【Company Information】Notice on the Expansion of Production Capacity for High-performance Graphite Products for Semi-conductors

2022.10.27

 Toyo Tanso Co., Ltd (hereafter referred to as 'Our Company') has decided to make capital investments to increase production capacity of high-purity graphite products and SiC-coated graphite products in order to meet strong demand for Si semiconductor and compoud semiconductor applications such as SiC (silicon carbide) semiconductors


【Background to investment】

 Our Company is involved in the manufacture and sale of high-performance graphite products used as structural components in semi-conductor manufacturing equipment; as a result, the demand for graphite products is rising in response to strong semiconductor demand driven by developments in IoT, AI and EVs. The wafer manufacturing process for Si semi-conductors and compound semi-conductors, including SiC semi-conductors, involves ultra-high temperatures of 1,000℃ or more and the progress of miniaturisation in semi-conductor processes requires high purity in graphite, which is a structural component.

 Furthermore, high-purity graphite products is also used in semi-conductor manufacturing processes such as ion implantation, and in various applications such as solar cells and fiber optics manufacturing.

SiC coated graphite products, which are isotropic graphite coated with a SiC film that suppresses particle and gas generation from the graphite substrate, are used as components in the epitaxial process of silicon semiconductors and SiC semiconductors, which represent power semiconductors that handle high voltages and large currents.

Demand for SiC semi-conductors, in particular, is rising in line with the growth of electric vehicles and energy-saving-related markets.

 Our Company will invest a total of approximately JPY 7 billion to increase the production capacity of high-purity graphite products and SiC-coated graphite products to meet market demand. It is based on a growth strategy to reliably capture demand in the semi-conductor market, which is expected to grow and expand in a long term basis.

In addition, the medium-term management plan calls for a total of JPY 37 billion in capital investment over the five-year period from 2022 to 2026, 60% of which will be a strategic investment.
The investment in this equipment is not just a response to increased production, but also aims to improve the production's efficiency by further pursuing quality and reducing manpower through automation and other means.

This will increase the production capacity of high-purity graphite products and SiC-coated graphite products by approximately 1.5 times in 2025 and 2024, respectively, compared to 2022. Our company will continue to achieve steady growth by strengthening its production and sales systems to meet customer needs and market trends.


【Investment overview】
Increased production capacity for high-purity graphite products (Takuma Plant, Mitoyo City, Kagawa Prefecture)
(1) Description of investment ...High purification treatment furnace (building extension)
(2) Investment amount ...Approx. 5 billion yen
(3) Enhancement capacity ...Approx. 1.5 times (FY2022)
(4) Operational period ...2025
SiC coating treatment capacity Graphite products production capacity increase (Onohara Production Technology Center, Kanonji City, Kagawa Prefecture)
(1) Description of investment ...SiC coating treatment furnace
(2) Investment amount ...Approx. 2 billion yen
(3) Enhancement capacity ...Approx. 1.5 times (FY2022)
(4) Operational period ...2024
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