Sumitomo Bakelite to boost chip encapsulant output in China
TOKYO, NNA - Sumitomo Bakelite Co. will achieve a 1.5-fold rise in production capacity of semiconductor packaging materials at its Suzhou subsidiary in China by installing new manufacturing equipment to meet growing demand.
Sumitomo said Wednesday it will invest about 2.5 billion yen ($22.8 million) to build new production facilities for encapsulation of semiconductor devices at Sumitomo Bakelite (Suzhou) Co. in Jiangsu Province.
The new investment will raise the Suzhou unit's monthly production capacity from 1,200 tons to 1,800 tons as the new production facilities start operations early next year.
The Tokyo-based firm said it may further raise its production capacity in China depending on potentially rising demand.
Sumitomo estimates that its global market share in epoxy molding compounds for semiconductor sealing is about 40 percent.
Sumitomo started chip encapsulant production in China in 1997.
The spread of COVID-19 infections has led to the strong popularity of teleworking and a surge in demand for semiconductors for personal computers and peripheral equipment as well as home appliances, Sumitomo said. (NNA/Kyodo)