Tokuyama, Dowa Launch JV for Aluminium Nitride Substrate

Tokuyama Corporation, Japanese chemical maker, and Dowa Metaltech, Dowa Group’s metal processing company, announced on Thursday they established a joint venture to produce aluminium nitride (AlN) substrates. They establish an integrated production system for AlN substrates at the JV with Tokuyama’s AlN production technology and Dowa Metaltech’s metal bonding technology for ceramic substrates. The JV targets approximately 50% share in world AlN substrate market toward 2010 and annual sales of 3 billion yen in the future through new product development.The JV, named TOKUYAMA-DOWA Power Material (shortly called TD Power), was established in Yamaguchi Prefecture, Japan in February. The capital is 250 million yen, 65% shared by Tokuyama Corp and 35% by Dowa. The JV with 45 employees produces and sells AlN substrates, whose demand is increasing for insulating and heat radiating substrates for power modules.Tokuyama Corp supplies AlN powder to TD Power. TD Power processes AlN powder into AlN substrates; manufacturing the powder into sheet shape, baking the sheets and bonding copper or aluminium plates to the baked sheets. AlN substrate market is expected to grow by 7-10% per year under growing demand for hybrid vehicles, solar and wind power generations.Tokuyama Corp is the world top producer of AlN powder and has integrated productive technologies from AlN powder to substrate. Dowa Metaltech is the top maker of metal bonded ceramic circuit boards. They expect synergies for the JV such as stable procurement and supply of AlN materials, better productivity and quality.