Taiwan, signed the agreement during the 2026 Taiwan Business Alliance Conference.
The Kuanyin expansion will cover materials manufacturing, research and quality control. BASF plans to increase local production capacity for advanced semiconductor materials while strengthening its analytical and testing capabilities for high-purity specialty chemicals. Processes below 2 nanometers require increasingly stringent material purity and stability. The expanded Innovation Center will support further materials development, technical analysis and joint research with semiconductor industry partners.
BASF has operated its Electronic Materials business in Taiwan for more than two decades, supplying high-performance process chemicals and customized formulations for semiconductor and display manufacturing, as well as specialized metal systems for consumer electronics applications. In 2025, BASF established the strategic base for its global Electronic Materials operations in Taiwan. Gops Pillay, President of BASF's Global Operating Division, cited the island's advanced semiconductor technologies and integrated manufacturing ecosystem as key factors behind its continued importance to the company.
The expansion is intended to increase local materials supply capacity and shorten technical response times for semiconductor customers. Liebermann said materials development must keep pace with changing process requirements, with closer collaboration needed on next-generation formulations. BASF has not disclosed the investment amount, additional production volume or expected completion date.
