Sumitomo Chemical is all set to expand its global footprint in the booming semiconductor market.

The company has announced a definitive agreement to acquire 100% of Taiwan-based semiconductor process chemicals company Asia Union Electronic Chemical Corporation (AUECC). The deal, subject to standard regulatory approvals, will mark Sumitomo’s first manufacturing base in Taiwan and its second in the United States, alongside its Texas facility.

The acquisition positions Sumitomo Chemical to capitalize on surging global demand for semiconductors, driven by IoT growth, the rise of generative AI, and expanding data center needs. Semiconductor manufacturing increasingly requires ultra-high-purity chemicals for precision processes, and Sumitomo aims to leverage its technological expertise and robust supply network to meet these exacting standards.

Founded in 1998, AUECC operates production sites in Kaohsiung, Taiwan, and Nevada, US, and is known as leading semiconductor manufacturers across Asia and the United States.

Through this acquisition, Sumitomo Chemical will integrate AUECC’s extensive sales and procurement networks, flexible packaging capabilities, and product range to strengthen its global supply chain and enhance customer solutions. The company expects the merger to generate operational synergies, including increased production efficiency, while reinforcing its long-term strategy to double semiconductor process chemicals sales by FY2030.

“Securing AUECC is a strategic step in cementing Sumitomo Chemical’s leadership in semiconductor materials,” said company officials. “This move reinforces our commitment to delivering high-quality products and stable supply to the global semiconductor industry while supporting the development of a smart society.”