Shin-Etsu announces major expansion of its 300mm wafer production capacity
Construction to expand facilities has already started. This expansion will enable Shin-Etsu to establish a production system, which will promptly meet the rapidly growing needs of its customers worldwide.
Shin-Etsu Chemical had been working to implement its plan to expand its Groups total production capacity of 300mm silicon wafer to 500,000 a month by the fall of 2006; however, due to the continuation of robust demand, this project was completed earlier than planned and its Groups total production capacity has been currently increased to 700,000 a month.
Furthermore since semiconductor customers are expected to newly construct or expand their production lines that make use of 300mm wafers, Shin-Etsu has now decided to establish a production system of 1,000,000 wafers a month by the fall of 2007. The investment amount made for an additional capacity of 300,000 wafers will be 120 billion yen, and the accumulated amount invested in the 300mm wafer business by Shin-Etsu, including that of this investment, is expected to reach about 400 billion yen, all the amount of which is covered by Shin-Etsus' own funds. As of the end of August 2006, Shin-Etsu Chemical had cash reserves of about 530 billion yen.
This latest expansion plan was decided by Shin-Etsu after taking into consideration all kinds of risks, including natural disasters such as earthquakes, damage caused by winds and floods and other such risks. The expansion plan will be carried out at Shin-Etsus' Handotai Shirakawa Plant, which has been playing a leading role in high-precision wafer processing; Shin-Etsu Handotai America (SEH America); and Mimasu Semiconductor Industry Co., Ltd., which became a Shin-Etsu Group company this year. In addition, Shin-Etsu will make a new investment in Nagano Electronics Industrial Co., Ltd., another Shin-Etsu Group company. These investments will lead to the strengthening of Shin-Etsus' strategy of making use of strong multiple global production bases that can assure stable supply to customers. ??Furthermore, in addition to the planned expansions at the Shin-Etsu Handotai Shirakawa Plant in Japan and at Shin-Etsu Handotai U.S. facility in Vancouver, Washington, to disperse risk, it was decided to produce single crystal ingots at Shin-Etsu Handotais' Takefu Plant (in Fukui Prefecture, Japan). By means of these multiple production bases, an early increase of production capacity will become possible that will promptly meet changing market needs.
