KKR & Co. (NYSE:KKR) is planning to gradually exit Taiwanese semiconductor materials supplier LCY Group following its $1.56 billion investment in 2019.
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LCY Group supplies specialty chemicals to companies including Taiwan Semiconductor Manufacturing Co. and Intel Corp.
LCY Group Chairman Bowei Lee told Bloomberg that he plans to accelerate the company’s semiconductor materials expansion, including boosting planned U.S. investments well beyond initial projections.
KKR’s gradual departure from LCY combined with the leadership transition following Vincent Liu’s retirement could open the door for a more ambitious expansion strategy, Lee said. Liu, who stepped down as the CEO of LCY in June, continues to advise the group as a consultant.
Lee told Bloomberg that the company’s pace of growth has been more cautious under KKR’s influence and Liu’s management style. Now, he plans to take a more aggressive approach to scaling LCYs semiconductor materials business.
Comparing LCY’s plans with TSMC’s push to expand its U.S. manufacturing footprint, Lee said he intends to move even faster in some areas.
"I’ll push expansion a little faster than TSMC does," he said, referencing TSMC’s broader $265 billion expansion effort, including $100 billion in U.S. spending announced last week.
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