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SDK Completes HD Capacity Expansion in Singapore

December 1, 2003

Showa Denko K.K. (SDK) has expanded the hard disk media production capacity at its subsidiary Showa Denko HD Singapore Pte. Ltd. (SHDS) by one million disks a month to meet growing demand for hard disks for use in PCs, car navigation systems and MP3 players.

Expansion work on the five new lines was carried out from February through October. The lines are now in full operation as SHDS has obtained approvals from relevant hard disk drive manufacturers.

SHDS’s capacity has now increased to 3.1 million disks a month, involving aluminum- and glass-substrate hard disks with diameters of 2.5, 3.0 and 3.5 inches.

Except for hard disk drive manufacturers’ internal production, SDK is the sole company in the world that produces both aluminum-substrate hard disks for desktop PCs as well as glass-substrate hard disks for notebook-size PCs and car navigation systems.

SDK is producing hard disks in Ichihara, Japan, as well. After the expansion in Singapore, SDK’s total hard disk media production capacity has reached 6.3 million disks a month (3.2 million in Ichihara and 3.1 million in Singapore).

Furthermore, SDK has reached an agreement with Trace Storage Technology Corp. of Taiwan, R.O.C., under which SDK will license its 80 gigabyte hard disk manufacturing technology to Trace in early 2004 and purchase the product from Trace on a preferential basis. When Trace’s current capacity of 2 million disks a month is included, SDK will be able to supply a maximum of 8.3 million disks a month, or approximately 100 million disks a year.

SDK produces aluminum substrates for hard disks in Malaysia and Oyama, Japan.

SDK aims to continue supplying customers with the best-quality hard disks and fulfill customers’ sophisticated requirements by fully utilizing its inorganic/organic chemical technology and aluminum fabrication technology.