By Gabby Chen

Gudeng (家登集团), Taiwan region’s major wafer carrier supplier, said that it would not withdraw from the China mainland market after its subsidiary failed to complete a transaction with a China mainland client because of geopolitical factors, reported Economic Daily News on December 28.

It was reported that Gudeng’s subsidiary Gudeng Equipment (家登自动化) notified a few China mainland clients to halt the supply of related equipment. It has negotiated proper methods to deal with it, fulfilling its contractual rights and obligations.

Gudeng is a leading supplier of fab equipment to companies like TSMC. There are press reports that its China mainland clients might include those on the export control lists by US government.

Gudeng stressed that the current problem it countered was merely a single case due to specific product with contract volume around TWD1 million ($33,000). Other Gudeng Equipment’s products, operations and financial status are not affected, said the company.

In order to reduce geopolitical impact and achieve better efficiency of capital utilization, the company has been actively discussing with major customers and adjusting trade terms, which have been completed gradually.

Gudeng has good performance in Chinese mainland market. Its overall revenue from the Chinese mainland hit a new monthly high in November this year. December is also likely to be another high.

Founded in 1998 and listed in 2011 on Taiwan Stock Exchange, Gudeng is headquartered in New Taipei City. It provides comprehensive wafer and mask carrier solutions.

Now Gudeng Equipment is implementing relevant measures to minimize the capital risk through approaches such as advance payment or shortening the payment term. It is expected to achieve a more effective shipping arrangement even at full capacity.