Japan's SUMCO to raise $1.1 bln from new shares to expand silicon wafer output (updated)

SumCo

30/09/2021 09:23

(Adds comment, detail)
    TOKYO, Sept 30 (Reuters) - Japan's SUMCO Corp  3436.T  said
on Thursday it would sell 128 billion yen ($1.14 billion) of new
shares to fund an increase in silicon wafer production amid
growing demand from chip makers struggling to keep up with
global demand.
    The additional capacity will come on line by 2023 and allow
SUMCO to fulfil its contracts over the next five years, the
company said.
    "We are sold out until 2026," the company's CEO, Mayuki
Hashimoto, said at a news briefing.
    SUMCO is also considering adding production in Taiwan, which
has the world's biggest concentration of chip foundries, he
added.
    Shortages of semiconductors have forced some manufacturers,
including the world's major automakers, to curtail production
plans as increased demand for smartphones, tablets and other
consumer devices use up more chips.
    New technologies, such as artificial intelligence, 5G
connectivity and autonomous drive vehicles, are expected to
further spur demand for semiconductors.
    
($1 = 112 yen)

 (Reporting by Tim Kelly
Editing by Chang-Ran Kim and Kim Coghill)
 ((ran.kim@thomsonreuters.com; +81-3-4520-1228;))