7 October 2011

Sumitomo Chemical investing $52m in compound semiconductor materials business

Sumitomo Chemical Co Ltd of Tokyo, Japan says that it is to expand compound semiconductor materials production facilities at its Chiba Works in Sodegaura, Chiba Prefecture, in order to strengthen the business and the stable supply of materials to customers.

With gallium arsenide (GaAs) being widely adopted for high-frequency devices used in mobile phones and other equipment due to its outstanding signal processing at high frequencies as well as low power consumption, in recent years demand has been growing rapidly for applications in antenna switches and power amplifiers in multi-function mobile phones (as typified by smartphones), says Sumitomo Chemical. The firm expects demand to continue to grow in the future, so it aims to expand production of GaAs epitaxial wafers.

Until now Sumitomo Chemical has been manufacturing GaAs epiwafers at its Chiba Works and at its US subsidiary Sumika Electronic Materials Inc of Phoenix, AZ, with production capacity expanded stepwise in the past. Given the expectations of a continued increase in demand for GaAs epiwafers, the firm has decided to double compound semiconductor materials production capacity at the Chiba Works through investing about ¥4bn (US$52.2m), with the aim of not only expanding the business but also establishing a fully secured system for stable supply.

In addition, capitalizing on its technology cultivated through the GaAs epiwafer business, Sumitomo Chemical is developing new compound semiconductor materials. Specifically, it will participate in the government-private sector joint project for next-generation power semiconductors at the Nagoya Institute of Technology, where it undertakes R&D on gallium nitride (GaN). Such next-generation power semiconductors are capable of being operated at high voltage and high temperatures, and are expected to contribute to improved performance of home electrical appliances and personal computers, as well as electric vehicles, solar cells, and equipment for wind power or geothermal power generation etc (all of which can contribute to energy saving, and are likely to show market expansion in the future).

Positioning the compound semiconductor materials business as one of the priority areas of its IT-related Chemicals Sector, Sumitomo Chemical says that it aims to enhance its existing operations through expanding production capacity as well as seeking to further expand its business by focusing efforts on developing new materials.

See related items:

SI GaAs substrate and epi markets to show 6% CAAGR unit growth through 2015

Tags: Sumitomo Chemical Sumika Electronic Materials GaAs epitaxial wafers GaN

Visit: www.sumitomo-chem.co.jp/english