Sumitomo Bakelite Co., Ltd. has announced the completion of its new factory in China. Accordingly, the new plant in China will manufacture semiconductor encapsulation materials.

The company acquired the new land in 2022. Specifically, the new factory is in Jiangpu Road, Industrial Park, Suzhou City in China’s Jiangsu. The new factory has already been completed and the company held completion ceremony recently.

Capacity Complements Demand

Sumitomo Bakelite holds the world’s top share of approximately 40% in semiconductor encapsulation materials. The company began production in the Chinese market in 1997. Moreover, it has expanded its production capacity in the ever-growing Chinese market to meet customer needs. These include adding a production line to its current factory in July 2021.

During the completion ceremony, the company invited leaders of the Suzhou Industrial Park Management Committee, and government officials. In addition, the company also invited those who contributed to the construction. Work is underway to officially start up the new factory as it will begin full-scale mass production in 2025.

The new factory will expand production capacity in China by 1.3 times, ensuring sufficient supply capacity. With the Chinese market expected to continue expanding in the future, the company will increase its share in the Chinese market. Particularly, not only for semiconductor-related applications such as smartphones, PCs, and home appliances, but also for power devices, mobility applications, and advanced AI applications.

State-of-the-Art Plant

As a state-of-the-art production plant, the plant will have automated processes, AI, and IoT for automated process monitoring. Thus, complying with China’s increasingly strict safety and environmental regulations, it will fully use electricity derived from renewable energy sources and will strive to use energy more efficiently.

In addition, the plant will introduce the latest environmental protection equipment. Therefore, ensuring safe, secure, environmentally friendly, and energy-saving production. This will also contribute to the realization of carbon neutrality.

Sumitomo Bakelite has four production bases for semiconductor encapsulation materials in Japan, Singapore, Taiwan and China, and is implementing a global strategy to ensure stable supplies to major markets, aiming to expand its business by responding accurately and quickly to customer needs in each region.

The company decided to invest in the factor to respond in a timely manner to the Chinese government’s Made in China 2025 initiative.

Moreover, it is also a strategic initiative that introduces the Group’s cutting-edge technology with the aim of creating a smart factory.
Going forward, this factory will contribute to the further development of the semiconductor industry as a strategic base for the Group.

02 October 2024