Naidun-tech: Scaling Semiconductor Innovation with TEL
– A Journey from Lab to Industry

The origins of Naidun-tech Co., Ltd. did not begin in a boardroom, but in the laboratory of Professor Ting-Chang Changat National Sun Yat-sen University. Professor Chang had spent years advancing semiconductor defect passivation technologies and had originally intended to remain focused on academic research. That direction shifted when two of his students, Daniel Chen and Kyle Li, approached him with a different vision.

They encouraged him to take the technology beyond the university and into real-world applications. What began as a laboratory idea soon found its moment. Supported by Taiwan’s government-led Startup Value Creation Program (SVCP), which promotes the commercialization of innovative technologies, Naidun-tech’s supercritical fluid (SCF) technology, designed to enhance the reliability of electronic components, found fertile ground in Taiwan’s semiconductor ecosystem and began to take root.

This content is a reproduction of an articlepublished by the Hsinchu Science Park Bureau (HSPB) in Taiwan, with permission.

The First Challenge:
A Funding Winter Without a Lead Investor

The transition from academic research to commercialization proved far more demanding than expected. In its early days, Naidun-tech was funded entirely out of pocket by its two founders. The company consisted of just Daniel and Kyle. For a startup developing capital-intensive semiconductor equipment, it was a venture that required committing everything.

Daniel recalled that the greatest challenge was not the technology, but securing funding. With long development cycles and slow paths to revenue, semiconductor equipment startups often struggle to attract venture capital. For more than a year, the team met with numerous investors. Feedback was consistently positive, yet they remained stuck in a familiar impasse, as no one was willing to take the lead. “No one wanted to take on the risk of setting the initial valuation,” Daniel said. This period tested their endurance and forced them to learn how to operate with extremely limited resources.

A Turning Point in Tokyo:
Trust Earned Through Technology

The turning point came at an exhibition in Tokyo, where the Naidun-tech team encountered TEL Venture Capital (TEL VC), the corporate venture capital arm of Tokyo Electron (TEL). At the time, Naidun-tech had neither scale nor a fully market-validated product. However, TEL VC recognized the potential of the technology and showed strong interest. After gaining a deeper understanding of its capabilities, TEL VC made a decisive move by extending financial support to the company.

Daniel described TEL’s support as more than just a timely boost for operations. It was also a powerful vote of confidence. The convertible loan enabled Naidun-tech to begin building scale and recruiting talent. Yet a second challenge soon emerged.

In Taiwan, major semiconductor companies exert a strong pull on engineering talent, making it difficult for startups to compete in terms of compensation. In response, Naidun-tech turned to research institutions, attracting engineers driven by a passion for bringing new technologies into real-world applications. Daniel likened these early team members to trusted companions willing to step onto the battlefield together. At a time when the company was still finding its footing, they chose to leave stable careers and join the startup, a commitment the founders remain deeply grateful for.

The journey, however, remained dynamic. Naidun-tech initially focused on the more accessible 6-inch and 8-inch wafer markets. Following shifts in demand after the pandemic, customers scaled back expansion plans, prompting the company to reassess its direction. At this stage, TEL’s role evolved beyond that of an investor to that of a strategic partner. As a leading global semiconductor equipment provider with extensive experience serving major manufacturers, TEL brought valuable market insight and industry perspective.

With this support, Naidun-tech made a decisive shift toward the 12-inch wafer platform, the industry standard for advanced semiconductor manufacturing. For a young company, stepping up to this level presented significant challenges. With TEL’s integrated support across hardware, software, and system-level resources, Naidun-tech was able to shorten its development cycle and reduce the cost of trial and error. This transition marked a critical upgrade, positioning the company beyond a local startup and establishing it as a developer with competitive global potential.

Cultural Integration:
Unconventional Japanese Company Meets a Taiwanese Startup

Following its integration into the TEL group, questions naturally arose about whether cultural differences might create friction between the two organizations. However, Allan Chen, Vice President of TEL Taiwan, described TEL as “far from a typical Japanese company,” noting the absence of rigid hierarchy and the level of formality often associated with traditional corporate structures

Daniel also highlighted the strong sense of professional respect extended by TEL. In areas involving core technology, Naidun-tech has been given full autonomy to operate and innovate. At the same time, TEL provides comprehensive support in administrative, regulatory, and employee-related matters, creating a stable and well-supported working environment.

This approach ensures that expertise remains in the hands of specialists, allowing the R&D team to focus fully on core development without distraction. Daniel added that TEL’s vision of "a company filled with dreams and vitality that contributes to technological innovation in semiconductors"” strongly resonated with the team and was one of the key reasons behind their decision to join the group.

Ecosystem Support
A Startup’s First Mark of Credibility

Throughout its growth, the HSPB and the Young Entrepreneur’s Studio have played a pivotal role. In the early stages, when every expense had to be carefully managed, the office space provided not only offered cost advantages but also held strategic value in terms of location. Daniel noted that the site is within a 10 to 20-minute drive of key customers, significantly improving the ability to perform technical demonstrations and raise customer engagement. More importantly, it served as a mark of credibility. Being based in a facility recognized by the HSPB provided an implicit form of validation. For a young startup, this helped demonstrate to customers and investors that the company was more than just an idea on paper. Within this supportive and collaborative environment, Naidun-tech built the foundation needed to grow beyond Hsinchu and step onto the global stage of semiconductor innovation.