Sumitomo Bakelite Co., Ltd. doubles production capacity of semiconductor encapsulation materials in its Taiwan subsidiary. The company will install new equipment at Sumitomo Bakelite (Taiwan) Co., Ltd. to achieve this goal. It will construct a new factory building on the premises of the present facility, investing about 3.3 billion yen (US$29 million). Production is slated to commence in the middle of 2023.

Potential of Taiwan Market

In the Taiwanese market, the company commenced production in 1999 as the only local production company of semiconductor encapsulation materials.

The Taiwanese semiconductor market is expected to record long-term growth amid robust global demand. Market growth will come from advancement of next-generation communications, internet of things (IoT), digital transformation (DX), and increase in the number of semiconductors incorporated in a vehicle. In addition, recovery of Taiwanese outsourced assembly and testing (OSAT) companies will also support the growth of the local semiconductor market.

Ramps up Capacity

The company plans to increase its supply capacity by expanding production capacity of existing lines. It will also use backup production from a new line to be launched next year at its Chinese subsidiary Sumitomo Bakelite (Suzhou) Co., Ltd. Even with these capacity boost, the company expects that it still cannot meet future demand increase. Thus, it has decided to install a new production line.

Sumitomo Bakelite intends to meet the demand increase in the Taiwanese market by boosting its capacity. At the same time, it will further strengthen local production and local consumption capability and increase its market share. 

Sumitomo Bakelite holds an about 40 percent share of the global market for semiconductor encapsulation materials.