Showa Denko Establishes Joint Corporation In Sichuan, China To Manufacture High-Purity Gas For Electronics

Aiming to Cope with the Increase of Demand in China

TOKYO, Nov 6, 2020 - (JCN Newswire) - Showa Denko K.K. (SDK; TSE:4004) has established Chengdu Kemeite Showa Electronic Materials Co., Ltd. in Chengdu, China, jointly with Chengdu Kemeite Special Gas Co., Ltd. of China, aiming to strengthen SDK's business to produce and sell high-purity gases for electronics. The new company will start its operation in January 2021, and it will mainly be in charge of the implementation of final process in the manufacturing process of high-purity FC-14 gas (tetrafluoromethane: CF4) which is used in the process to manufacture semiconductors.

CF4 is one of major products of SDK's electronic gas business. CF4 is the primary and basic etching gas among high-purity gases for electronics, and has been mass-produced and used for more than 40 years. The demand for CF4 is expected to increase steadily because it is not only easy to handle but also suitable for micromachining of semiconductor chips which is improving further, and the amount of CF4 used in the process to produce leading-edge electronic devices including organic electroluminescent displays has been increasing.

Through execution of this buildup policy, SDK's CF4 business will have a system to produce CF4 with two production bases, namely, production facilities in SDK's Kawasaki Plant which is in operation and those in the new company. The Showa Denko Group will really strengthen stability of its system to supply CF4 for East Asian market, and expand its strategic business to provide materials for production process of semiconductors further.

[Outline of the new joint corporation]

Firm name: Chengdu Kemeite Showa Electronic Materials Co., Ltd.

Head office: Pengzhou, Chengdu, Sichuan Province, the People's Republic of China

Establishment: October 30, 2020

Capital: 4 million yuan

Shareholders: Showa Denko K.K. (40%); Chengdu Kemeite Special Gas Co., Ltd. (60%)

Scope of business: Production and sale of high-purity CF4

[Outline of Chengdu Kemeite Special Gas Co., Ltd.]

Firm name: Chengdu Kemeite Special Gas Co., Ltd.

Head office: Pengzhou, Chengdu, Sichuan Province, the People's Republic of China

Scope of business: Production and sale of sulfur hexafluoride (SF6) for industrial use, high-purity CF4, etc.

Number of employees: about 200

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY) is a major manufacturer of chemical products serving from heavy industry to computers and electronics. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory/graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high bright LEDs, and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit www.sdk.co.jp/english/.

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