Tanaka Denshi Kogyo Starts Cu Bonding Wire Production in Taiwan

Tanaka Holdings announced on Tuesday Tanaka Denshi Kogyo, one of the main operating companies, starts copper bonding wire production in Taiwan. In Taiwan, copper bonding wire consumption is sharply increasing. Tanaka Denshi Kogyo plans to supply copper bonding wire from the local factory to semiconductor subcontractors in Taiwan. The firm eyes shipment at 100 million meters per month in 2014.

Tanaka Denshi Kogyo is the world largest supplier of bonding wire. The firm has already manufactured copper bonding wire at three factories in Japan, Singapore and China. As the fourth productive site, the firm establishes a new subsidiary in Taoyuan, Taiwan with capital fund at NT$ 285 million (approximately 730 million yen). The production starts on February 1.

Tanaka Denshi Kogyo had not operated a local plant in Taiwan but provided sales and technical support services. The firm had sold bonding wire manufactured in Japan and Singapore to Taiwanese customers. However, Taiwanese users are rapidly shifting to use copper bonding wire instead of conventional gold bonding wire. Tanaka Denshi Kogyo decided to open a local factory to expand the local sales.

Bonding wire connects IC chips and external electrodes. The main material has been gold but currently shifted to copper since gold price maintains expensive. Tanaka Denshi Kogyo estimates global bonding wire production currently totals 1 billion meters per month and copper bonding wire accounts for 20% in total production. Copper bonding wire might represent 40% in 2013, suggested the company.