From tableware to reclaimed wafers
In its earliest incarnation Kinik was the Jin Ming Kiln Factory, which was once the leading producer of tableware in Yingge. But its owner Lin Chang-shou discovered that because the technical barriers to entry in ceramics production were so low, staff merely needed to work hard at mastering the techniques before they could leave to start their own factories. In 1953 Lin and his son-in-law Pai Yung-chuan switched to manufacturing grinding wheels, an industry that had higher barriers to entry. They changed the firm’s name to China Grinding Wheel in 1964. With Taiwan’s rapid shift from light to heavy industry, companies whose processes involved cutting and grinding needed abrasive wheels, and China Grinding Wheel could make all manner of customized products for its clients. Producing several thousand tons of cutting and grinding wheels per year, it was the top manufacturer of them in Taiwan.
When revenues stagnated, the company started looking for opportunities to transform. Kinik’s second-generation leader, Frank S. Lin, elevated the company’s products from traditional grinding wheels to high-precision diamond wheels. But he remained concerned about the company’s prospects, so in 1997 the firm commissioned the Industrial Technology Research Institute to develop a method to “reclaim” (refurbish) the silicon wafers used for process control tests in semiconductor production, on condition that the method make use of abrasive wheel technology.
Lin then dropped NT$100 million to build a new factory in Zhubei for a spin-off firm—Kinik Precision Grinding—led by Thomas Hsieh, who had been heading the company’s R&D team. It started to produce reclaimed wafers.
“I’ll always remember that in March of 2000 we got our first order for reclaimed wafers from TSMC—thus showing that our process could gain market acceptance,” says Hsieh. He continues, sotto voce: “Back then Kinik had annual revenues of only about NT$100 million. If we had failed, the company might have gone under.”
Fortunately, that “if” didn’t come to pass. Taiwan’s semiconductor manufacturers had previously had to send their wafers to Japan for refurbishing. Now able to get this done in Taiwan, they saved a lot on shipping. It was a win‡win, benefitting both the semiconductor industry, for which time is money, and Kinik, which was very much looking to expand its range of products and expertise. As the fabs developed and produced eight- and 12-inch wafers, Kinik opened different lines of production and pushed different sizes of reclaimed wafers. Its consistent quality won favor with domestic firms such as United Microelectronics and Powerchip Semiconductor, as well as companies in the United States such as Intel and Micron Technology. Kinik rose to become a global leader in the field.
Grinding wheels as small as coins are handled by exacting and meticulous female workers.