Showa Denko Decides Additional HD Capacity Expansion in Singapore

Showa Denko announced on Wednesday the firm introduces a new productive line for hard disk at the 100% subsidiary in Singapore, Showa Denko HD Singapore (SHDS). Showa Denko invests approximately 5.5 billion yen for the capacity expansion. The new line will complete in June 2011 with output capacity of 2 million disks per month. Showa Denko group’s hard disk output capacity is presently 22 million disks per month. The firm has already announced capacity expansion by 3 million disks at SHDS. As total, SHDS capacity will increase by 5 million disks and Showa Denko group’s capacity will reach 27 million disks.

Supply and demand balance of hard disk drive is currently in adjustment phase. But in medium term, the demand is expected to grow by 10% per year, applied to telecommunication appliances, personal computers, servers and digital appliances.

Showa Denko had decided capacity expansion at SHDS by 3 million disks per month to follow the demand growth. In April 2011, Showa Denko group’s total capacity is expected to reach 25 million disks per month including 4 productive sites in Japan, Taiwan and Singapore. The firm judged additional expansion is necessary.