Showa Denko Materials' Taiwan unit to boost chip material production
TAIPEI, NNA - Showa Denko Materials Co. will increase production capacity for semiconductor materials at its subsidiary in Taiwan to meet strong demand for the products, the Tokyo-based manufacturer said Tuesday.
The subsidiary, Showa Denko Semiconductor Materials (Taiwan) Co., will boost its production capacity for chemical mechanical planarization, or CMP, slurry, a polishing material for semiconductor devices, and prepreg, one of the main materials used in multilayer printed circuit boards.
The Taiwan unit will also begin manufacturing photosensitive solder resist, which the parent company has so far produced only in Japan.
Showa Denko Materials, a wholly owned subsidiary of Japanese chemical giant Showa Denko K.K., said it will invest a total of about 20 billion yen (US$190 million) to expand production capacity at the Taiwan subsidiary and construct a new factory in South Korea. Amounts for each investment were not disclosed.
Showa Denko Materials foresees strong demand for its products as high growth is expected for the semiconductor market in line with the launch of the 5G wireless network as well as innovations in artificial intelligence and auto technologies.
The Taiwan subsidiary will begin gradually increasing its CMP slurry production capacity from January 2022 and start mass production of prepreg and photosensitive solder resist in January 2023.
As a result, Showa Denko Materials' overall production capacity for CMP slurry will rise by 30 percent and that of prepreg will double, compared with the 2019 level.
Showa Denko Materials established Showa Denko Semiconductor Materials (Taiwan) in Tainan, southern Taiwan, in 2012 as a wholly owned subsidiary with capital of NT$702.8 million (US$25 million). (NNA/Kyodo)