Optimistic about the semiconductor outlook, Hitachi boosts its grinding fluid production capacity by 500%.

Hitachi Chemical announced in a press release on the 30th that, driven by increasing demand for semiconductor components and a corresponding rise in demand for semiconductor polishing materials, the company has decided to invest approximately 3 billion yen in expanding production capacity at its Taiwan and Japan facilities. The goal is to increase the production capacity of its semiconductor polishing material, “NanoCeria Slurry,” to roughly five times its current level by summer 2018. “NanoCeria Slurry” is a new product in Hitachi Chemical’s chemical mechanical polishing slurry (CMP slurry) lineup. Compared to existing products, it can reduce polishing-induced damage on semiconductor substrates to as little as one-fifth.

　　Hitachi Chemical announced in a press release on the 30th that, due to increasing demand for semiconductor components and the resulting surge in demand for semiconductor polishing materials, the company has decided to invest approximately 3 billion yen in expanding production capacity at its Taiwan and Japan facilities. The goal is to increase the production capacity of the semiconductor polishing material “Nano Ceria Slurry” to roughly five times its current level by summer 2018.

　　“Nano Ceria Slurry” is a new product in Hitachi Chemical’s chemical mechanical polishing (CMP) slurry lineup. Compared to the previous product, it can reduce polishing damage on semiconductor substrates to approximately one-tenth of the original level.

　　Hitachi Chemical pointed out that the company currently manufactures “Nano Ceria Slurry” at its Yamazaki facility in Japan. In addition to planning to expand production capacity at the Yamazaki facility, the company will also introduce new mass-production equipment at its Taiwanese subsidiary, Hitachi Chemical Electronic Materials (Taiwan) Co., Ltd., to promptly meet the demand from Asian semiconductor manufacturers and begin producing “Nano Ceria Slurry.”

　　Hitachi Chemical announced its financial results for the first three quarters of this fiscal year (April–December 2017) on January 30. Driven by strong demand for 3D NAND Flash, which boosted sales of CMP slurries, as well as robust demand for products such as photoresist films used in PCBs, consolidated revenue surged by 24.2% to 497.7 billion yen. However, due to expenses incurred from the write-down related to the capacitor business following violations of antitrust laws, consolidated operating profit declined by 11.8% to 35.9 billion yen, and consolidated net profit shrank by 5.6% to 29.5 billion yen.

　　Hitachi Chemical pointed out that, due to forecasts of a worsening smartphone market this quarter (January-March 2018), sales of electronic and resin materials are likely to fall short of expectations. Consequently, the company has lowered its consolidated operating profit target for the current fiscal year (April 2017 – March 2018) from the previously estimated 51 billion yen to 49 billion yen, and its consolidated net profit from 40.5 billion yen to 40 billion yen. Meanwhile, the consolidated revenue remains unchanged at the originally projected 670 billion yen.

　　According to quotes from the Jingshi XQ Global Winners System, as of 12:15 a.m. on January 31, Hitachi Chemical plunged 3.34% to 2,837 yen, reaching a new low in the past month and a half (since December 15, 2017).

　　In terms of market share, the U.S. company Cabot continues to hold the world’s largest share of CMP polishing slurries. However, Cabot’s market share has steadily declined: from 75% in 2001 to 65% in 2003, 38% in 2010, and 36% in 2015. This indicates that despite the expansion of the CMP market, Cabot’s monopolistic position remains solid, with its market share declining at a relatively slow pace. Looking ahead, the supply market for CMP polishing slurries is moving toward greater diversification, and regional self-sufficiency rates are gradually increasing. According to data released in 2016, Cabot’s market share fell by 1 percentage point to 35%, yet it still ranks first globally. The U.S. company Versum experienced a decline in market share in 2016, causing it to drop from second to third place. Meanwhile, Japan’s Hitachi Chemical rose to second place thanks to its proactive efforts to capture the Asian market. In fourth place is Fujimi of Japan, fifth is FijiFilm also of Japan, and sixth is Dow Chemical of the United States. Thus, it is evident that currently, the Asian CMP polishing slurry market is still largely dominated by companies from the U.S. and Japan.

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