TAIPEI (Taiwan News) — The world’s largest air conditioning manufacturer Daikin Industries opened its new air conditioning factory in Changhua on Tuesday.

In partnership with Leading Electric and Machinery and Hotai Development, joint venture Daikin Taiwan Air Conditioning Systems will provide Taiwanese chipmakers like TSMC with industrial air conditioners, per Nikkei Asia. It was started with capital of NT$167 million (US$5.1 million) and is Daikin’s first factory in Taiwan, per UDN.

Large-scale air conditioners used in semiconductor fabs and data centers require a chiller, a sophisticated machine that removes heat from a liquid coolant. Then, an air handler sends cool air throughout the facility.

However, air handlers are large and have high transportation costs, so they are generally made near places that need them. Furthermore, fabs require strict management of temperature, humidity, and air purity, making air conditioning a key part of chipmaking.

Daikin has been selling residential and commercial units for stores and offices through its agent Heran Engineering since 1992, per Liberty Times. The conglomerate has made forays into North America, buying out San Diego-based air handling equipment manufacturer Alliance Air Products for about US$191 million in 2023.

In September, the Japanese conglomerate signed an MOU to acquire an additional 13.4 hectares to build a new plant near its current factory in southern India, per Japan Times.