Unimicron Technology (3037.TW) has recently been embroiled in a “country-of-origin relabeling” controversy, with the Taoyuan District Prosecutors Office reportedly conducting a second round of searches at its Guishan plant on August 31. At a pre-show briefing for SEMICON Taiwan 2026, Chiu Ming-chien, chairman of wafer and reticle carrier leader Gudeng Precision Industrial (3680.TW), said bluntly that the most fundamental basis for Taiwan’s industry achieving its current position in the global supply chain is the trust of Western customers. “The reason you can make big money today is because the West trusts you. If you’re still cutting corners, aren’t you just asking for trouble?” he said. He emphasized that trust is the core of everything, and if the trust built over the long term is destroyed, even the foundation of Taiwan’s industrial development could be affected.
Chiu said that Taiwan’s substantial GDP growth is likewise built on its role as a trustworthy supply chain partner. In his view, amid U.S.-China competition and supply chain polarization, trust means not doing anything that would make Western customers believe a supplier might harm or even betray their interests. Once that foundation is broken, the impact would likely extend far beyond a single order or short-term cost issue.
He further noted that international customers’ requirements regarding country of origin, supply chain sources, and manufacturing processes will only become stricter, and the gray areas where vague practices once operated are rapidly shrinking. For Taiwanese manufacturers, the future is no longer just about competing on cost and efficiency—it is about figuring out how to build supply chain credibility that customers can verify over the long term. Companies must more clearly define their supply chain positioning and pursue opportunities in the non-red supply chain.
Overseas expansion is the cornerstone of earning long-term trust
Using Gudeng’s own overseas expansion as an example, Chiu explained that in an environment of supply chain polarization, even if setting up factories abroad appears more costly, companies should consider whether it is an important cornerstone for securing long-term trust from major customers. He admitted that the Japan plant will still face learning curves in areas such as local operator training, cost, and efficiency. “I don’t know if I can succeed, but at least I think this is important, and I’m going to try my best,” he said.
Gudeng is actively advancing its “Taiwan Plus One” strategy. In Japan, the new plant has completed its topping-out ceremony, with plans for a five-story facility expected to be completed around 2027, followed by gradual volume production from the second half of 2027 through 2028. While initial capacity will not be large, it holds important strategic significance for Gudeng’s goal of becoming a supply chain partner trusted by Western countries. Since the facility includes cleanrooms, semiconductor carrier products such as FOUPs and PODs can be prioritized for appropriate-volume production and validation in Japan.
In the United States, Gudeng has not yet built a complete standalone facility, but has already installed basic processing equipment including CNC machines in existing leased space. There are currently about two to three machines that have begun production, initially focused on aerospace and defense-related processing demand. The company is also seeking key talent and conducting training, with plans to gradually expand semiconductor manufacturing capacity based on market demand.
Chiu stressed that Gudeng will not pursue 100% U.S. manufacturing. Core processes requiring high-level engineers, rapid adjustments, and flexible response may remain in Taiwan, while the U.S. side will incorporate substantial automation to reduce costs and improve resource allocation efficiency across both locations.
On the outlook for U.S. manufacturing, Chiu said the direction of reshoring manufacturing to the United States will not easily change, and future successors are likely to continue along a similar path. He pointed out that geopolitical and war risks have made manufacturing capability a critical foundation of national competitiveness once again. If the United States wants to maintain its global strategic position, it cannot outsource all manufacturing activities. Therefore, Taiwanese companies with deep professional manufacturing capabilities should not shy away from expanding into the U.S. simply because of higher costs. Instead, they should seize the opportunity presented by global supply chain restructuring to become trusted manufacturing and supply chain partners for Western customers.
On current U.S. market operations, Chiu noted that both Gudeng USA and Dexin Semiconductor have reached breakeven and achieved profitability, with more than a decade of experience serving major customers. Dexin’s strong Phase 1 performance was what prompted the push for Phase 2. Gudeng holds more than 40% equity in Dexin, with Gudeng USA handling local agency and after-sales service work to expand service scale and share operating costs. Dexin was jointly established by multiple Taiwanese small and medium-sized enterprises, with the primary goal of using an “alliance approach” to help smaller companies that would struggle to establish a U.S. presence on their own to jointly enter the American market.
Optimistic outlook for advanced packaging carrier revenue
Beyond overseas expansion, Chiu also delivered an upbeat message on Gudeng’s core operations. He noted that as long as one has confidence in Taiwan’s GDP and is positioned along the two industry paths of advanced process technology and advanced packaging, business will be strong from now into the future. Taiwan has multiple semiconductor fab expansion projects ongoing, and as customers expand capacity, Gudeng benefits in tandem. The company holds a positive view on the second half of the year, the first quarter of next year, and the medium-to-long term.
On advanced packaging, Chiu explained that Gudeng began laying out related carriers as early as 2019, and its customer base now spans the globe. Through high-cleanliness carriers, wafers and reticles receive excellent protection during transport and storage, thereby improving advanced packaging production yields. He projects that advanced packaging will account for a gradually increasing share of Gudeng’s revenue from 2026 to 2028, expected to reach double digits and maintain double-digit growth.
Buoyed by strong U.S. POD and China FOUP shipments, Gudeng expects third-quarter performance to outpace the second quarter, with foreign institutional investors estimating that quarterly revenue and profit could challenge record highs. Chiu revealed that he remains optimistic about future order intake and order visibility.
On the China market, he described the situation as “when someone is mining for gold, Gudeng sells the shovels.” China has massive domestic demand and semiconductor investment needs, and the China market currently accounts for roughly 10% to 20% of Gudeng’s revenue. Related demand will continue, and the company will keep operating there. As for major U.S. and Korean customers, he gave positive assessments of both. In particular, the key U.S. customer is an IDM with complete technical capabilities, possessing deep foundations spanning chip design, manufacturing, and packaging. Its development of advanced process technology and advanced packaging is not starting from scratch but rather an extension of existing core capabilities, and its long-term competitiveness should not be underestimated.
Chiu concluded that as the global semiconductor industry shifts from cost-driven to geopolitically and strategically driven, corporate site selection and supply chain planning can no longer be based solely on immediate manufacturing costs. “Cost is an important consideration, but it is no longer the only one,” he said. Maintaining customer trust will become the most important competitive threshold for Taiwan’s semiconductor supply chain in the next phase.