TAIWAN Trends and Developments Contributed by: Susan Lo, Chi Lee and Evelyn Shih, Lee and Li Attorneys-at-Law
MIC and Sumitomo’s JV in Japan On 26 June 2025, Taiwan’s Marketech International Corp (MIC) and Japan’s Sumitomo Shoji Machinex Co Ltd (“Sumitomo”) entered into a formal JV agree - ment to establish Marketech SC Semiconductor Co, Ltd in Japan. The JV will combine MIC’s decades-long expertise in high-tech plant engineering and equip - ment integration with Sumitomo’s strengths in materi - als, industrial systems and precision manufacturing. This Japanese JV project is aligned with the MOEA’s “In Taiwan, Out to the World” policy, which encourag - es cross-border industrial co-operation. It will seek to combine Taiwan’s flexibility and efficiency with Japan’s precision and organisational discipline, establishing a collaborative model that supports mutual growth and market expansion. In light of ongoing global supply chain restructuring and heightened focus on national security, this co-operation reflects a proactive strategy to enhance supply chain stability to boost both com - panies’ presence in Japan, Taiwan and international markets. Youngbo Chemical and DCT Material’s JV in Taiwan Also in June 2025, Taiwan’s Youngbo Chemical Co, Ltd announced a JV initiative with South Korea’s DCT Material Co in order to establish a new JV company in Taiwan focused on advanced lithography materials for semiconductor manufacturing. The Taiwanese JV aims to co-develop and commercialise photo-resist technologies for both domestic and international mar - kets, addressing critical industry needs in advanced chip production. Implications of the market expansion These outbound JVs reflect Taiwan’s evolving semi - conductor policies and strategy, led by both public and private sectors, which can be summarised as fol - lows: • geographic diversification to mitigate geopolitical risks and access new markets; • technology collaboration to strengthen capabilities in materials, packaging (“OSAT”) and manufactur - ing; and • supply chain resilience through international part - nerships and localised production.
talent and participate in a regulated, growth-oriented tech environment. Expansion of Outbound JV Activities in Taiwan’s Semiconductor Industry Taiwan’s semiconductor industry continues to experi - ence a marked increase in outbound JVs, reflecting a strategic push towards internationalisation, tech - nology integration and market diversification. These new JV initiatives encompass Japan, South Korea, Singapore and France, among other countries, and highlight Taiwan’s leading role as a global collaborator in the semiconductor supply chain. Below are several examples of recent high-profile cases. Vanguard International Semiconductor and NXP’s JV in Singapore On 4 September 2024, Taiwan’s Vanguard Interna - tional Semiconductor Corporation announced the establishment of a JV company, VisionPower Semi - conductor Manufacturing Company (VSMC), in Singa - pore, in partnership with NXP Semiconductors. This manufacturing-focused JV aims to serve global auto - motive and industrial clients, leveraging Singapore’s strategic location and talent pool to expand Taiwan’s foundry capabilities beyond its borders. Foxconn, Thales and Radiall’s JV in France In May 2025, Foxconn Technology Group, a leading Taiwan semiconductor player, signed a tripartite mem - orandum of understanding (MoU) with France’s Thales SA and Radiall SA to establish a new JV company in France dedicated to advanced outsourced semicon - ductor assembly and test (OSAT). The JV will initially target the European market, serving industries such as automotive, aerospace, 6G communications and national defence. Additionally, the facility of this French JV will primar - ily focus on fan-out wafer-level packaging (FOWLP) technology and will become the first advanced OSAT plant of its kind in Europe. This development repre - sents a significant milestone for Foxconn and marks the beginning of a new phase in its endeavours to enhance the resilience of the global semiconductor supply chain.
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