Sumitomo Bakelite (Suzhou) Co., Ltd. builds a new plant
for Encapsulation of Semiconductor Devices

Tokyo, Japan –September 29, 2022 Sumitomo Bakelite Co., Ltd. (TOKYO: 4203 HQ: Shinagawa-ku, Tokyo, President and Representative Director: Kazuhiko Fujiwara) (Sumitomo Bakelite (Suzhou) Co., Ltd.: hereinafter “SSB”) has decided to acquire new land and build a new plant to increase its production capacity for semiconductor packaging materials.

Sumitomo Bakelite Co., Ltd. estimates that it currently holds the largest worldwide market share (approximately 40%) for “SUMIKON^®” EME, Epoxy Resin Molding Compounds for Encapsulation of Semiconductor Devices. SSB started production in 1997 to serve customers in China. In July 2021, we expanded our production capacity to meet customer needs in the growing Chinese market by adding lines to our current plant.

In the semiconductor market, demand is increasing for remote work peripherals, home appliances, and data center applications, as well as for renewable energy applications to achieve carbon neutrality, and for automotive (autonomous driving and EV) and industrial applications. In order to secure sufficient supply capacity as a viable semiconductor encapsulating material for the Chinese market, which is expected to expand further in the future, we will secure land in the Suzhou Industrial Park and construct a plant to expand our production capacity in China by 1.3 times.

The site for the new plant is about 60,000 m², and we have already received approval from the authorities, and plan to complete the installation of the building and production line in fiscal 2023 and start production in early fiscal 2024. We plan to invest approximately 6.6 billion yen, including land, buildings, production lines and ancillary facilities.

With the construction of this new plant, we will further expand our company's market share in China, which is expected to expand in the medium- to long-term, and establish an optimal supply system in each market to further strengthen our business.

Sumitomo Bakelite (Suzhou) Co., Ltd. builds a new plant for Encapsulation of Semiconductor Devices（PDF: 383KB）

Sumitomo Bakelite Co., Ltd., Information & Telecommunication Materials Div.