February 24, 2011
Furukawa Electric Co., Ltd. will enhance production capacity at the Furukawa Circuit Foil Taiwan Corporation (FCFT), a subsidiary manufacturing electrodeposited copper foil for electronic circuits in Taiwan. The Company will invest 5.9 billion yen in the project. Production capacity will be enhanced gradually from July 2012 and will become 1,200 tons/month, up 50% from the current capacity (800 tons/month), by January 2013.
With the enhancement, the Company will bolster its supply system for copper foil for electronic circuits in Asia, where demand is surging.
[The exterior of FCFT]
Demand for copper clad laminate (CCL), made by adhering resin film and copper foil, is expected to grow at 10% per annum with the growth of the global electronic industry market (see attached diagram).
As environmental awareness is rising, eco-friendly CCL, including halogen-free CCL(note 1) and CCL for lead-free soldering (note 2), has come to account for 25% of total CCL, and the ratio is expected to rise further.
About 90% of CCL is manufactured in Asia, especially in China and Taiwan, and the production of CCL will increase, particularly eco-friendly CCL.
FCFT has manufactured electrodeposited copper foil for electronic circuits since its foundation in 1996.
FCFT has a share of 15% in the global market for copper foil for electronic circuits suitable for eco-friendly CCL, including halogen-free CCL and CCL for lead-free soldering, earning high marks for quality, including adhesiveness and homogeneity.
Expecting that demand for copper foil for electronic circuits will rise sharply, especially copper foil for eco-friendly CCL, the Company has decided to boost production capacity of FCFT 50%, from 800 tons per month to 1,200 tons per month, and to enhance the supply system of copper foil for electronic circuits in Asia.
Overview of our electrodeposited copper foil production enhancement plan
The Company is establishing a new company to manufacture electrodeposited copper foil for Lithium-ion batteries, with an investment of 6.9 billion yen, in Taiwan. The production capacity of the company will be 500 tons/month. Meanwhile, production capacity at Imaichi Plant will increase to about 1,000 tons/month, up from 550 tons/month presently. As a result, the production capacity of the Company for copper foil for batteries will increase to 1,500 tons/month in 2013 (please refer to the news release announced on February 1).
With the production enhancement at FCFT, the total production capacity for electrodeposited copper foil for electronic circuits at FCFT and Imaichi Plant will become 1,700 tons/month in 2013.
The total production capacity for electrodeposited copper foil will become 3,200 tons/month in 2013, up about 70% from the current capacity of 1,850 tons/month.
Attached diagram: CCL demand forecast
(Note 1) Halogen-free CCL : Copper clad laminate that uses resin that does not include halogen flame retardant
(Note 2) CCL for lead-free soldering : Copper clad laminate that enables lead-free soldering, using high heat-resistant resin
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