Showa Denko Enjoys Favorable Production of Electronic Mateirlas

Showa Denko currently keeps full production of electronic materials. The firm continues full operation of productive lines for compound semiconductor which is used mainly for light emitting diode (LED) at Chichibu plant in Saitama Prefecture, Japan since April 2006. The firm also enjoys full production of rare earth magnet alloy at Chinese joint venture established in 2002, Baotou Showa Rare Earth Hi-tech New Material, as well as active commercial production, research and development for rare earth magnet alloy at Chichibu. The production maintains the high level thanks to active demand for electronic materials.Chichibu plant produces compound semiconductor mainly epitaxial wafer based on gallium phosphide or gallium arsenide substrate. Epitaxial wafer represents most of gallium phosphide shipment from Chichibu plant while gallium arsenide is mainly processed into semiconductor chip with less than 0.3 millimeters square.Chichibu plant also produces rare earth magnet alloy at 4,000 tonnes of annual output capacity such for neodymium iron boron magnet and samarium cobalt magnet. Baotou Showa Rare Earth Hi-tech New Material is in full operation at 1,000 tonnes of output capacity to meet active demand, which Showa Denko established with Chinese local enterprises in China, the largest supplier country of rare earths in the world.Showa Denko will start operation of its second JV to produce rare earth magnet alloy in China, Ganzhou Zhaori Rare Earth New Materials, in the second half of 2007 with 2,000 tonnes of annual output capacity.