Sumitomo Chemical to Build a New High-Purity Semiconductor Process Chemical Manufacturing Plant in the U.S.Accelerating Semiconductor Materials Business Development in the U.S. Market
Sep. 1, 2022
Sumitomo Chemical has decided to establish a new company in Texas in the U.S. through Dongwoo Fine-Chem Co., Ltd., a wholly-owned subsidiary located in South Korea, and to build at the company a high-purity semiconductor process chemical manufacturing plant. The new company, Sumika Semiconductor Materials Texas Inc., will serve as a strategic base in the U.S. market for the Sumitomo Chemical Group’s semiconductor process chemicals business and work to expand this business in the U.S. by effectively capturing robust demand. The new plant is due to commence operations in fiscal 2024.
Sumitomo Chemical started production of high-purity chemicals used for precision cleaning in the semiconductor manufacturing process in 1978 at its Chiba Works in Japan, and since then has built its supply systems in Asian countries to meet customer demand. The Company has been highly rated by semiconductor manufacturers in and outside Japan for the technological strengths it has demonstrated by leveraging its ultra-high purification technology that reduces impurities down to a parts-per-trillion level and its quality assurance system based on micro-impurity analysis technology, as well as for its agility in increasing supply capacity in response to market demand.
Growth in demand for semiconductors is expected to continue, driven by market uptake of 5G-compatible devices and progress in the development of advanced technologies, such as AI and autonomous driving. Against this backdrop, governments of various countries have launched industrial policies to enhance semiconductor production capacity, and in the U.S., major semiconductor manufacturers have, one after another, announced plans to build new semiconductor plants. To effectively capture this strong U.S. demand for semiconductor materials, Sumitomo Chemical has decided to construct the new high-purity semiconductor process chemical plant. The Company has a subsidiary in Arizona, the U.S., Sumitomo Chemical Advanced Technologies LLC, through which it operates a compound semiconductor materials business. With this new plant coming into operation, the Sumitomo Chemical Group will have its bases in both Texas and Arizona, the two states where the U.S. semiconductor industry is concentrated, and will further accelerate the development of its semiconductor materials business in the U.S.
Sumitomo Chemical has identified contribution to ICT innovation as one of the material issues to be addressed as management priorities. The Company will strive to contribute to the growth of the semiconductor industry, which is indispensable for achieving a smart society and smart mobility, by expanding its global production capacity for semiconductor process chemicals and providing a stable supply of high-quality products.
Overview of the New Company
Sumika Semiconductor Materials Texas Inc.
|Headquarters||Texas, the U.S.|
Akira Nakanishi, Representative Director & Chairman of the BoardDongjoo Yun, Representative Director & President
|Scope of business||Manufacturing and sales of semiconductor process chemicals, etc.|
|Capital||USD 130 million|
|Date of establishment||September 2022 (scheduled)|
Sumitomo Chemical Co., Ltd.
Corporate Communications Dept.