Taiwan-funded Yageo Corporation will build its second plant at the Suzhou National High-tech Industrial Park by investing US$70 million to expand the production of multi-layer ceramic capacitors (MLCCs).

As part of its strategy to make the Chinese mainland a manufacturing base, the new plant, expected to be launched next year, will have two production lines with a combined production capacity of 2 billion pieces of MLCC per month, said Pierre Chen, chief executive officer of Yageo Corporation.

In its efforts to strengthen its market position on the mainland and upgrade time-to-market customer services, Yageo launched its first ever MLCC full production line in the fourth quarter of 2003 with monthly production reaching 1 billion pieces. Yageo's strategy is to let Taiwan become a base for research, development and purchasing, while the mainland becomes a base for manufacturing and sales. Under the strategy, the mainland is expected to take up 35% of Yageo's global sales this year, Taiwan 34% and Europe the remaining.

Yageo's R chips and MLCC products have been widely used in the production of mobile phones, notebook computers and IT products. The corporation expects to further boost its market share and dominance on the mainland on the back of its competitive production capabilities.