Applied Materials is moving forward with its $17 million Tainan, Taiwan, manufacturing centre expansion, holding a groundbreaking ceremony at the site yesterday.

The expansion aims to increase the company's ability to meet demand for both its AKT flat panel display equipment and SunFab Thin Film Solar manufacturing equipment. Applied expects new facility to be completed by mid-2009.

"This year's strong demand for flat panel equipment and the added requirements to support our fast growing SunFab business in Asia have created a need to increase our capability in Asia," said Gilad Almogy, group VP and general manager of the Santa Clara-based company's display and thin film solar products group, in a statement.

"Having greater manufacturing and supply chain capabilities close to our customers will enable a faster response and provide additional value to customers."

Applied's Tainan manufacturing centre will supplement existing operations for display and solar in the United States and in Germany, where the company in October 2007 opened a 2,000-square-meter SunFab centre.

The Tainan expansion adds 7,200-square meters of new production area, bringing the total manufacturing area at the plant to 14,000-square meters. When complete, the campus will have about 150 employees, Applied estimated.

Yesterday's groundbreaking follows on Applied's June 2007 opening of a 300mm wafer 3,120-square-meter reclaim centre at the Tainan plant. More recently, Applied this month broke ground for the construction of a new operations facility in Singapore that will serve as the semiconductor manufacturing equipment giant's hub for business activities in Asia.

By Suzanne Deffree, Managing Editor, News - Electronic News