Ferrotec : Notice of Capital Investment (Acquisition of Fixed Assets) by Subsidiary that Manufactures Components for Semiconductor Manufacturing (Quartz Crucibles and Silicon Parts) picture_as_pdf PDF
Notice of Capital Investment (Acquisition of Fixed Assets) by Subsidiary that Manufactures
Components for Semiconductor Manufacturing (Quartz Crucibles and Silicon Parts)
Ferrotec Holdings Corporation (Representative Director: He Xian Han; hereinafter "the Company") announces that, at the meeting of Board of Directors held today, we approved a resolution concerning capital investment (acquisition of fixed assets) for the purpose of increasing production capacity at Ningxia Dunyuan Juxin Semiconductor Technology Co., Ltd. (hereinafter "FTNC"), which is our subsidiary that manufactures components for semiconductor manufacturing (quartz crucibles and silicon parts). Details are as follows.
1. Overview of capital investment
(1)
Planned investment
Approx. 530 million yuan (approx. 10.8 billion yen)
*1 Chinese yuan = 20.39 yen
(2)
Details of major capital
a. Capacity expansion of the existing plant (Plant No. 1) in Yinchuan area
investment
-Quartz crucibles: Expansion of melting machines for large-diameter products,
automation equipment, etc.
b. Construction of a new plant (Plant No. 2) in Yinchuan area
-Total site area: Approx. 27,300 m2
-Total building area: Approx. 33,200 m2
-Manufacturing facilities (silicon parts, quartz crucibles), research facilities, etc.
(3)
Financing method
To be funded by cash on hand and borrowings
(4)
New plant (No. 2)
Start of construction: October 2022
construction schedule
Building completion: August 2023 (scheduled)
Arrival and adjustment of equipment: September 2023 (planned)
Start of production: October 2023 (planned)
2. Reason of investment
In the quartz crucible business of FTNC, products have been produced exclusively at the Yinchuan Plant. However, there have been strong inquiries from those in the semiconductor and solar cell markets, which are our target markets, and we have decided to increase production capacity in anticipation that this trend will continue in the future. The existing plant (Plant No. 1) has the capacity to handle a wide range of products from small to large diameters, but we will invest in both the existing plant and the new plant (Plant No. 2) to increase capacity for large-diameter products, for which demand is expected to grow in the future.
In the silicon parts business, as we announced in "Notice of Third Issuance of New Shares through Third-Party Allotment by Subsidiary that Manufactures Components for Semiconductor Manufacturing (Quartz Crucibles and Silicon Parts)" dated May 17, 2022, against a backdrop of strong demand, we will proceed with the construction of the Changshan Plant, our third base following Yinchuan and Hangzhou. However, we will also increase the capacity of the existing Yinchuan Plant and aim to further expand our customer base by increasing the number of products produced.
In addition, we will establish a new technical research center in the new plant (Plant No. 2) to improve our research and development capabilities to ensure the sustainable development of the company.
No. 23 Guangming West Road, Yinchuan Technological and Economic
Development Zone, Ningxia, China
(3)
Title and name of
He Xian Han, Representative Director
representative
(4)
Contents of business
Manufacture and sale of components for semiconductor manufacturing (quartz
News Release: Ferrotec Holdings Corporation
(6890 TSE Standard)
crucibles and silicon parts)
(5)
Capital
187,144,000 yuan (approx. 3.8 billion yen)
*1 Chinese yuan = 20.39 yen
(6)
Date of establishment
April 20, 2011
(7)
Major shareholders and
Hangzhou Dahe Thermo-Magnetics Co., Ltd. (FTH, a wholly-owned consolidated
shareholding ratio
subsidiary of the Company): 60.13%
Capital relationship
FTNC is a subsidiary 60.13% of whose voting rights are
Relationship between
held by FTH, a consolidated subsidiary of the Company.
(8)
Personnel relationship
One director of the Company concurrently serves as the
FTNC and the company
director of FTNC.
Business relationship
Nothing is applicable.
4. Future outlook and prospects
The impact on the consolifated business performance of the Company for the current fiscal year through this matter is expected to be minor. However, we will promptly disclose relevant items as soon as they are confirmed.
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Ferrotec Holdings Corporation published this content on 21 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2022 06:09:02 UTC.
Ferrotec Holdings Corporation is a Japan-based company mainly engaged in the semiconductor equipment related business, the solar cell related business and the electronic devices business. The Company has three business segments. The Semiconductor Equipment Related segment is engaged in the production of metal processing products, quartz products, ceramics products and chemical vapor deposition silicon carbide (CVD-SiC) products for vacuum seal and manufacturing equipment, as well as the processing of silicon wafers and the cleaning of equipment parts. The Solar Cell Related segment is engaged in the production of silicon crystal manufacturing equipment, silicon products for solar cells, and quartz crucibles. The Electronic Device segment is engaged in the production of thermal modules, power semiconductor substrates and magnetic fluids. The Company is also engaged in the production of saw blades, machine tools and surface treatment products.
Ferrotec : Notice of Capital Investment (Acquisition of Fixed Assets) by Subsidiary that Manufactures Components for Semiconductor Manufacturing (Quartz Crucibles and Silicon Parts) picture_as_pdf PDF
FERROTEC HOLDINGS CORPORATION 
