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SDK to Expand HD Capacity in Singapore by 1 Mil. Disks a Month

February 26, 2003

Showa Denko K.K. (SDK) has decided to expand the hard disk media production capacity at its subsidiary Showa Denko HD Singapore Pte. Ltd. (SHDS) by one million disks a month. The new production line, together with a new clean room, will start up in October 2003. After the expansion, SHDS’s HD production capacity will increase from 2.1 to 3.1 million disks a month.

Demand for hard disks is increasing as the world production of hard disk drives (HDDs) now exceeds 200 million units a year for use not only in PCs but also in car navigation systems, audio-video equipment, and DVD recorders. Since the D/D ratio (number of HDs installed in one HDD) is now stabilized, demand for HDs is expected to further increase.

SHDS, a new company established following SDK’s acquisition of Mitsubishi Chemical Corporation’s hard disk media business, started production last month and has been operating smoothly, selling HDs in line with the sales plan. However, SHDS needs additional capacity because demand for its products in the latter half of the year will exceed its current production capacity. SHDS will also make sure to meet growing demand for glass-substrate HDs.

SDK is producing HDs in Ichihara, Japan, as well. Furthermore, SDK produces aluminum substrates for hard disks in Malaysia and Oyama, Japan. After the expansion in Singapore, SDK’s total hard disk media production capacity will amount to 6.3 million disks a month (3.2 million in Ichihara and 3.1 million in Singapore).

As one of the largest vendors of hard disk media in the world, SDK aims to fulfill customers’ increasing need for aluminum- and glass-substrate HDs by further strengthening its technical advantages and promoting miniaturization of product.