News Releases

Showa Denko Decides to Establish Second Factory in Shanghai to Produce High-Purity Gases for Electronics

Showa Denko K.K.
January 8, 2020

Showa Denko K.K. (SDK) (TOKYO: 4004) has decided to establish its subsidiary’s second factory in Shanghai to produce high-purity gases for electronics. Shanghai Showa Electronics Materials Co., Ltd. (SSE), which is SDK’s wholly owned subsidiary producing high-purity gases for electronics, acquired a right to use a site for its second factory adjacent to the First Factory for 50 years, and will establish facilities to produce high-purity nitrous oxide (N2O) and high-purity octafluorocyclobutane (C4F8) gases and a dangerous goods warehouse to stock high-pressure gases. The second factory will start its operations in the second half of 2021.

High-purity N2O is a specialty gas used to form oxidized films on surfaces of integrated circuits which will compose semiconductor chips or display panels. High-purity C4F8 is a specialty gas used for etching of those oxidized films and other micromachining processes. Due to progress in information communication technologies including 5G mobile communication technology and Chinese government’s policy to nurture high-technology industry, the market in China for semiconductor chips and display panels (e.g., organic electroluminescent display panels for TVs, etc.) is expected to expand.

The Showa Denko Group is now producing high-purity N2O at Kawasaki Plant and a site of a group company in the Republic of Korea, and high-purity C4F8 at Kawasaki Plant and SSE’s First Factory in Shanghai. In order to strengthen its adaptability to changes in needs of the market, including the need for stable supply of high-purity gases, the Group now aims to promote “local consumption of locally produced high-purity gases” further. Moreover, in the present situation where the Chinese government is strengthening regulations on chemicals, establishment and expansion of the Showa Denko Group’s dangerous goods warehouse in Shanghai to stock high-pressure gases will enable the Group to strengthen its supply chain and competitiveness. By combining its production and quality-control technologies and getting best supply system ready for customers, the Showa Denko Group will further strengthen its high-purity gas business.

Outline of SSE’s Second Factory

Exterior view of the First Factory of
Shanghai Showa Electronics Materials Co., Ltd.

Area of the factory
About 10,000m2
Facilities to be constructed
High-purity N2O plant Annual production capacity: 1,000t
High-purity C4F8 plant Annual production capacity: 600t
Dangerous goods warehouse to store highly pressurized gases
Start of operations
In the second half of 2021

In addition, since the market for semiconductor chips in Taiwan is also expected to expand, SDK’s subsidiary “Taiwan Showa Chemicals Manufacturing Co., Ltd.” will establish a new facility to produce high-purity C4F8 with annual production capacity of 150t. The start-up of operations of the new facility is scheduled to be in the spring of 2020. Total amount of investment to establish new facilities in Shanghai and Taiwan is about 3 billion yen.

The Showa Denko Group’s Vision is to make itself a “KOSEIHA Company” (a group of KOSEIHA Businesses that can maintain profitability and stability at high levels over a long period), and the Group’s high-purity gas business is already a KOSEIHA business. We will further expand the lineup of high-purity gases we provide and strengthen our supply system, thereby responding to the expansion of the global market for electronics materials and further strengthening competitiveness and profitability of our high-purity gas business.

For more information, contact:
Public Relations Office (Phone: 81-3-5470-3235)

Top of page