Showa Denko K.K. (SDK) has decided to establish its subsidiary’s second factory in Shanghai to produce high-purity gases for electronics. Shanghai Showa Electronics Materials Co., Ltd. (SSE), which is SDK’s wholly owned subsidiary producing high-purity gases for electronics, acquired a right to use a site for its second factory adjacent to the first factory for 50 years, and will establish facilities to produce high-purity nitrous oxide (N2O) and high-purity octafluorocyclobutane (C4F8) gases and a dangerous goods warehouse to stock high-pressure gases. The second factory will start its operations in the second half of 2021. The high-purity N2O plant will have a production capacity of 1,000 tonnes/year and the high-purity C4F8 plant a production capacity 600 tonnes/year.
High-purity N2O is a specialty gas used to form oxidised films on surfaces of integrated circuits which will compose semiconductor chips or display panels. High-purity C4F8 is a specialty gas used for etching of those oxidized films and other micromachining processes. Due to progress in information communication technologies including 5G mobile communication technology and Chinese government’s policy to nurture high-technology industry, the market in China for semiconductor chips and display panels (e.g., organic electroluminescent display panels for TVs, etc.) is expected to expand.
The froup is now producing high-purity N2O at Kawasaki plant and a site of a group company in South Korea, and high-purity C4F8 at Kawasaki plant and SSE’s first factory in Shanghai. In order to strengthen its adaptability to changes in needs of the market, including the need for stable supply of high-purity gases, the Group now aims to promote “local consumption of locally produced high-purity gases” further. Moreover, in the present situation where the Chinese government is strengthening regulations on chemicals, establishment and expansion of the froup’s dangerous goods warehouse in Shanghai to stock high-pressure gases will enable the group to strengthen its supply chain and competitiveness. By combining its production and quality-control technologies and getting best supply system ready for customers, the group will further strengthen its high-purity gas business.
In addition, since the market for semiconductor chips in Taiwan is also expected to expand, SDK’s subsidiary Taiwan Showa Chemicals Manufacturing Co., will establish a new facility to produce high-purity C4F8 with annual production capacity of 150 tonnes. The start-up of operations of the new facility is scheduled to be in the spring of 2020.
Total amount of investment to establish new facilities in Shanghai and Taiwan is about 3 billion yen.