Hitachi Cable to Expand Lead Frame Output in Philippine

Hitachi Cable announced on Monday the firm expands the output capacity at lead frame making subsidiary, PHCP in Philippine. The firm builds new plant in the site and transfers production facilities from Hitachi Cable Precision in Yamagata to the new plant for 400 million yen. The output capacity will increase to 1.3 times in fiscal 2007 starting April 2007 from fiscal 2005. The firm tries to expand the business by meeting growing demand in Asia. The firm expects PHCP’s sales will increase by 70% to around 4 billion yen in fiscal 2007 from 2.3 billion yen in fiscal 2005. The firm’s sales will increase by around 30% to 25 billion yen for lead frame business in fiscal 2008 from 19.2 billion yen in fiscal 2005. The firm transfers production facilities from Hitachi Cable Precision to make integrated circuit lead frame with around 100 pins. PHCP produces IC lead frame with less than 54 pins. The firm tries to meet the demand when the demand of lead frame with 100 pins will increase by annual 10%. Lead frame is packaging material for semiconductor. Hitachi Cable Precision is headquarters of Hitachi Cable’s lead frame business controlling PHCP and other production firms in Malaysia and Singapore. The firm established Suzhou Hitachi Cable Precision in 2005 finishing the world supply network. The firm expects PHCP will become the lead frame making main plant after the expansion.