Showa Denko to Establish Monofluoromethane Gas JV in South Korea

TOKYO, Dec 19, 2016 - (JCN Newswire) - Showa Denko ("SDK"; TSE:4004) and SK Materials Co., Ltd. (SKM), of South Korea, has concluded an agreement to establish a joint corporation which is to produce and sell high-purity Monofluoromethane gas (CH3F) to be used in the manufacturing process of semiconductor chips.

CH3F is a specialty gas used in the manufacturing process of semiconductor chips for micromachining nitride film by etching. CH3F is mainly used in the manufacture of semiconductor memory chips including NAND flash and DRAM that requires micromachining technology. Since its etching selectivity is higher than those of other gases, CH3F is suitable for micromachining of multi-layer structure of 3D NAND flash. The demand for CH3F has been increasing these days due to start-up of many lines to manufacture 3D NAND flash.

This time, SDK and SKM, which is a member of the SK Group of South Korea and produces high-purity gases for electronics, reached an agreement to establish a joint company and its plant to produce CH3F, and make the new company sell that gas. The two parties plan to establish the new company in February 2017, and finish construction of the new plant in August 2017. In addition, after establishment of the joint corporation, SDK and SKM will aim to further expand joint operation to produce and sell high-purity gases for manufacture of semiconductor chips and display panels.

SDK's business to produce and sell high-purity gases for electronics has a history of almost 40 years, and its technologies for refining, analyzing and controlling quality of high-purity gases that SDK fostered through many years are rated very high by its customers. SDK will continue offering optimum gases for customers' processes to produce semiconductor chips, as the only company in the world that produces and sells a variety of high-purity gases for electronics including fluorinated, chlorinated, brominated, and ammoniated gases.

In its ongoing medium-term business plan "Project 2020+," SDK positions its business to produce and sell high-purity gases for electronics as "Growth-accelerating" business. SDK will continue responding to the rapid growth of the global market for electronic materials, strengthening and expanding its high-purity gas business.

Outline of the joint company

Company name: SK Showa Denko Co., Ltd.Head office: Yeongju-si, Gyeongsangbuk-do, the Republic of KoreaEstablishment: February 2017 (planned)Capital: 21 billion won (planned)Shareholders: SDK (49%); SK Materials (51%)Scope of business: Production and sale of high-purity gas for electronics (CH3F)

About Showa Denko K.K.

Showa Denko K.K. ("SDK"; TSE:4004, US:SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial and high-performance gases and chemicals and high-purity gases and chemicals for the semiconductor industry, and the Inorganics Sector provides ceramics products such as alumina, abrasive, refractory and graphite electrodes and fine carbon products. Today, the Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high-bright LEDs and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit www.sdk.co.jp/english/.

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