February 15, 2006
Fuji Electric Device Technology Co., Ltd.
Fuji Electric Device Technology to Ramp Up Production
Fuji Electric Device Technology Co., Ltd. (President: Akira Takai) announced today that it has decided to boost its hard-disks media output to 13 million a month, approximately doubling its current capacity of 7 million as well as to add new production lines dedicated to perpendicular magnetic recording devices, in which market growth is expected.
As the market for personal computers and digital consumer electronics expands, the need for more mobile-enabled and larger-capacity HDD is increasing. This has resulted in rapid rise in demand for glass media, capable of high-density storage. To keep up with this active demand for hard-disk media, Fuji Electric Device Technology will raise its capital expenditure for reinforcement of production capacity in both Yamanashi and Malaysia plants. In preparation for the future growth of hard-disk media demand, Fuji Electric Malaysia will expand its plant by acquiring a land adjacent to the current site. The total investment will amount to 40 billion yen.
1. Overview of the Capital Investment
| (1) | Investment Details |
| At Yamanashi plant of Fuji Electric Storage Device Co., Ltd. in Minami-Alps-shi, Yamanashi-ken:- The output capacity of aluminum hard-disk media will be increased by 400,000 pieces a month
- The output capacity of glass hard-disk media is scheduled to be increased by 2.4 million pieces a month in July 2006
At Fuji Electric (Malaysia) Sdn. Bhd. plant in Kulim, Malaysia:- A land of 120,000 square meter is purchased
- A facility of 24,000 square meter to be built
- The output capacity of aluminum hard-disk media is scheduled to be increased by 1.6 million pieces a month in April 2007
- The output capacity of glass hard-disk media is scheduled to be increased by 1.6 million pieces a month in April 2007
As a result of the above investment, Fuji Electric Device Technology's production capacitywill be 8 million a month for aluminum media and 5 million a month for glass media. In addition, new dedicated production lines will be added for perpendicular magnetic recording devices toward full-fledged mass production.
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| (2) | Investment Sum : 40 billion |
2. Merger of Fuji Electric Storage Device Co., Ltd.
- Amid increasingly tough market environment for HDs, Fuji Electric Device Technology decided to merge Fuji Electric Storage Device Co., Ltd, its 100 percent subsidiary, as of April 1, 2006 to build a more flexible organization for a more profitable operation. With this merger, Fuji Electric Device Technology seeks to further improve its operating efficiency through a consolidated development, manufacturing and sales organization.
3. About Fuji Electric Device Technology's HD Business
- Fuji Electric Device Technology increased the production capacity at Kedah plant in Malaysia to 7 million in February. It is expected that its consolidated sales for FY2005 will rise approximately 170% to 50 billion yen year on year.
- The investment in the production capacity announced today includes production lines for 1.8 inch glass media in addition to those for 3.5 inch aluminum media and 2.5 inch glass media. This is aimed at strengthening the volume production framework for glass media, in which its usage is extended to mobile devices.
