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SUMITOMO BAKELITE CO., LTD. (Headquarters: in Tokyo; Tsuneo Moriya, President)
has been studying the feasibilities of offshore manufacturing sites targeting
expansion of flexible PCB business and came to a decision of establishing
a new, wholly owned subsidiary in the Socialist Republic of Vietnam: an
integrated manufacturing plant of flexible circuits to be built for the
first time in that country.
The domestic
flexible circuit market has been keeping a constant growth higher than 10%
annually due to the rapid development of the IT industry supported by vigorous
demand and needs to pursue compact, light weight, multi-functional devices and
apparatus including cell-phones, notebook PCs., PC peripherals, LCDs., digital
home appliances.
In this line of business SUMITOMO BAKELITE is
providing quality services well- reputed among clients /manufacturers of
cell-phones and LCDs. including high-speed signal designs and structural
configurations to ensure high flexural strength. Accordingly SUMITOMO
BAKELITE has been enlarging the production capacity of plants by yearly step-up
at AKITA SUMITOMO BAKELITE CO., LTD., a wholly owned subsidiary, and SB FLEX
Philippines Inc. (abbreviated as SFP), a finishing stage assembly base of
flexible circuits. The future flexible circuit market is expected to increase
higher-density wiring substrates (e.g. so-called COFs., etc.) in compliance with
the enhanced functionalization of prevailing and emerging
devices. Nevertheless, the supply and allocation positions from those 2
plants are getting tighter and not enough to answer the ever expanding growth of
the industry and the demand. In addition apparently the production of mobile
communication apparatus above all will be concentrated in Asian countries along
with the development of EMS (Entrusted Manufacturing Subsidiary). In view of
all these surroundings and situations we determined to realign our manufacturing
formation comprising the renewal of the Akita plant into a technical development
and refined manufacturing center, establishment of a new plant in Vietnam in
addition to the existing SFP. This time in Vietnam an integrated
manufacturing line including circuit making and assembly is supposed to be
installed and we are prepared to make further investment based on our study on
the future market trend.
As for the convenience of the
location, attractive tax incentives, low cost & high quality labor, reliable
& stable services of infrastructures are the vital factors which led us to
make the choice among others. Outline of the flexible PCB manufacturing
plant in Vietnam
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