Mar 14, 2012
Hitachi Chemical Co., Ltd.

Hong Kong Subsidiary to Commence Production of Copper-clad Laminates for Printed Wiring Boards for Semiconductor Packages

-Facility to be Strengthened with an Investment of Approximately One Billion yen with the Provision of Samples to Commence in July this Year-

Copper-clad laminates for printed wiring boards manufacturer, Hitachi Chemical Electronic Materials (Hong Kong) Limited(hereinafter referred to as "HCEM(HK)"), a subsidiary of Hitachi Chemical Co., Ltd. (Head Office: Tokyo; President and CEO: Kazuyuki Tanaka; Capital: 15.5 billion yen; hereinafter referred to as "Hitachi Chemical") is to invest approximately one billion yen in strengthening its facilities in order to manufacture copper-clad laminates for printed wiring boards for semiconductor packages. Provision of samples will commence in July this year, and a mass volume production system will be developed.

Demand for copper-clad laminates for printed wiring boards is forecast to increase in the mid-range market; vehicle parts, mobile phones and servers, in addition to the high-end market; PC semiconductor packages, high-speed servers and mobile phone base stations. Predominately in response to increasing demand from the mid-range market, HCEM(HK) began production of Hitachi Chemical products after becoming a consolidated subsidiary of Hitachi Chemical when the organization increased its capital investment in HCEM(HK) to 75% in November last year. High-end market products, predominately products for semiconductor packages, have been manufactured at Hitachi Chemical's Shimodate Works and Shimodate Works (Goshomiya) both located in Chikusei City, Ibaraki Prefecture, with production capacity increased as demand requires. However, since the Great East Japan Earthquake, there have been increasing customer requests for decentralization of production locations.

In response, HCEM(HK) will now invest approximately one billion yen in strengthening its facilities to manufacture copper-clad laminates for printed wiring boards for semiconductor packages, which are characterized by their low-thermal expansion properties and high elasticity. Provision of samples will commence in July this year, and a mass volume production system will be developed. This investment will enable overseas production of products for semiconductor packages, which also ensures adherence to the Business Continuity Plan. The investment will also secure a production structure of products for semiconductor packages, of which high quality is always expected, enabling a synergy that improves the efficiency and quality of products for the mid-range market. Additionally, this investment will also enable swift product supply to China, the world's largest printed wiring boards market and where many of the manufacturing facilities of Hitachi Chemical customers are located. Therefore, the customer service system will be further strengthened and the expansion of the sales base will be accelerated in the steadily growing Chinese market.

Moving forward, the establishment of production bases of copper-clad laminates for printed wiring boards in Japan, Hong Kong and China (Guangzhou), will enable Hitachi Chemical Group to pursue production efficiency improvements and supply high quality products through the development of an optimal production system.

< Outline of HCEM(HK) >
Company Name: Hitachi Chemical Electronic Materials (Hong Kong) Limited
Location: Tai Po Industrial Estate, Tai Po, New Territories, Hong Kong
Representative: Misao Nakagawa, Chairman
Description of Business: Manufacturing and marketing of copper-clad laminates for printed wiring boards
Capital: 13,000 HK$
Establishment: 1985 (Hitachi Chemical's subsidiary since November 2011)
Shareholder Structure: 75% financed by Hitachi Chemical
Number of Employees: 188
The Amount of Investment: Approximately one billion yen

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