Sumitomo Bakelite Co., Ltd., through Sumitomo Bakelite (Suzhou) Co., Ltd. (SSB) has decided to acquire new land and build a new plant. Accordingly, the company wants to bolster its production capacity for semiconductor packaging materials.

Sumitomo Bakelite estimates that it currently holds the largest global market share for SUMIKON® EME, epoxy resin molding compounds for encapsulation of semiconductor devices. Accordingly, they hold about 40 percent global market share.

Establish Stable Supply Chain

SSB started production in 1997 to serve customers in China. Recently, in July 2021, it expanded production capacity to meet customer needs in the growing Chinese market. Hence, adding lines to its 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. Furthermore, to secure sufficient supply capacity as a viable semiconductor encapsulating material for the Chinese market, the company will construct a new plant. Most importantly, this will expand its production capacity by 1.3 times.

The site for the new plant is about 60,000sq.m. The company has already received approval from the authorities. Accordingly, it plans to complete the installation of the building and production line in 2023 and start production in early 2024. It said, total investments is approximately ¥6.6 billion. This includes land, buildings, production lines, and ancillary facilities.

With the construction of this new plant, Sumitomo Bakelite will further expand the company’s market share in China. In addition, establish an optimal supply system in each market to further strengthen our business.