Japan Equipment Makers May Shift Al Based Parts Procurement to Overseas

Japanese domestic demand for aluminium plate is expected to decrease from manufacturing equipment for semiconductors, liquid crystal panels and solar cells. Japanese equipment makers are considering procurement and manufacture of main parts, such as vacuum chambers, at overseas, though they have procured and manufactured the parts in Japan so far. The background is the recent trend of stronger yen against other currencies. Aluminium plate orders may decrease from Japanese equipment makers due to this trend as well as the actual economy downturn.

After the financial crisis emerged, US dollar weakened by more than 10% against Japanese yen while Euro declined by about 20% and Korean won by more than 30%. As a result, Japanese equipment makers’ breakeven point lowered when they import the equipment and the parts from overseas.

A large-size vacuum chamber for liquid crystal panel manufacturing equipment is 8-9 tonnes processed from 2.5-meter width by 2.2-meter length aluminium plate for 8th generation size panels. Ulvac, Japanese largest supplier of liquid crystal panel manufacturing equipment, plans to procure vacuum chambers at its productive sites in Korea and Taiwan, though the firm has procured and manufactured the chambers in Japan and exported them to Korean and Taiwanese plants.

Domestic aluminium plate demand is also weakening from solar cell manufacturing equipment makers, although the demand kept increasing since early 2008. A Japanese large dealer source said the order receipt became fewer since the end of 2008. The demand may be impacted by the underlying trend of stronger yen.