Page 38 - 2019 Annual Report Hsinchu Science Park

36 Hsinchu Science Park 2019Annual Report
Promote world prosperity with innovation, provide industries with advanced materials
A global leader in materials science/DuPont Taiwan
President Dennis Chen
Established in 1802, DuPont de Nemours, Inc. has evolved over the past more than 200 years into a science-based business that draws on an exceptional R&D capacity to provide industrial clients with cutting- edge materials. Long committed to safety and health, respect for humanity, and the most exacting code of conduct possible, DuPont is doing it share to help drive the global economy and ensure environmental integrity simultaneously.
Trade dispute, pandemic induce need to diversify production sites
The outburst of 5G and AI applications has led to a steady increase in semiconductor demand in recent years. Many electronic components, such as MLCCs, are even hit by a supply shortage. For its part, DuPont has aggressively expanded its chemical mechanical planarization (CMP) capacity in Taiwan to accommodate growing demand deriving from more stringent wafer requirements imposed by the semiconductor industry’s more advanced manufacturing processes.
Given the world’s economic swings caused by cross- border trade disputes, both DuPont and its clients fared not so well in the first half of 2019. As the year 2020 unfolds, markets are once again cast in uncertainty because of the spread of Covid-19.
“This pandemic will certainly have businesses think doubly hard about decentralization,” President Chen says. “Excessive concentration of production capacity makes it urgent to diversify in order to mitigate the risk caused by international developments or other emergencies. In the days ahead, DuPont is ready to adjust capacity allocation and strategic development as dictated by the policies of governments and customer needs.”
President Chen stresses that DuPont, by strengthening cooperation and interdependence with customers, seeks to stay competitive over the long haul and keep cyclical impact to a minimum, thereby ensuring long-term growth.
Bolster R&D in Taiwan to support Asian expansion
In Taiwan, DuPont deals mainly in electronics and imaging and provides such products as semiconductor consumables and PCB materials. In addition to pads needed in wafer manufacturing, DuPont expects robust demand for copper-clad laminates used in wiring and packaging that are needed to accommodate 5G’s requirements for provision of high bandwidth and high speed.
DuPont operates two R&D centers in Taiwan. The one in Jhunan focuses on developing materials for the applications side. In addition to developing electronics interconnection technology, substrates, and etching materials, the one in Hsinchu also has an experimental production line meant for pilot products. Through these innovative R&D centers, DuPont aims to build on its competitive edge—global innovation, local solutions— to provide customers in Taiwan and other parts of the Asia-Pacific with better-rounded services.
Stability key to corporate growth
Fully aware of the importance of talent supply to corporate development, DuPont has given top priority to talent cultivation since its opening shop in Taiwan. To grow talent needed for the long haul, DuPont has implemented an industry-academia collaborative program that recruits students—from university juniors to first-year graduate students—as interns.
Separately, DuPont routinely sets aside 4% of annual revenues as R&D funds. It stood by the practice in 2019 even though capacity utilization came under considerable pressure. The goal is to have new products and technologies account for 30% of its revenues each year.
In terms of corporate stability, President Chen says: “The strength of Taiwan’s science parks lies in their cluster effect. Businesses value fairness and stability most when considering investment.” While Taiwan already commands a decisively dominant position in the semiconductor industry’s global supply chain, DuPont hopes that the government will persist with creating a better-rounded investment environment conducive to fair competition. This will definitely attract more investment from foreign businesses.