“With our existing manufacturing facilities, supply can’t keep up with demand,” says Chairman Mayuki Hashimoto.
Helping to pay for the expansion will be an issue of 60 million new shares – representing a fifth of its outstanding stock – to raise $1.1 billion.
Sumco and fellow Japanese supplier Shin-Etsu Chemical have a combined 50%+ share of the silicon wafer market.
$1.8 billion will be spent on a new manufacturing plant near to existing facilities in Saga Prefecture.
Building starts in 2022 with first production in H2 2023 and full production in 2025.
The remaining $200 million will be spent on expanding a subsidiary’s capacity and on a “phased expansion” of foreign facilities.