SDK to Re-expand Capacity to Produce High-Grade SiC Epitaxial Wafers

TOKYO, Jan 23, 2018 - (JCN Newswire) - Showa Denko ("SDK"; TSE:4004) has decided to re-expand its capacity to produce high-quality-grade silicon carbide (SiC) epitaxial wafers for power devices, which have already been marketed under the trade name of "High-Grade Epi" (HGE), in addition to currently conducted expansion work of HGE production facilities. After the initial expansion work which is scheduled to be finished in this April, SDK's capacity to produce HGE will be increased from current 3,000 wafers*1 per month to 5,000 wafers per month. After the re-expansion work which is to be finished in September 2018, that capacity will be increased to 7,000 wafers per month.

When compared with the mainstream silicon-based semiconductors, SiC-based power devices can operate under high-temperature, high-voltage, and high-current conditions, while substantially conserving energy. These features enable device manufacturers to produce smaller, lighter, and more energy-efficient next-generation power control modules. In addition to the traditional use as power sources, SiC-based power devices are now replacing conventional silicon-based power devices for on-board use such as inverter modules for railcars, on-board battery chargers and rapid charging stations for EVs, in parallel with rapid expansion of the EV market.

SDK's SiC epitaxial wafer business has been achieving growth rate higher than that of the market because manufacturers of power devices appreciate the lowest incidence of crystal defects and the highest homogeneity of wafers in the world which SDK's HGE achieved. SDK decided this time to conduct re-expansion of its HGE production facilities since the initially expanded HGE production facilities are expected to reach full capacity operation by the middle of 2018.

SDK will continue responding to the demands of the market through establishment of stable supply system of HGE.

*1 This number is based on a conversion into SiC epitaxial wafers for power devices having withstanding voltage of 1,200 V.

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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