Shin-Etsu announces major expansion of its 300mm silicon wafer production capacity
1,000,000 monthly production system targeted to be in operation by the fall of 2007
Shin-Etsu Chemical Co., Ltd. has announced a new plan to expand its monthly production capacity of 300mm silicon wafers to 1,000,000 by the fall of 2007. Construction to expand facilities has already started. This expansion shall enable Shin-Etsu to establish a production system, which will promptly meet the rapidly growing its customers' demand worldwide.
Shin-Etsu Chemical had been working to implement its plan to expand its Group's total production capacity of 300mm silicon wafer to 500,000/month by the fall of 2006; however, due to the continuation of robust demand, this project was completed earlier than planned and its Group's total production capacity has been currently increased to 700,000/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/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 amount of which is covered by Shin-Etsu's own funds. As of the end of August 2006, Shin-Etsu Chemical had cash reserves of about 530 billion yen.
Furthermore, in addition to the planned expansions at the Shin-Etsu Handotai's Shirakawa Plant in Japan and at Shin-Etsu Handotai America's facilities in Vancouver, Washington, to disperse risk, it was decided to produce single crystal ingots at Shin-Etsu Handotai's 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.
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