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Applied Materials is expanding its equipment manufacturing capabilities in Taiwan with the construction of an extension to its Tainan Manufacturing Center at a cost of $17 million. Demand for its AKT flat panel display equipment and SunFab Thin Film Solar equipment was the reason for the expansion, which should be completed in mid-2009, Applied said.

“We are pleased that Applied Materials, the world leader in nanomanufacturing technology, has chosen to expand their operations in Taiwan,” said Dr. Lou-Chuang Lee, Minister of the Taiwan National Science Council. “Here in Tainan they will be able to take advantage of a number of Taiwan’s manufacturing advantages, including our strong talent pool, extensive local flat panel display customer and supplier base, and favorable location.”

The expansion will add 7,200 square meters of new production area, doubling the existing space and employing 150 people.