Showa Denko’s Subsidiary Establishes a Branch in Xi’an, China and Starts to Sell and Distribute High-purity Gases for Electronics

December 09, 2020

Showa Denko K.K.

Shanghai Showa Chemicals Co., Ltd. (SSC), a Chinese subsidiary of Showa Denko K.K. (SDK) (TOKYO: 4004), established a branch in Xi’an, Shaanxi Province, China, and started operation of the branch in December 2020, aiming to strengthen its business to sell and distribute high-purity gases for electronics in China. The new branch is SSC’s third business base in China to sell and distribute high-purity gases for electronics, following those in Shanghai and Wuhan.

The demand for semiconductors has been increasing due to the spread of the 5th generation mobile communication systems (5G) and cloud computing services, and increase in the amount of communicated data resulting from the rise in distribution of movie contents. The Chinese market for semiconductors has been expanding very rapidly due to the Chinese government’s policy to nurture the electronics industry. Also SDK’s high-purity gas business in China has been growing very rapidly because of the rapid expansion of the Chinese market.

SDK has been taking positive measures to expand its high-purity gas business in China, including establishment of Wuhan Branch (a base to sell and distribute high-purity gases), expansion of the premises of Shanghai Plant for establishment of additional production facilities and hazardous chemicals warehouses, and establishment of a joint corporation in Chengdu. This time, we established the new branch in Xi’an as a base to sell and distribute high-purity gases, aiming to upgrade our customer service and strengthen our system that ensures stable supply of high-purity gases.

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 positions its business to produce and sell high-purity gases for electronics as a KOSEIHA Business. We will continue to make “thorough customer orientation” and “local consumption of locally produced products” our basic policies, aiming to maximize customer experience. And we will expand our business to produce and sell high-purity gases for electronics by responding positively to the lasting vigorous demand for high-purity gases.

[Outline of the new branch]