On August 12, Taiwanese solder and semiconductor materials manufacturer Redsun Metal Industrial Co., Ltd. abruptly ceased operations after 51 years in business, citing financial distress and tightened bank lending. The closure has sent shockwaves through the electronics supply chain.

Redsun had warned as early as May that rising global transport costs, geopolitical tensions, and U.S. tariff policies under former President Donald Trump were straining its operations. The company noted that tariffs significantly raised the cost of tin powder exports from mainland China, further squeezing margins. Redsun cautioned that raw material and consumer goods prices could rise by as much as 20% under these conditions.

Founded in 1974 with a registered capital of NT$250 million, Redsun was one of Taiwan's leading solder and semiconductor materials suppliers. Its product portfolio included leaded and lead-free solder bars, solder paste, solder balls, flux, special alloys, epoxy resins for packaging, and high-purity metals. The company operated its main facility in Bade, Taoyuan, and maintained a global footprint across the U.S., Europe, Japan, mainland China, and Southeast Asia.

In its shutdown announcement, Redsun stated that all debt-related matters will be handled through court-led restructuring proceedings.

The company's sudden exit is already reshaping the competitive landscape. Market analysts expect rival Sheng Mao to benefit directly, particularly from rising demand for its thermal solder paste. Shares of Sheng Mao briefly surged to NT$97.2 on August 15, the highest level since November 2021, before closing at NT$88.2 amid profit-taking.

Industry observers note that Redsun's collapse highlights the vulnerability of legacy semiconductor materials suppliers to geopolitical and trade policy shifts, as well as ongoing supply chain disruptions.