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  4. Daikin Malaysia Establishes Joint Venture for Large-Sized Commercial HVAC in Taiwan and Commences Operations

Press Releases

22 January 2025

  • Corporate/Financial Corporate/Financial

Daikin Malaysia Establishes Joint Venture for Large-Sized Commercial HVAC in Taiwan and Commences Operations


Daikin Malaysia Sdn. Bhd., a wholly owned subsidiary of Daikin Industries, Ltd. that coordinates the large-sized commercial HVAC equipment business in Southeast Asia and Oceania, has established a joint venture and commenced operations with Hotai Development Co., Ltd., its Taiwanese distributor, and LEADING Electric & Machinery Co., Ltd., a Taiwanese manufacturer of industrial HVAC equipment. The new company will manufacture air handling units (AHUs) for Taiwan. To commemorate operations, an opening ceremony was held on January 21st at the production facilities in Changhua County, Taiwan.


As a manufacturer of industrial HVAC equipment, LEADING has been developing, manufacturing, and selling chillers and AHUs since its founding in 1981. With an impressive track record for delivering solutions in the semiconductor market, the company is one of Taiwan's top manufacturers. It boasts a highly competitive product lineup, expertise in meeting advanced specifications, expertise for in-house production of component parts, and a solid maintenance service and support system.

In cooperation with Hotai Development, the Daikin Group has expanded HVAC equipment sales in Taiwan for products ranging from residential to commercial use air conditioners, including retail store and office building installations. In 2017, it began full-fledged sales of large-sized commercial HVAC equipment in Taiwan and has also accelerated sales expansion for large-scale commercial facilities.

In recent years, progress in IT development and digitalization has pervaded daily life, causing demand for the semiconductor products supporting them to rise sharply. Similarly, the market is expected to surge due to the diversification of applications and improved performance through the adoption of new technologies. Particularly in Taiwan, where manufacturers with a significant share in the global semiconductor foundry market are concentrated, demand for HVAC equipment and services with semiconductor applications is expected to continue growing.

The establishment of this joint venture seeks to leverage the business foundation of the Daikin Group in the Taiwanese market together with its core technologies and production know-how developed globally. It aims to integrate LEADING’s strengths with the AHU product and support capabilities developed for semiconductor applications, enabling them to manufacture and supply AHUs that meet the demanding needs of the semiconductor market in Taiwan. In this way, the joint venture will work to provide total solutions that combine Daikin's chillers with highly competitive AHUs.

In the future, Daikin aims to transfer its acquired knowledge on applications for the semiconductor factory market to other regions and expand business to other applications, such as the data center market which also requires high-level specifications, while addressing such issues as energy savings and decarbonization in a variety of fields.

Summary of New Joint Venture

Company Name Daikin (Taiwan) Air Conditioning Systems Co., Ltd.
Headquarters Changhua County, Taiwan
Establishment August 2024
Capital 800 million yen 
Shareholding Ratio: Daikin Malaysia 51%, Hotai Development 34%, and LEADING 15%
Business activities Manufacturing of air handling units

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