Hitachi Metals, Ltd.

2004 News Release

September 7  

 

Sputtering Target Materials for Liquid Crystal Panel Processing Base Established in South Korea

—Augment Processing Output and Address Demands for Large-Size Panels—
—Set to Boost Market Share in South Korea and Taiwan—
Tokyo, Japan, September 7, 2004 — Hitachi Metals, Ltd., announced it has established a company to act as a processing base in South Korea in response to increased demand for sputtering target materials*1 (hereinafter referred to as target materials) for liquid crystal panels and to address increasing demands for large-size panels. The addition of a processing base in South Korea to that already operating in Taiwan is intended to augment processing output and improve customer satisfaction levels in a bid to boost Hitachi Metals’ share of the target materials market in both countries.

1. Background and overview

Volume production of liquid crystal panels for LCDs and liquid crystal televisions in South Korea and Taiwan continues to expand, as does demand for the target materials used for their wiring. To date, Hitachi Metals has been marketing target materials in South Korea via its wholly owned subsidiary in Taiwan, Five Ace Technology Co., Ltd. (hereinafter referred to as Five Ace Technology). To respond to burgeoning demand in both South Korea and Taiwan, however, such measures as the augmentation of processing output have become necessary. In addition, in order to curtail costs related to the delivery of large-sized sputtering materials and to more flexibly respond to changes in demand, the Company has decided to establish a production base closer to its target market in South Korea.
The new company, HMF Technology Korea Co., Ltd., is expected to respond to the increasing demand in both Korea and Taiwan, shorten delivery lead times and enhance technical support.
It is intended that this measure will serve to augment processing output and improve customer satisfaction levels in a bid to boost Hitachi Metals’ market share in both countries for high purity, high-density, fine-crystalline and homogenous microstructure target materials.

2. New company profile

(1)Company Name	:	HMF Technology Korea Co., Ltd.
(2)Business	:	Machine processing (cutting and machining) of target materials, bonding to backing plates*2, sales and technical support
(3)Location	:	Pyongtaek-si, Kyonggi-do (Approximatelyone hour south of Seoul by expressway)
(4)Representatives	:	Managing Director Akitoshi Hiraki, Local Representative Ryosuke Yasuda
(5)Established	:	July 2004
(6)Capital	:	1.5 billion won (approximately ¥150 million) Hitachi Metals, 70%; Five Ace Technology (Hitachi Metals' wholly owned subsidiary), 30%)
(7)Employees	:	Approximately 40 (Fiscal 2005)
(8)Shipments commence	:	January 2005

3. Projected sales

Fiscal 2006 ¥4 billion/year (in South Korean market)

Underpinned by the fiscal 2005 medium-term management plan that it is currently implementing, Hitachi Metals is promoting the optimum location of its manufacturing sites in order to sustain the growth of its core competency products. In Asia, growth in the tool steels business is expected to continue, and the establishment of a new target materials processing company will further develop sales growth in the Asian region.

Customer inquiries:
	Akitoshi Hiraki Specialty Steel Company, Hitachi Metals, Ltd. Telephone: +81-3-5765-4391 Facsimile: +81-3-5765-8317
Press inquiries:
	Akio Minami Corporate Communications Office, Hitachi Metals, Ltd. Telephone: +81-3-5765-4079 Facsimile: +81-3-5765-8312

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(Reference)

*1 Sputtering Target Materials

The manufacture of thin film materials is undertaken using the now mainstream sputtering technique. In an atmosphere containing trace elements of argon gas, target objects (substrate etc.) are placed on the positive electrode and sputtering materials on the negative electrode. When an electric current is applied, the argon gas changes to plasma and electrons are sputtered by the target materials. By bonding with the target object, these electrons form a thin film.
Using carefully selected raw materials, thermal plasma liquid droplet refining technology, hydrostatic pressure during heating and deformation processing technology, Hitachi Metals' target materials make possible high purity, high-density uniform precision microsystems.

Hitachi Metals' Target Materials Lineup

Field of application	Materials
Flat panel displays	Cr, Cr alloys (Cr-Mo and others*); Mo, Mo alloys (Mo-W?Mo-Nb and others); Al, Al alloys (Al-Ti and others); Ag alloys; Cu, Cu alloys (Cu-Cr and others)
Hard disks	Cr alloys (Cr-Mo, Cr-Ti, Cr-W and others); Ni alloys (Ni-Al, Ni-P and others); Ru, Ru alloys (Ru-Al and others); Co alloys (Co-Cr-Ta-B and others), Ti alloys, alloys for soft magnetic films (Fe-Co-B, Fe-Ta-C, Co-Nb-Zr and others) Cr
Semiconductors	Ta, Ru, Co-Fe-B, WSi, MoSi, TaSi, Ti-W, W
Other	TiSi, Ni-Cr, CrSi, Cr-B, Cr-Al

(*) Other alloys also capable of a reaction

*2 Backing Plates

These are attached (bonded) to the target material and act as electrodes and cooling boards.

Overview of Five Ace Technology Co., Ltd.

(1)Business	:	Machine processing (cutting, machining) of sputtering target materials, bonding to backing plates, sales and technical support.
(2)Location	:	No.7 & 7-1, Wu-chuan 8 Road, Wu-ku Industrial Park, Taipei Hshien, Taiwan
(3)Representatives	:	President: Akitoshi Hiraki Chief Executiev Officer: Shigeru Taniguchi
(4)Established	:	July 1, 2001
(5)Capital	:	Hitachi Metals, Ltd. 100%
(6)Employees	:	Approx. 60
(7)Sales	:	Approximately ¥700 million (Year ended March 31, 2004)

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