TSMC’s relentless fab expansion is spilling down the supply chain, with Taiwan’s Da Yi Cheng Technology sitting on more than NT$10 billion (€281 million) in orders.
According to DigiTimes, the electrical and mechanical engineering outfit has grown as semiconductor manufacturers pour cash into new production capacity and the infrastructure needed to run those fabs.
Da Yi Cheng Technology, usually shortened to DYC, specialises in the second-stage electrical and mechanical installation work required once the glamorous chipmaking kit starts arriving. It is the less exciting end of semiconductor expansion, involving the power, utilities and engineering needed before billions of euros worth of manufacturing equipment can start turning wafers into something useful.
DYC’s order visibility now stretches through 2028, giving it a fairly comfortable view of the industry’s construction pipeline while semiconductor companies continue building capacity. TSMC is the main engine behind the boom, having expanded production in Taiwan while pushing ahead with new manufacturing operations overseas.
That investment has created plenty of work for contractors which can install and integrate the increasingly complicated infrastructure surrounding advanced semiconductor fabs. DYC has been taking the experience it gained in Taiwan and applying it to projects in the US, Japan, Germany and Singapore.
The international push mirrors the semiconductor industry’s increasingly expensive attempt to spread manufacturing beyond its traditional Asian strongholds. Governments may enjoy cutting ribbons and talking about semiconductor sovereignty, but somebody still has to install the electrical systems and other engineering needed to stop a shiny new fab becoming an extraordinarily costly warehouse.
DYC’s swelling order book shows how far TSMC’s expansion reaches beyond lithography machines, cleanrooms and wafer-processing equipment. Advanced fabs require vast amounts of supporting electrical and mechanical infrastructure, creating a secondary supply chain which can remain busy long after the initial construction contracts are signed.
For DYC, that means work extending into 2028 while TSMC and the rest of the semiconductor industry continue throwing increasingly heroic sums at new production capacity.
