Market news has been reported that Taiwan Electric plans to fade out of its nitride industry, and its Crystal Fifth Factory will also be transformed into advanced packaging after July 1, 2027. This action is a strategic adjustment made by Telco to focus on the high-growth market. Related factories and dust-free facilities can be directly applied, helping to shorten the time to expand advanced packaging capacity.
In fact, in recent years, TAI has established strong advantages and doors in the AI chip market by combining advanced production technology and advanced packaging, and almost no one can win in the AI chip foundry market. As AI applications are being expanded from the cloud to the terminal equipment, the demand for new generation packaging technologies such as WMCM has increased significantly, and Taiwan Power's CoWoS production capacity is also in short supply, prompting the company to conduct frequent operations such as buying factories and expanding.
Therefore, in order to meet customer orders and optimize resource configuration, NTU has recently reduced its investment in mature process fields. In addition to the previous announcement of selling some machine equipment to the world's leading company, we have also begun to further integrate the original 8-inch and 6-inch crystal round plants. The closed crystal round five is part of the related integration plan.
In fact, Taiwan Electric's monthly production capacity in the nitride industry is about 3 to 4,000 6-inch crystal circles, and its main customers include companies such as Navitas, an international power semiconductor manufacturer. Among them, Navitas's monthly tablet production capacity accounts for more than half of the TECHNOLOG nitride electrodes. Therefore, with the NTD plan to fade out of the nitride market, Navitas has turned to cooperation with NTD, making NTD the biggest beneficiary of NTD the withdrawal of the market.
And for related information, Taiwan Electric also proves this situation. Taiwan Power has strengthened its long-term business strategy based on the market and Taiwan Company. The company is working closely with customers to ensure smooth connections during the transition period, and is committed to continuously meeting customer needs during this period, while still focusing on continuing to create value for partners and markets. In addition, the decision will not affect previously announced financial goals.