The company plans on spending about 350 billion yen to triple its capacity to produce 300mm wafers within the next three years.
The world's number one, Shin-Etsu Chemical has already pledged 120 billion yen for expansion.
These two wafer companies control more than 60% of the global market.
Sumco will expand two domestic plants and one joint venture plant in Taiwan in hopes of supplying the wafer demand for chips used in cell phones and flat panel TVs.
Shin-Etsu built two new plants in Japan last year and expanded one plant in Japan and one in the U.S.
Demand for wafers continues to be in short supply with projected growth of 40% in 2007 and 30% in 2008.
The two companies are neck and neck in market share...but Sumco is outpacing number one Shin-Etsu in investing in the future.
No matter the outcome...Japan will still be the number one supplier for the world.
What do you think?
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