Sumco raising $50B to expand wafer output

November 30, 2006 – Sumco Corp. plans to raise up to 59.7 billion yen (about US $50.8 million) by issuing new shares, in order to boost production of 300mm wafers, according to Japanese press reports.

The wafermaking JV between Mitsubishi Materials Corp. and Sumitomo Metal Industries Ltd. says it will issue 6.85 million new shares, about a third of them to be issued overseas, plus an additional 650,000 for overallotments. The company also is planning a two-for-one stock split in January to attract individual investors.

Sumco, which earlier this fall acquired a majority stake in Komoatsu Electronic Metals Co., aims to boost monthly production to 1 million units by mid-2008 to keep up with similar ramp-ups by rival top silicon producer Shin-Etsu Chemical Co.


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